PROCESS SAFETY MANAGEMENT IMPLEMENTATION

IN PERTAMINA - BADAK LNG PLANT

MISE EN PRATIQUE DE LA GESTION DE LA SCURIT PERTAMINA
USINE DE PT BADAK

Munir Amsyari
PT Badak NGL, Indonesia

John Sunarmo
PT Badak NGL, Indonesia

ABSTRACT

The Badak LNG Plant is located in Bontang, East Kalimantan, Indonesia, and owned by Pertamina
(Indonesian Government Oil Company). The total production is about 18.00 million tones per annum of
LNG. In the year 2000 the total LNG production of the Badak LNG Plant will be about 21.64 million
tones per annum, produced from eight LNG Trains. These company milestones and other
achievements are based on the Pertamina initiatives in 1977 to build two LNG Trains in Bontang. In
order to maintain continuous supply of LNG to the buyers, Badak LNG Plant Management has
established The Company Philosophy i.e. To Operate the Badak LNG Plant Safely, Reliably and
Efficiently. Process Safety Management has been implemented in the Badak LNG Plant to fulfill The
Company Policy. Management of Change, one of the Process Safety Management elements, is
considered the most important element in the support of the Plant operations of the Badak LNG Plant.
This paper will explore the Badak LNG Plant Experiences to apply Management Of Change starting
with the initial implementation. The Badak LNG Plant Management Of Change is divided into three
stages i.e. Evaluation/Study Stage, Safety Review Stage and Documentation Stage. These three
stages are combined into a single component referred to as the Project Flow Of Work. In order to
ensure that the Safety Review Stage can be conducted in a timely manner to support the Project
Flow of Work, the Badak LNG Plant has developed and established a Hazops Committee. This
group consists of multi disciplined members and is chaired by the Process Engineering Section Head.
A high commitment and consistent application of Management Of Change has helped the Badak LNG
Plant succeed to fulfill the Company Philosophy especially related to Safety. Up to the end of July
1999, the Badak LNG Plant had achieved 50 Million Working Hours without a lost time accident.

RESUME

Lusine de GNL de PT Badak est situe Bontang, Kalimantan Est (anciennement Borno),
Indonsie. Elle appartient Pertamina (Socit Nationale Indonsienne des Hydrocarbures). Cette
usine produit environ 18 millions de tonnes de GNL par an. Sa capacit de production sera porte
21,64 millions de tonnes par an partir de lan 2000, ce grce au 8e train de liqufaction. Ces
rsultats sont le fruit le la dcision de Pertamina, prise en 1977, de construire deux trains de
liqufaction Bontang. Afin dassurer la continuit de lapprovisionnement en GNL requise par les
acheteurs, la direction de lusine a dfini la Philosophie de la compagnie : faire fonctionner lusine
de PT Badak en toute scurit, de faon fiable et efficace. cet effet, PT Badak a dvelopp un
systme de gestion de la scurit. La Gestion du changement est considre comme le principal
lment de la gestion de la scurit assurant le bon fonctionnement de lusine Badak LNG . Cet
expos dcrit lexprience de PT Badak dans lapplication de la Gestion du changement depuis sa
mise en oeuvre. La Gestion du changement comprend 3 tapes : valuation/Phase dtude, Bilan de
la scurit et Documentation. Ces trois tapes sont combines en un seul lment, appel
Circulation des tches projet . Afin de sassurer que les bilans de scurit sont effectus au
moment requis par les projets, PT Badak a mis en place un Comit Hazops . Ce groupe
multidisciplinaire est dirig par le responsable de la section Procds. Lengagement considrable de
PT Badak et lapplication scrupuleuse de la Gestion du changement ont permis de satisfaire la
Philosophie de la compagnie, notamment au niveau de la scurit. En juillet 1999, PT Badak a
comptabilis 50 millions dheures travailles sans accident avec arrt de travail.
1 - INTRODUCTION

