DRAFT TEXT for XD LETTER 13Th May,2001

PETROLEUM DEVELOPMENT OMAN L.L.C.

18 July, 2001

To: Contractor General Managers, PDO Contract Holders

Subject : Vehicle Maintenance - Compliance With Procedures

While a considerable part of the attention given to Road Safety activities within PDO and Contractors is justifiably directed towards drivers, PDO remains concerned about the maintenance and roadworthiness of vehicles, light and heavy, which are working in support of our operations.

As a reflection of this concern the Road Safety Monitoring Teams (RSMT) have recently been increased from two to three. In addition to carrying out random roadside checks on individual vehicles, these RSMT teams are also available to carry out audits in an advisory capacity (on request of Contract Holder via CSM/51) of vehicle maintenance systems and vehicle workshops; they can also advise on preventing and correcting vehicle deficiencies.

It is evident from the number of “A” class defects (list attached) still being reported by the RSMT that a significant proportion of vehicles are still not being maintained to the required standards as listed in the Road Worthiness Assurance (RAS) Standards within the Transport Standards Manual. (Please note that “A” class defects were re-defined as from the start of 2001 to focus solely on serious vehicle safety faults).

The findings indicate that while some companies strive to maintain standards to annual RAS inspection quality, others clearly do not. Monthly maintenance/safety checks in many companies are either (a) not being carried out, or (b) carried out to insufficient standards. There are also companies who appear to ignore not only PDO basic requirements but also ROP and other Governmental safety rules and regulations. The RAS requirements and inspections have a specific purpose - to ensure that vehicle safety standards are met (based on the UK’s MOT standards).

Paralleling our concerns ref. the number of ” A” defects is the insufficient follow up and close-out ratio of such defects by the concerned vehicle owners. In addition to a copy of the checklist given to the driver, the RSMT also issues a copy containing a close out slip ( i.e. confirming that action has been taken to rectify the noted faults) to be returned to the local RSMT upon close out of whatever rectification

action is required. There is a generally low level of response in addressing the RSMT findings, and in particular a low level of returning the close out slip.

A third area of focus is the procedural non-adherence noted by the Teams, i.e. Category “D” on the attached checklist, such as no Safe Journey Management Plan, no RAS sticker, no driver permit, or no Health certificate for potable water tanker drivers. Further information regarding the RSMT findings are available on the web at http://sww1.pdo.shell.om/dept/cd/csm/dts/

In order to improve the situation outlined above, I want to inform you that as part of the joint PDO and Contractor ‘Drive to Survive’ activities, we shall be adopting a policy of zero tolerance with regard to repeated “A” class defects (and non close outs) from 01 August 2001.

Action to be taken against repeat offenders may include :  removal of the vehicle from PDO operations until presented to the RSMT for re- inspection  removal of transport supervisory staff from contracts (those who apparently do not have sufficient competency to manage transport operations or have insufficient knowledge of basic road safety procedures)  full implementation of monetary deductions in those contracts which have the relevant clauses, for breaches of HSE, in this instance for operating unsafe vehicles or breaches of procedures  suspension of contractors

Our road safety statistics for last year and the first half of 2001 are very disturbing and the upward trend over this period is unacceptable. We need to do all we can to markedly reduce the number of incidents and RTA’s. Hence I request that you review in your respective companies / operations the adherence to agreed vehicle maintenance standards, ensure timely close out of reported defects, and strictly adhere to basic safety procedures such as Journey Management, Driver permits, RAS inspections etc.

Together we can make a difference – and save lives !

Jeroen M. Peters PDO Exploration Director (XD) Champion ‘Drive to Survive’ team

Attachment: RSMT Checklist