Circular No. 40/2018/TT-BCT dated October 30, 2018 of the Ministry of Industry and Trade prescribing formulation and contents of documents on management of safety for petroleum operations

THE MINISTRY OF INDUSTRY AND TRADE

Circular No. 40/2018/TT-BCT dated October 30, 2018 of the Ministry of Industry and Tradeprescribing formulation and contents of documents on management of safety for petroleum operations

Pursuant to the Law on Promulgation of Legislative Documents No. 80/2015/QH13;

Pursuant to the Law on Petroleum dated December 18, 2013;

Pursuant to the Government s Decree No. 98/2017/ND-CP dated August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 95/2015/ND-CP dated October 16, 2015 elaborating on certain articles of the Law on Petroleum;

Pursuant to the Government’s Decree No. 87/2018/ND-CP dated June 15, 2018 on gas business;

Pursuant to the Government’s Decree No. 13/2011/ND-CP dated February 11, 2011 on security for onshore petroleum facilities;

Pursuant to the Prime Minister’s Decision No. 04/2015/QD-TTg dated January 20, 2015 on management of safety for petroleum operations;

The Minister of Industry and Trade hereby promulgates the Circular prescribing formulation and contents of documents on management of safety for petroleum operations.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides for the formulation and contents of documents on management of safety for petroleum operations.

Article 2. Subjects of application

This Circular shall apply to organizations, individuals and regulatory authorities relating to petroleum operations on dry land or territorial waters of the Socialist Republic of Vietnam.

Article 3. Definition

For the purposes of this Circular, terms used herein shall be construed as follows:

1. Petroleum operation refers to the following activities:

a) Prospecting, exploration and development of oil and gas fields, clearance of petroleum facilities.

b) Construction, installation and operation of petroleum exploitation, production, refining, petrochemical, treatment, processing, petroleum product storage, transmission and distribution infrastructure facilities. 

c) Engineering services directly involved in activities specified in point a, b of this clause.

2. Individual risk per annum (IRPA) refers to the annual average value of risk of death that a person may face at workplace.

3. Individual risk (IR) refers to the estimated probability of risk that a person may face in case of an incident or accident.  It is represented by two quantities including the individual risk per annum and the fatal accidental rate.

4. Location Specific Individual Risk (LSIR) refers to the risk that a person may face at a particular work location due to impacts resulting from technological systems in operation at a work site.

5. Group risk refers to the risk that a facility causes for a group of employees working there or a group of persons not working but present within the vicinity of the facility. 

6. Potential Loss of Life (PLL) refers to the estimated number of persons that may be dead (per year) due to any incident/accident.  PLL is used for determining and classifying sources of risks which are principal or cause general impacts or social risks, and helps measurement of changes in a risk when there is any change in operational activities and in equipment/appliances during the life span of a facility. 

7. Risk matrix refers to the two-dimensional matrix, including the incident/problem frequency (IPF) and the intensity of consequences arising in case that accident/problem occurs (IPI).

Article 4. Time of formulation of safety management documents

1. A safety management program shall be developed:

a) Before construction and installation.

b) Before testing and commissioning.

c) Before alteration or change of capacity, technology, clearance of a work site after the completed production or end of a project, change in safety policies and safety management systems.

2. A risk assessment report shall be prepared:

a) While working on the fundamental design or the technical design.

b) Before construction and installation.

c) Before testing, commissioning, maintenance and repair.

c) Before alteration or change of capacity, technology, clearance of a work site after the completed production or end of a project, change in safety policies and safety management systems.

dd) Updated every 5 years.

3. An emergency response plan shall be prepared:

a) Before construction and installation.

b) Before testing and commissioning.

c) Before alteration or change of capacity, technology, clearance of a work site after the completed production or end of a project, change in safety policies and safety management systems.

Article 5. General information required in the overview of a project or construction work in safety management documents

1. Name, capacity, main products and input materials.

2. Address of the construction work or project, topographical map, geographical conditions relating to safety and environment.

3. Address of office buildings, amenities, utilities, safety and firefighting systems.

4. Floor plan of the project or construction work, safety corridor and distance for installation of technological equipment, auxiliary appliances and items the need to be protected in the project or construction work.