1.1 - General

The Badak LNG Plant located in Bontang, East Kalimantan, Indonesia, is operated by
PT Badak Natural Gas Liquefaction, an Indonesian corporation owned 55 % by Pertamina, the
Indonesian State Oil Company, 30 % by Gas Producers group (Vico, Total Indonesie, and Unocal),
and 15 % by JILCO representing the Japanese Buyers. The Badak LNG Plant has seven LNG Trains
in operation capable of producing 18.00 million tons of LNG annually. The eight Train is under start-
up and is expected to produce LNG by the end of 1999. By having eight LNG Trains in operation at
the end of 1999, the total LNG production from the Badak LNG Plant will be about 21.64 million tons
annually.

For guiding company operation, an Operational Plant Philosophy was established since the
beginning of the LNG production in 1977. This Philosophy covers three aspects: Plant Reliability,
Plant Efficiency and Plant Safety. By maintaining this philosophy it is expected that the commitment of
the LNG shipments to the Japanese, Korean and Chinese buyers can be maintained indefinitely.
Since the beginning of LNG shipments in 1977, there has been no cargoes delayed to the customers.
This achievement continues to strengthen the Morale and spirit of the Badak LNG plant personnel to
keep and maintain the Operational Plant Philosophy.

1.2 - Development of the Plant Philosophy

The Management of Badak LNG Plant realizes that the strength and viability of the company
depends on the healthy interaction between the Employees and the Management of the Company.
This healthy interaction can be established and maintained by mutual understanding between the
Management and the Employees by establishing a Corporate Company Culture, which consists of
Company Vision, a Mission Statement, Strategic Objectives, Tactical Objectives, and Company Basic
Policy (see figure 1).

Company Vision
The Badak LNG Plant is the largest LNG supplier in the world, one of the main sources of National
Income for Indonesia and the Agent of Community Development, all employees strive to make this
facility the best LNG Plant in the world.

Company Mission
The company mission is to supply LNG to the Buyers in a reliable manner.

Strategic Objectives
The Badak LNG Plant is to build and maintain the buyers trust, and to prepare for future markets.

Tactical Objectives
The Operational Philosophy is to operate the LNG Plant in a Safe, Reliable and Efficient manner, to
enhance the Technology, and to establish a Master Plan/Technology.

Company Basic Policy
The Basic Policy of the Company covers the following philosophies : Personnel Development,
Operational, Safety, Maintenance Philosophy, Environment Development. Design, Construction and
Expansion philosophies are also included in this Basic Policy.















MAN PERS. DEV. SAFE, RELIABLE BUILD/MAINTAIN TO SUPPLY WORLD
PHIL. AND EFFICIENT BUYERS THRUST LNG TO THE LAGEST
MONEY OPERATION OPERATION BUYERS IN A LNG
PHIL. RELIABLE WAY SUPPLIER
MATERIAL SAFETY PHIL. TECHNOLOGY
MAINTENAN- ENHANCEMENT NATIONAL
MACHINERY CE PHIL. INCOME
MASTER PLAN/ PREPARE FOR
METHOD TECHNOLOGY FUTURE MARKET AGENT OF
ESTABLISHMENT COMMUNITY
ENVIRONMENT ENVIRONMENT DEVELOP-
DEV. PHILOSO- MENT
PHY
DESIGN PHIL.
CONSTRUCT.
PHIL. THE BEST
EXPANSION LNG PLANT
PHIL. IN THE
WORLD









It is PT Badaks policy that Process Safety Management is applied to achieve Safety
Excellence, a general guideline for all personnel to follow the policy is set forth in a dedicated and
comprehensive manual called PT Badak NGL. Process Safety Management Manual. This manual
was officially issued in early 1996. PTB believes that the implementation of Process Safety
Management will be an integral part of the business considerations i.e. production, cost, quality,
benefits and employee relations. Based on PTB requirements for operating the plant, PTB selected
12 elements for supporting PSM implementation in the Badak LNG Plant. This paper will share and
explore PTB experiences in applying the Management of Change element.


