HSE Auditing
Authors: van Herwaarden A.J.F. , Sykes R.M. 
Published: December 2007

Shell companies have their own separate identity. In this paper the collective expressions 'Shell' and 'Group' and 'Royal Dutch/Shell Group of Companies' may be used for convenience where reference is made to the companies of the Royal Dutch/Shell Group in general Those expressions are also used where no useful purpose is served by identifying the particular company or companies.

Shell International Exploration and Production (SIEP) commenced a programme of Health Safety and Environmental (HSE) auditing in its Operating Companies (Opcos) in the late 1970s. Audits in the initial years focused on safety aspects with environmental and occupational aspects being introduced as the process matured. Part of the audit programme is performed by SIEP auditors, external to the Opcos. The level of SIEP-led audit activity increased linearly until the late 1980s, since when a level of around 40 audits per year has been maintained in roughly as many companies. For the last 15 years each annual programme has included structured audits of all facets of EP operations.

The frequency and duration of these audits have the principle objective of auditing all HSE critical processes of each Opco's activity, within each five-year cycle. Durations vary from 8-10 days with a 4 person team to 18-20 days with a 6-8 person team.

Each audit returns a satisfactory or unsatisfactory rating based on analysis of the effectiveness of the so-called eleven principles of Enhanced Safety Management (ESM) required to be applied throughout the Group.

Independence is maintained by the SIEP audit leader, who carries ultimate responsibility for the content and wording of each report, where necessary backed-up by senior management in SIEP.

These SIEP-led audits have been successful in the following areas:–Provision of early warning in areas where facilities' integrity or HSE management was likely to be compromised.–Aiding the establishment of an internal HSE auditing process in many Opcos.–Training, through participation in audits, not only auditors, but also prospective line managers m the effective management of HSE.

With the recent introduction of HSE Management Systems (HSE-MS) in many Opcos, auditing is now in the process of controlled evolution from ESM to HSE-MS based. The evolutionary process includes restructuring the standard report contents list and questionnaires, reviewing the rating methodology and the production of revised guidelines. Full HSE-MS based auditing, scheduled to be achieved by end 1997, is expected to lead to further improvement and structure in Opco internal auditing, with an eventual reduction in the need for audits led by SIEP staff. The ultimate level of SIEP-led auditing has not been established and will depend on the achievements by, and confidence in, the Opcos.

Introduction

SIEP activities are conducted in 37 countries around the world through the Opcos. Each Opco is individually responsible for its business, but SIEP seeks through its policy, which requires foremost attention for health and safety of employees and other persons, and conservation of the environment, the implementation of common standards by the Opcos, where possible. P. 389