5. Basic technology process, main chemicals and fluids related to safety, fire, explosion and environment.

6. Activities relating to stocking, dispatch, receipt and transportation.

7. Information about personnel working for the project: Number of employees, distribution of employees working at different areas and working time frame, etc.

8. Emergency stop, safety assurance and fire safety facilities and equipment.

Chapter II

SAFETY MANAGEMENT PROGRAM

Article 6. Safety policies and objectives

1. Introduction to the Safety – Health – Environmental management system and programs intended for petroleum operations at a project or construction work.

2. Safety – Health – Environmental management policies and objectives for different activities, including:

a) Safety management: The number of accidents or incidents during a year or time length of the safety management activity (if such activity lasts less than 01 year); period of suspension of work due to any accident/incident (Lost Time Injury - LTI); total of incidents/accidents that have been recorded (Total Recordable Incident Frequency Rate - TRIFR).   

b) Environmental management: Commitments to preventing environmental occurrences; minimization of hazardous wastes.

c) Management system: Safety – Health – Environmental management plans and procedures; review of effectiveness in the Safety - Health - Environmental management activity; incident/accident investigation and reporting.

3. Policies and objectives must correspond to the capability of the involved organization, individual, laws and regulations.

4. Commitments to implementing measures must be made to attain stated objectives.

Article 7. Organization of safety tasks and delegation of authority to perform safety tasks

1. Organizational chart of personnel related to safety tasks, including the occupational hygiene and safety department, the healthcare department, the occupational hygiene and safety council, as prescribed in regulations in force.

2. Assigning responsibilities for performing duties to departments and individuals related to safety management activities.

3. Reporting channels, including reporting to state regulatory authorities as prescribed in regulations in force and internal reporting.

Article 8. Safety training programs; requirements concerning competence, qualification and experience of employees

1. Detailed programs for training in safety and emergency response for employees and occupational positions under regulations in force and particular requirements in the petroleum industry, including:

a) Sectors and employees that need to be trained in safety management activities.

b) Contents and time of the training designed for specific trainees.

c) Certificates and credentials awarded after completion of a training course.

2. Requirements concerning competence, qualification and experience of specific work positions of employees in accordance with regulations in force.

Article 9. Assessment of compliance with Safety – Health – Environment legislation, including the following contents:

1. Report on assessment of compliance with Safety – Health – Environment legislation, including the following contents:

a) Articles and clauses in legislative documents and international treaties of which Vietnam is a member, to which a project or construction work is bound.

b) Summary of statutory contents.

c) Response actions/plans.

d) Documents evidencing compliance.

dd) Commencement date.

e) Performance evaluation: Satisfactory or Not Satisfactory. In case of being Not Satisfactory, analysis of causes, remedial measures and completion deadline must be recommended.

2. The list of national technical regulations, national standards, safety regulations and other standards conforming to generally-accepted international petroleum industry practices in the Safety - Health – Environment sector to be applied at a project or construction work.

3. The list of procedures and regulations on operation, handling of emergencies, maintenance of a construction work, machinery and equipment, including:

a) Name and date of issuance of regulations and procedures.

b) Names, symbols, codes and updating dates of regulations and procedures.

4. List of licenses, technical safety and quality certificates, including the following information:

a) Name of the license or certificate.

b) Issuance and effective date of the license or certificate.

Article 10. Contractor management

Contractor management activities must ensure controllability of safety, health and environmental issues:

1. Regulations and procedures for management and control of safety, health and environment issues of the contractor.

2. Competence in performing safety, health and environmental management activities by the contractor must be controlled and ensure relevance to the safety management system of an organization or individual involved in the petroleum industry.

3. Safety arrangements and agreements between the investor in a project on a construction work and the contractor upon implementation of contractual duties. 

Chapter III

RISK ASSESSMENT REPORT

Article 11. Determination of reporting purposes and scope

1. A report shall be aimed at assessing and measuring risks arising from activities performed by an organization or individual in order to effectively control and recommend measures to minimize risks arising during the period from the design stage to the stage of construction, testing, commissioning and cancellation of a construction work.  