2 - PTB PROCESS SAFETY MANAGEMENT

The elements of Process Safety Management have been known and applied in the activities
of the Badak LNG Plant since the beginning of company business in 1977. Therefore, developing and
implementing Process Safety Management is actually an effort to develop a model and socializing it to
all PTB personnel. The model is described in the PT Badak Process Safety Management Manual, as
the integration of three major components of the Badak LNG Plant i.e. Personnel, Technology and
Facilities. PTB decided that 12 elements are adequate to meet the standard requirements for
establishing PTBs PSM. The integration of these 12 elements to the three major components of the
Badak LNG Plant is as follows (see figure 2):

PT. BADAK CORPORATE CULTURE
AFTER
OFFICE HOURS
ACTIVITIES
MANAGEMENT
POLICY
BASIC
POLICY
TACTICAL
OBJECTIVE
STRATEGIC
OBJECTIVE
MISSION VISION
GOAL/
OBJECTIVE
Figure 1 : PT. Badak Corporate Culture

Technology Personnel

- Process Safety Information . - Training
- Process Hazard Analysis . - Contractor
- Operating Procedure . - Accident/Incident Investigation
- Safe Work Practices . - Emergency Planning and Response
- Management Of Change . - Audit
- Management of Change

Facilities

- Mechanical Integrity.
- Pre Start-up Safety Review.
- Management Of Change.



























The effect of the Management of Change on each component described, expresses PTBs
concern that the Management of change plays a key role and can not be separated from any
activities related to the 12 elements of the PTBs PSM.


2.1 - Steps of PSM Implementation

Implementation of PSM in the PTB facilities is an integrated effort, accomplished through the
following steps:




PROCESS
SAFETY
OPERATING
PROCEDURES
SAFETY
MANAGEMENT
OF CHANGE
PRE START-UP
SAFETY REVIEWS
MECHANICAL
INTEGRITY &
QUALITY
MANAGEMENT
OF CHANGE
PROCESS
HAZARD
TRAINING
EMERGENCY
PLANNING AND
MANAGEMENT
OF CHANGE
INCIDENT
INVESTIGATION
CONTRACTOR
AUDITING
BADAK
LN G

Figure 2 : Elements of PTB - PSM
2.1.1 - Introduction Phase

A PSM expert (consultant) was invited to evaluate the application of the PSM elements in
PTB in September 1992, followed by providing PSM training to the key personnel PTB. The
training was conducted in two ways i.e. sending PTB employees to attend overseas PSM
training and conferences, and in-house training for the Supervisors up to the Manager level.
Upon completion of this training, PSM was introduced to all employees through Safety Talks
and Fire & Safety Refresher courses.

2.1.2 - Commitment Phase

After the PSM concept was understood by our PTB employees, a commitment or policy as the
foundation of PSM program implementation was established,
- Develop PSM Manual Procedure no. PSM-01.
- Include PSM methodology in to the PTB Basic Safety Policy (see figure 3).





MAN



MONEY


MATERIAL



MACHINERY


METHOD



ENVIRONMENT









2.1.3 - Preparation Phase

All the elements of PSM, which were being applied within PTB were reviewed to determine
the need for further program development. PTB decided to apply 12 elements of the PSM
program, which were adopted from the combination of OSHA 29 CFR, 1910.119, API RP-750
and the DuPont Program as PTB consultant during conducting Introduction Phase of PSM.
The summary of PTB PSM Elements can be found in table 1 :
- SAFETY
INSPECTOR



- SCALE OF
PRIORITY



- QUALITY
ASSURANCE
SPECIFICATION


- FAIL SAFE
DESIGN



- P.S.M.
- CODES &
STANDARDS


- ENVIRONMENT
IS DEVELOPED
TO SUPPORT
THE COMPANY
BASIC
POLICY
TACTICAL
TARGET
STRATEGIC
TARGET
MISSION VISION
ZERO
ACCIDENT



LOW
SEVERITY
RATE


LOW FREQ.
RATE



EQUIPMENT
ZERO
FAILURE
SAFETY
HEALTH AS
OBJECTIVE
SAFETY
EXCELLENCE
ACHIEVEMENT
HEALTH,
SAFETY &
ENVIRONMENT
AL
PROTECTION
IS AN
INTEGRAL
PART OF THE
LIVES OF ALL
Figure 3 : PTB Safety Culture

OSHA 29 CFR 1910.119 API RP 750 PT. BADAK NGL. CO.
Employee Participation -- --
Process Hazards Analysis Process Hazard Analysis Process Hazard Analysis
Process Safety Information Process Safety Information Process Safety Information
Operating Procedures Operating Procedures Operating Procedures
Training Training Training
Contractors -- Contractors
Pre Start-Up Safety Review

Mechanical Integrity
Pre Start-Up Safety Review
Assuring the Quality and
Mechanical Integrity of Critical
Equipment
Pre Start-Up Safety Review

Mechanical Integrity and
Quality Assurance
Hot Work Permits Safe Work Permits Safe Work Permits
Management of Change Management of Change Management of Change
Incident Investigation Investigation of Process
Related Incidents
Incident Investigation
Emergency Planning and
Response
Emergency Response and
Control Audit of Process
Hazards Management
Emergency Planning and
Response
Compliance Safety Audits Systems Audit
-- General --




2.1.4 - Implementation Phase

Continual refinement of the PSM elements during this implementation phase must be done by
PTB as long as the company philosophy is not changed. Consequently, all Departments within
PTB must monitor and ensure that their activities meet and are consistent with the elements
of PTBs PSM.

2.1.5 - Monitoring Phase

Regular audits of PTBs PSM program will be conducted by a PSM expert, who is hired by the
share holders. The results of the audit are used to monitor and control PTB achievements in
implementing the PTBs PSM. Any deviation and inconsistency related to the elements of
PTBs PSM must be followed up with a corrective action to ensure that the PTB vision can be
achieved.

By following the above phases, the implementation of the PTBs PSM program can be
achieved smoothly. PTB personnels understanding of the PTB philosophy, which has been consistent
since the start of the company, supports this smooth implementation. An individual commitment to
follow the PSM elements is the key success factor to ensure that PSM can be implemented.
However, human nature can not guarantee that all personnel have the same commitment. Therefore,
clear and straight guidelines are required. Among the 12 elements of the PTBs PSM, the most difficult
part to be maintained and to be followed consistently is handling or implementing Management of
Change. As mentioned in the previous section that "Management of Change plays a key role and can
not be separated from any activities related to the 12 elements of the PTB-PSM", this is because
human nature adds complexity to the change process.
Table 1 : PTB PSM Elements

2.2 - Management of Change of PTB-PSM

The policy behind the Management of Change of PTB-PSM is "any changes without the
proper consideration of their impact can render all previous reviews and safe guards null and void. It
is necessary that written procedures shall be made to manage and control technological, physical
equipment and personnel changes that may effect the process". In order to meet the policy, a change
is defined as any addition, deletion, or alteration of process technology, personnel and facility outside
of established limits. The list of the categories of changes, which covers procedure, responsibility and
file location is developed to ensure that PTB personnel can follow any required action if necessary
(see table 2).