2. A report shall cover:

a) Quantitative and qualitative assessment of risks to humans.

b) Comparison of risks from activities with the acceptable level of risk.

c) Recommended measures to minimize risks.

Article 12. Acceptable risk level

1. The acceptable risk level determined prior to risk analysis shall be the basis for the process of assessment and minimization of risks.

2. The acceptable risk level used for the quantitative assessment of risks arising in petroleum operations shall be subject to the Circular No. 50/2012/TT-BCT dated December 28, 2012 of the Minister of Industry and Trade releasing the national technical regulation on the acceptable risk level used in the quantitative assessment of risks arising by performing petroleum, gas and oil, chemical and thermal power operations QCVN 11:2012/BCT.  

3. The acceptable risk level (specific) to an organization or individual may be applied on conditions that it is not greater than the risk level defined in the QCVN 11:2012/BCT.

Article 13. Risk assessment methodology

1. Qualitative risk assessment

2. Quantitative risk assessment

Article 14. Hazard identification

1. Hazard identification refers to the determination of potential hazards that may be caused by petroleum operations, harm humans, property and environment.

2. Potential hazards may arise from all of construction items, technological systems and activities in the petroleum industry.

3. Organizations and individuals must present hazards as a basis for quantitative and qualitative risk assessment.

Article 15. Qualitative risk assessment

1. Establish the risk matrix for analysis and measurement of the level of risk that may cause identified hazards.  According to safety policies, objectives and particular characteristics of petroleum operations, both dimensions of the risk matrix shall contain multiple risk levels, each of which is not less than 3. Details shall be given in the Appendix II hereof. 

2. The qualitative risk assessment result shall be represented in the form of the classification chart of risk levels, which lists down all of identifiable hazards, primary risk levels, risk control and minimization measures and remaining risk levels after application of risk relief measures. A risk level can be identified from the risk matrix.

3. The sample of the classification chart of risk levels shall be given in the Appendix III hereto.

Article 16. Quantitative risk assessment

1. Quantitative risk assessment requirements

a) Qualitative risk assessment procedures shall be implemented according to QCVN 11:2012/BCT.

b) This assessment must be carried out by using the dedicated software which is copyrighted, is designed to calculate the frequency rate, create the model of performance and individual risk levels.

c) Individual risk levels must be compared with the acceptable risk level prescribed in Article 12 hereof.

2. Review and selection of hazards subject to the quantitative risk assessment.

3. Frequency rate analysis

a) Identifying hazard-specific original frequency data, including respective data sources, technology stages and indexing factors;

b) Results of calculation of the frequency rate of each selected hazard.

4. Consequence model

a) Analyzed consequence model formats and associated input data.

b) Consequence modeling results presented in the form of charts and images depicting respective hazards caused in specific technology phases.    

5. Calculation of risk levels

6. Results of the quantitative assessment of risks, including individual risk and group risk:

a) Individual risk: The result of the quantitative assessment of the individual risk shall be determined by looking at IRPA.

b) Group risk: The result of the quantitative assessment of the group risk shall be determined by looking at the likelihood of loss of human life.

c) Calculating the highest individual risk level and the average individual risk level.

d) Comparing the measurable risk level with the acceptable risk level provided in Article 12 hereof.

Article 17. Risk minimization measures

Risk minimization measures shall be comprised of:

1. Measure to minimize the frequency rate of incident or accident.

2. Consequence mitigation measures:

a) Consequence mitigation measure relating to design, passive load bearing and fire protection capacity of a structure.

b) Consequence mitigation measure relating to the safety and support system, and the passive fire protection system.

c) Consequence mitigation measure relating to the standby equipment and personnel system in case of emergency.

d) Other measures.

3. The risk level determined after application of risk minimization measures must be corresponding to the acceptable risk level.

Article 18. Conclusion and recommendation

1. Conclusion

a) Making a summary of important results gained by the analysis and assessment of risks, and the highest risk level used as a benchmark.

b) Preparing the report on results of implementation of recommendations given in risk assessment reports of previous projects or construction works (if any).  