CATEGORY

RESPONSIBLE
DEPARTMENT
OTHER
DEPARTMENT
SUPPORT/
PARTICIPATION

FORM OF PARTICIPATION

FILE LOCATION

- Process Technology
Changes


- Operation
- Technical/Process
Eng.
- Development/
Technology


- Maintenance
- Loss Prevention
- Logistics
- Hazops Committee



- Implementation of Management of
Change/Process Technology
Changes.
- Review and evaluate any Process
Technology Changes

- Technology
- Operation
- Main Control Room
- Library ICS



- Facilities / Equipment
Changes

- Operation
- Technical/Facilities
Eng.
- Development/
Technology


- Project
- Maintenance
- Loss Prevention
- Logistics
- Hazops Committee


- Implementation of Management of
Change/Facilities Changes.
- Review and evaluated any
Facilities Changes

- Technology
- Operation
- Main Control Room
- Library ICS


- Personnel Changes

- All Departments

- Personnel

- Implementation of Management of
Change/Personnel Changes.
- Review and evaluate any
Personnel Changes


- All Departments
- Personnel

- Documentation

- Operation
- Technical

- Project
- ICS/Main Library

- Updated continually a change
occurs and revised when feasible.
- Accessible to operating personnel.

- Technical
- Operation
- Main Control Room
- Project/Drafting/
Library
- Main Library/ICS





2.2.1 - Process Technology Change

Process technology change is any addition, deletion or alteration of process technology such
as, production rates, materials, equipment, catalyst, operating condition. Some items which
include in the process technology change are as follows:

Process Chemicals
- Feedstock.
- Product Specifications.
- By Products / Waste Products.
- Maximum Intended Inventory
- Additives such as :
* Corrosion Inhibitors.
* Antifoulants.
* Antifoam Agents.
* Stabilizers.
* Dispersants.
Table 2 : Management of Change Responsibility of File
Location

Process Technology
- Process Flow Scheme.
- Capacity.
- Operating Parameters Such As :
* Temperature.
* Pressure.
* Level.
* Composition.
- Catalyst.
- Catalyst Condition Procedures.
- Catalyst Environmental Control.
- Operating Procedures.
- Base or Advance Level Control Philosophy.
- Control System Software.
- Emergency Depressurizing Capacity.
- PSV Design Basis.
- Flare System Design Basis.

2.2.2 - Facilities Change

Facilities changes is the addition, deletion, alteration of facilities (process equipment) such as
: construction material, equipment specification, piping pre arrangement, alarm and interlocks.
The following items are included in the facilities change :

- Equipment on Existing or New Facilities including :
* Tie-In.
* Removal of Equipment or Instrumentation from a Working Process.
* Demolition of Idle Equipment.
* Demolition of a Process Unit.

- Mechanical Design such as :
* Rotational or Reciprocating Speed.
* Materials Handling.
* Thickness.
* Gauges.

- Materials of Construction.
- Interlock System.
- Instrumentation.
- By pass Connections.
- Preventive Maintenance List.
- Hoses, Tubing, or Piping including :
* Hot Taps.
* Pipe Clamps.
* On Stream Leak Repair.

- Blinds, Safety Control Devices, or Electrical Circuits including Jumper Wires.
- Gasket Material of Type of Constructions.
- Relief Valves including :
* Set Pressure.
* Orifice Size.
* Bellows Material.

- Pumps & Compressors including :
* Seal Type.
* Configuration.
* Material.
* Fire Protection Equipment.
* Sewer System.

2.2.3 - Personnel Changes

Personnel changes are defined as : new employees, job rotation, restructuring of
organization, etc.

There are three stages (evaluation/study, safety review and documentation) are combined
into a single component called Project Flow of Work as the detail working procedure and guideline
for implementing the Management of Change, especially to handle process technology and facilities
changes. This procedure is called the PT. Badak Policy Procedure Guide (PP Guide) which consists
of two parts i.e Project Procedures and Hazops & Hazan.

2.3 - Project Procedures PP Guide

The Project Procedure PP Guide covers the company to encourage PT. Badak employees
and engineers to follow a standard administrative approach when issuing a Request for Engineering
Service (RES) and processing the RES implementation of the required solution as the initial step of
the Project Flow of Work.

This procedure applies to all Departments dealing with RES : Facilities Engineering,
Inspection, Process Engineering Sections of Technical Department, Project Engineering Section of
Project Department, Safety Engineering & Environmental Control Section of Loss Prevention
Department and Technology Section for preparing a conceptual study. Process Engineering,
Facilities Engineering and Project Engineering Section for issuing simple detailed designs, Facilities
Engineering and Project Engineering Section for issuing complete detailed designs.

Any employee may create a Request for Engineering Service (RES) when he sees a problem
which may require technical investigation or needs engineering assistance. The content of the RES
includes a background of the problem and a request to find the solution. The reason for the concern
and justification for writing a RES are:

* Plant safety,
* Plant improvement,
* Plant modification,
* Non-plant related improvement and
* Company contribution to local government.

After writing the RES, the originator shall obtain the approval of his supervisor and his
department manager. Then the RES is submitted to the custodian for the custodian managers
approval. The custodian manager then submits the plant related RES to the Technical Manager, or to
the Project Department Manager for a non-plant related RES/civil work job, or to the Loss Prevention
Manager for a safety related RES.

For Plant related projects, the Technical Manager will check whether the RES is acceptable.
He will check with the originator if required. If it is not acceptable, it shall be rejected and sent back to
the custodian manager. If it is acceptable, the Technical Manager will discuss internally and select
the proper department or section for the study. If the RES is related to Fire Safety and Environmental
aspects, it shall be sent to Loss Prevention Manager. After reviewing the RES the Technical
Manager or Loss Prevention Manager will modify the priority of the RES, if required, and distribute it
to the appropriate section, based on the result of Technical or Loss Prevention Department
discussion. If there are any additional questions on the RES, the assigned Section Head clarifies
them to the Technical Manager or Loss Prevention Manager. Non plant related projects will be
directly handled by Project Engineering Section.

The Section Head shall obtain a project number for the RES from the project administrative
assistant in the Project Engineering Section and assign an engineer within the section to handle the
RES
FROM ORIGINATOR
RES APPROVED BY
CUSTODIAN
PROJECT FLOW START
(NEXT PAGE
RES TO TECHNICAL, LOSS
PREVENTION, OR
TECHNOLOGY
SECTION HEAD ASSIGNS
ENGINEER AND OBTAINS
PROJECT NUMBER
RES
PROJECT ENG. SECTION
DOES THE RES DEAL
WITH PLANT
RELATED PROBLEM
ENGINERING ASSISTANT
ASSIGNS PROJECT NUMBER
RES REVIEW BY
TECHNICAL MANAGEMENT
RES. The Section Head will then distribute the RES to the appropriate parties listed on the lower part
of the RES. To proceed the project task, the engineer must look at the priority of the RES and always
execute the RES with the higher priority first, and follow the project flow chart (see figure 4) for
reference. The assigned engineer is responsible for the project from concept through execution as
well as for keeping the project file for the project organized in a comprehensive and timely manner.






















RES
REJECTED AND CLOSED
NO
YES
Figure 4 : PTB RES and Project Flow Chart
IS A JOB STUDY
REQUIRED


















RES
ASSIGNED TO ENGINEER
IF A SIMPLE PROJECT,
EMERGENCY JOB OR <US$
2,000 PROCEED WITH A
MEMO # 1-S FORM
REVISE MEMO # 11
AS REQUIRED
A
FROM PREVIOUS PAGE
IS MEMO # 11-A
APPROVED
DOES THE MEMO #
11 RECOMMEND AN
ENGINEERING
MODIFICATION ?
CAN PROJECT BE
DONE WITH # 1-S
FORM ?
DOES THE PROJECT
REQUIRE
ENGINEERING BY
OTHER GROUPS ?
PERFORM STUDY AND
DEVELOP MEMO # 11
SUBMIT MEMO # 11 WITH
MEMO # 11-A FOR
CUSTODIAN APPROVAL
PREPARE MEMO #
9 AND TRANSFER
NO
NO
NO
NO
NO
YES
YES
YES
YES
YES
CUSTODIAN TO PREPARE
AFE
PREPARE COST
ESTIMATE SUBMIT
MEMO # 3 TO CUSTODIAN
Figure 4 : PTB RES and Project Flow Chart
AFE (MEMO # 3)
APPROVED ?