2. Recommendations

Based on the assessment results, recommendations about technical and management solutions aimed at dealing with unsolved issues in order to minimize risks and promote efficiency of managerial effectiveness must be offered.

Chapter IV

EMERGENCY RESPONSE PLAN

Article 19. Identification and classification of emergency situations

Based on the assessment of hazards, all of potential emergency situations shall be identified. Based on the competence, scale and complexity of each project or construction work, emergency situations shall be classified.

1. Primary emergency situation refers to the situation in which an incident occurs on a small scale without causing any direct threats to human life and existence of a part of a facility. This situation shall be handled and mitigated by on-site personnel.

2. Secondary emergency situation refers to the situation in which an incident occurs on an average scale and may cause direct threats to human life and existence of a part of a facility.  This situation shall be handled and mitigated by the internal response staff of an organization under the command of the Commanding Committee for emergency response, maybe by the internal response staff administered by another organization and any involved local authority.  

3. Tertiary emergency situation refers to the situation in which an incident occurs on a large scale, causing serious danger to humans, potential damage to a facility and significant impact on environment.  This situation shall be handled and mitigated by the national-, ministry- and sectoral administration-level professional, or maybe foreign, forces.

Article 20. Personnel organization and delegation of responsibilities, responsibilities arising in case of emergency

1. Organizational diagrams of emergency response specific to emergency situations must describe members of the response team ensuring effective emergency response tasks and contact between main position holders in each response team and between response teams.

2. Specific responsibilities of each department and member belonging to the organization structure of an emergency response team must be described.

Article 21. Reporting system in case of incident, accident or dangerous situations

1. Notification and reporting procedures

The document must describe requirements concerning contents of notification procedures from the time of discovery of incident to the time of issuance of notification to forces participating in response tasks and the force in charge of directing/administering response activities, response support staff, partners, contractors and professional rescue teams under the control of a local authority upon request, and international response bodies.

2. Internal notification

The following contents shall be required:

a) Methods for sending the notification to the Commanding Committee for emergency response, response forces, departments/divisions and response support staff.

b) Contents of the notification (describing the incident, type of the emergency, occurrence position and time, degree of loss/number of injured persons, status, activities already subject to remedies and demands for support).

c) Communications channels (including telephone, walkie-talkie, alarming sound and fax/email, etc.).

d) Persons authorized to issue emergency notifications.

3. Outward emergency notification

The following contents shall be required:

a) Regulations on notification forms, responsible or authorized persons.

b) Procedures for and contents of notification issued to host entities, concerned competent bodies, partners, response support organization, press/communications, family relatives of victims, etc.

4. Preparation of emergency reports

The document must include contents of regulations on preparation of incident/accident reports, sample internal incident/accident reports and submission thereof to host entities and competent authorities, and to communications/press agencies, etc. 

Article 22. Procedures for response to emergency situations

1. List of emergency response procedures

a) Compiling the list of emergency response procedures applied to projects or construction works which are relevant to emergency situations.  Each procedure must include code, symbol, issuance date, revision date (if any) and level of the issuing authority.

b) If involved parties have their own response procedures applied to the same emergency situation, it shall be necessary to clarify which conditions for application of an emergency response procedure of a party.

c) Listing down documents on cooperation between partners on emergency response (if any).

2. Specific emergency response procedure

This procedure must describe the steps in response to a typical situation such as fire, explosion, oil/chemical spill, gas leak, etc. which are relevant to related petroleum operations. Citations shall include at least:

a) Flowchart describing the response process.

b) Description of the response process.

c) Assignment of functions and responsibilities of each individual in case of emergency.

d) Communications and reporting system.

Article 23. Emergency response resources

1. The Commanding Committee in charge of administering emergency response activities.

a) Contact address of the emergency response office of the Commanding Committee.

b) List of equipment and appliances intended for emergency response activities which are under the control of the emergency response office or the Commanding Committee.

2. Internal resources intended for emergency response and exit activities.

The list must contain names, quantity, types, functions and installation locations, etc. of equipment installed inside a project/plant in order to serve the needs of emergency response activities.  The list should be composed of the full description of situations in which use of these equipment items is allowed.

a) Response, rescue and exit plans, muster stations and control centers.