MEMO # 7
APPROVED ?
HAZOPS
IF PROJECT CAN BE
IMPLEMENTED WITH
A MEMO # 1-S FORM
CORRECT THE SAFETY ITEMS
DESIGN - CALCULATION - DRAWINGS
NO
YES
YES
NO
DRAWINGS PFD,
P&ID, ISO,
STRUCTURAL,
FOUNDATION, ETC.
WELDING
PROCEDURE
MEMO # 4
BILL OF
MATERIAL
MEMO # 8
SCOPE
OF
WORK
MEMO # 1 MEMO # 1-S
COMPLETE ENGINEERING OR SIMPLE PROJECT
PACKAGE PACKAGE
REVISE AS
REQUIRED
INSPECTION TO
VERIFY QUALITY
REVIEW WITH
CUSTODIAN
REVIEW WITH
MAINTENANCE
SUBMIT MEMO # 2
MATL AVAILABILITY
REVIEW WITH
PROJECT
WHSE
PROJECT EXECUTION
APPROVED
YES
NO
COMMISSIONING PROCEDURES
DISTRIBUTE MEMO # 5 FOR
PROJECT COMPLETION
AS BUILT DWGS. COMPLETE
PERMANENT FILES UPDATED
FIELD WORK COMPLETE
PROJECT CRITIQUE
ISSUE JOB CLOSURE MEMO # 5
PROBLEM
SOLVED
TO POINT A
PREVIOUS PAGE
FURTHER STUDY
OR REVIEW
NO
YES
Figure 4 : PTB RES and Project Flow Chart
2.4 - Hazops and Hazan PP Guide

PT. Badak wishes to review plant and community related projects including tie-in jobs, studies
and maintenance job preparations, or other changes including operating procedures that impact the
safety and reliability of the Badak LNG/LPG Plant and its Community, from a hazards and operability
(Hazops) point of view in order to eliminate possible failures when the projects/studies and
procedures are implemented. The review includes Hazard Analysis (Hazan), which is used to quantify
the risk/consequences if the job execution fails. Both Hazops and Hazan can be conducted
independently or combined depending on the requirement. In the case of a combined review, Hazan
will follow Hazops based on Hazops recommendation. This is parallel with the mission of PT. Badak
to maintain a high standard on the safety and reliability of the Badak LNG/LPG Plant and Community.

To ensure that the Hazops review is consistently implemented, a body (committee) in the
PT. Badak organization is established, called Hazops Committee (HC). The review of Hazan is done
by the Loss Prevention Department.

2.4.1 - Application

- All plant related projects including tie-in jobs or studies within PT. Badak which directly have
a significant affect on the safety and reliability of the Badak LNG/LPG plant.
- All plant repairs related to maintenance job preparations within PT. Badak which have a
significant effect on the safety and reliability of the Badak LNG/LPG plant.
- Other changes including operating procedures that impact to process safety and reliability of
the Badak LNG/LPG plant.
- Other PT. Badak facilities outside the plant which have been decided to be reviewed by
Management from a hazard, operability, and safety point of view.
- Outside projects/studies which will be implemented in the Badak LNG/LPG plant.

2.4.2 - Hazops and Hazan Procedures

Hazops Procedure
- Each project/study or a change is sent to the Hazops Committee Chairman (HCC) using
memo # 7 or a regular memo complete with a conceptual study/design intent/sequential
procedure, detailed drawings, and the result of the department Hazops review (see figure 5).
- After receipt of the package, HCC will decide, whether a meeting with the project
engineer/Hazops requestor and the Hazops Committee Members (HCM) is required. Calling
a Hazops Committee meeting is the prerogative of management and HCC. Requests for a
meeting by others can also be made to the chairman.
- For simple projects, studies and other changes, the Hazops review is done by the secretary
or the HCM and approved by HCC.
- For big or complicated projects, studies, and other changes within the existing facilities, a
full Hazops Committee meeting is required. Depending on the requirements, Management or
expert (s) may be invited to attend this meeting for their advice. In the meeting the project
engineer or the Hazops requestor should explain the proposed project, study or other
changes to the committee, and all committee members are free to raise questions related to
the safety and operability stand-point.
For a big project which is not executed by PT. Badak but will be implemented in the plant, or
for the existing plant facilities which need to be reviewed from the hazard and operability
point of view, a full time hazops study with a full team from various disciplines will be
required for a duration of more than 15 working days. In this case a special team called
Temporary Hazops Committee, is formed.
- During the meeting, the Hazops Committee identifies/assesses the potential hazards, and
they will recommend to the project engineers/Hazops requestors to accommodate their
findings into their studies.

- In addition to HCC approval for the Hazops of the maintenance job preparation or other
changes including operating procedure, the approved Hazops document should be
acknowledged by Operation Manager, Plant Technical Manager, Maintenance Manager and
Loss Prevention Manager prior to the execution of the job.
- If the HCC considers that the request for Hazops for a projects, studies and maintenance job
preparation is not appropriate, the HCC will return the memo # 7 or issue a response memo
to the project engineer with the note Hazops is not required.
- Starting from the receipt of the package, HC will complete their review and comments in a
reasonable time but not longer than 15 working days. For every big project, the duration of
Hazops review will be defined prior to the start of the work.

Hazan Procedure
- PHC or/and Division Manager will recommend to the Loss Prevention Department to conduct
a Hazan.
- Loss Prevention Department proposes the action plans to cover an unexpected Hazard
condition.
- The results of the Hazan should be attached to the Hazops result. But if Hazan is done
independently, the report can also be issued independently to the requestor.


ENGINEERING STANDARD MEMO # 7

TO : HAZOPS Committee Date :
FROM : __________________________________ d d m m y y
SUBJECT : HAZOPS REVIEW REQUEST

JOB NUMBER :

JOB TITLE : _______________________________________________________________________
ENGINEER : _____________________________GROUP HEAD : __________________________
SUMMARY OF SCOPE : __________________________________________________________________
Attached to this memo please find the following :

Design Intent (always include) Spec. Sheets :

Conceptual Design Drawings :

Other :

Please review these attachments from a HAZOPS standpoint and indicate the Committees decision by
completing the form below and returning it to us.

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Sub-Committee on ________________
Full Committee Meeting held on ___________________

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Figure # 5

Consistent application of these procedures as a part of Management of Change of the PTBs
PSM has contributed to the achievement of the current PTB Safety Record of more than 50 million
working hours without a lost time accident.


3 - CONCLUSIONS

1. The corporate culture of PTB is to strengthen a healthy interaction and mutual understanding
between management and the employees.

2. The 12 elements of Process Safety Management are adequate to meet the standard
requirements of PTBs PSM program.

3. Individual commitment to follow the PSM elements is the key success factor to ensure that
PSM can be implemented.

4. Management of Change is considered the most important element of PSM in the support of
the plant operations of the Badak LNG Plant.

5. Application of PTBs PSM contributes to the achievement of the current PTB safety record of
over 50 million working hours without a lost time accident.


REFERENCES

1. PT. Badak NGL, Process Safety Management Manual.
2. PT. Badak NGL, Policy/Procedure Guide 0304-01.
3. PT. Badak NGL, Policy/Procedure Guide 0305-01.