Maps, images and description statements must be used to describe the followings:

- Rescue and exit way.

- Areas used as muster stations inside a facility.

- On-the-scene control center.

- Maps, images and description statements should clearly indicate installations of emergency equipment and appliances at rescue and exit doors, muster stations and on-the-scene control center.

3. Externally mobilized resources

The comprehensive description of essential resources externally mobilized in case of incident or accident shall include:

a) Agreements on mutual support with adjacent construction works and competent authorities.

b) Resources agreed upon in contracts (example: technical, first aid, medical treatment and evacuation services).

c) List describing names, quantity, types and functions of outsourced safety equipment and appliances used for performing emergency response activities.

Article 24. Address used for emergency contact with internal departments and reporting to relevant regulatory authorities

1. Internal emergency contact address

2. Address used for the emergency contact with concerned regulatory authorities.

3. Address used for the emergency contact with response support units.

4. Sample internal reports and sample reports submitted to regulatory authorities.

Article 25. Emergency response training and drills

1. Training

a) General regulations on theoretical and practical emergency response training.

b) Contents of emergency response training relevant to each group of employees and tasks.

c) Training schedule and program.

2. Drills or exercises

a) Forms of drills or exercises: Tabletop exercise and drill.

b) Drill or exercise plan.

3. Tabletop exercise must be held before commencement of petroleum operations.

4. Drill or exercise plan must clearly specify types of situations, contents, frequency rate, eligible participants, time and venue and external bodies invited to take part in the drill or exercise.

Article 26. Plan for restoration of operations after an incident or accident

The plan for restoration of operations of a facility shall include information about the investigation and evaluation of causes and consequences as a basis for retrieval and promotion of the safety level of a facility.

The following main contents shall be required:

1. Processes of investigation and evaluation of causes and consequences of an incident or accident.

2. The plan for improvement of measures to prevent, respond to emergencies and enhance the safety level of a facility.

Chapter V

IMPLEMENTARY RESPONSIBILITIES

Article 27. Responsibilities of the Industrial Safety Techniques and Environment Agency

1. The Minister of Industry and Trade shall authorize the Director of the Industrial Safety Techniques and Environment Agency to give his/her endorsement for safety management documents of organizations and individuals involved in petroleum operations.

2. Provide guidance on the implementation of this Circular.

3. Conduct the inspection, examination, and handle any violations, complaints and denunciations regarding management of safety for petroleum operations, under its jurisdiction. 

Article 28. Responsibilities of the Departments of Industry and Trade in provinces where petroleum operations take place

1. Preside over the assessment and approval of safety management documents of petroleum industry organizations and individuals developing projects or construction works specified in the Appendix I hereof.

2. Preside over and cooperate with concerned entities in cities or provinces in carrying out the inspection, examination of, handling of any complaints, denunciations and imposition of actions against any violations arising from implementation of tasks and regulations specified in documents on management of safety for petroleum operations within their remit under legislative regulations.

Article 29. Responsibilities of organizations and individuals involved in petroleum operations

1. Those organizations or individuals involved in petroleum operations as prescribed in clause 1 of Article 3 shall take responsibility for developing safety management documents; bear legal liability for accuracy of information, documents and results obtained during the process of formulation of safety management documents; assume responsibility to implement measures and plans for assurance of safety for projects or construction works; conduct emergency response drills or exercises according to plans specified in safety management documents.

2. Responsibilities of consulting organizations

Consulting organizations shall be held legal liability for results gained from the analysis, assessment and measurement of contents and data included in safety management documents developed on their own.

Article 30. Implementation provision

1. This Circular takes effect on December 14, 2018.

2. Affiliates of Ministries and organizations or individuals concerned shall be responsible for implementation of this Circular.

3. In the course of implementation, if any difficulties or problems arise, organizations and individuals concerned should report to the Ministry of Industry and Trade (via the Industrial Safety Techniques and Environment Agency) to seek its guidance and possible solutions./.

The Minister

Tran Tuan Anh