Circular No. 40/2018/TT-BCT on the establishment and contents of safety management documents in oil and gas activities

 CIRCULAR
Regulations on the development and contents of safety management documents in oil and gas activities
Pursuant to the Law on Legislative Documents No. 80/2015/QH13;

Pursuant toPursuant to the Oil and Gas Law dated December 18, 2013;

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

Pursuant to the Government's Decree No. 95/2015/NĐ-CP dated October 16, 2015 on certain provisions of the Oil and Gas Law;

Pursuant to the Government's Decree No. 13/2011/NĐ-CP dated February 11, 2011 on security for onshore oil and gas facilities;

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

Pursuant to the Prime Minister's Decision No. 04/2015/QĐ-TTg dated January 20, 2015 on safety management in oil and gas activities;

The Minister of Industry and Trade issues this Circular on regulations regarding the development and contents of safety management documents in oil and gas activities.

This Circular stipulates the development and contents of safety management documents in oil and gas activities.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular applies to organizations, individuals, and state management agencies related to oil and gas activities conducted on land and in waters under the sovereignty of the Socialist Republic of Vietnam.

Article 2. Applicability

1. Oil and gas activities include the implementation of the following works:

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

a) Exploration, development of oil fields, and cleanup of oil and gas facilities.

b) Construction, installation, operation of oil and gas production facilities, refineries, petrochemical plants, processing and refining of oil and gas, storage, and transportation of oil and gas products.

c) Technical services directly serving the works mentioned in points a and b of this Clause.

2. Annual individual risk (IRPA) is the average annual fatality risk for an individual working in the area of the facility.

3. Individual risk (IR) is the predicted risk probability for an individual in the event of an incident/accident. It is expressed through two quantities: annual individual risk and fatality frequency.

4. Location-specific individual risk (LSIR) is the individual risk at each location due to the impact of the system's technology operations of the facility.

5. Group risk is the risk caused by the facility to groups of workers at the facility or groups of people not working but present around the facility.

6. Potential loss of life (PLL): Is the number of predicted fatalities (in a year) caused by accidents/incidents. PLL is used to identify and classify major risk sources, affecting the overall or social risk, and helps measure changes in risk when there are changes in operational activities and equipment during the lifetime of the facility.

7. Risk matrix is a two-dimensional matrix including the frequency of occurrence of incidents/accidents (IPF) and the severity level of consequences when such incidents/accidents occur (IPI).

Article 4. Time for developing safety management documents

a) Before construction, installation.

b) Before testing and operation.

c) Before modification, change in capacity, technology, cleanup of facilities upon completion of exploitation or project termination, or changes in safety policy and safety management systems.

2. Risk assessment reports are carried out:

a) During basic design and technical design.

b) Before construction, installation.

c) Before testing and operation, maintenance, and repair.

d) Before modification, change in capacity, technology, cleanup of facilities upon completion of exploitation or project termination, or changes in safety policy and safety management systems.

e) Updated every five years.

3. Emergency response plans are implemented

3. The emergency response plan is implemented

b) Before testing and operation.

c) Before modification, change in capacity, technology, cleanup of facilities upon completion of exploitation or project termination, or changes in safety policy and safety management systems.

2. Risk assessment reports are carried out:

Article 5. Requirements for a general description of the Project and Construction in safety management documents

1. Name, capacity, main products, main raw materials and fuels.

2. Location of the construction project, topographic map, natural conditions related to safety and environment.

3. Locations of office buildings, utility facilities, services, safety systems, and fire protection systems.

4. Layouts, corridors, and safe distances from technological equipment, auxiliary equipment, and related protective items.

5. Basic technological processes, chemicals, and main media related to safety, explosions, and the environment.

6. Activities related to storage, export, import, and transportation.

7. Information about personnel working on the project: Number, distribution of personnel in different areas, working hours, etc.

8. Emergency shutdown facilities, safety assurance, and fire protection systems.

Chapter II
SAFETY MANAGEMENT PROGRAM

Article 6. Safety Policy and Objectives

1. Introduction to the Occupational Safety and Health and Environmental Management System, programs applied to oil and gas operations at the project and construction site.

2. Specific Safety and Health and Environmental Policies and Objectives for activities, including:

a) On safety: Number of accidents and incidents within one year or during the operation period (if less than one year); lost time injury (LTI); total recordable incident frequency rate (TRIFR).

b) On the environment: Commitment to prevent environmental incidents; reduction of hazardous waste.

c) On management systems: Safety and Health and Environmental plans and procedures; review of Safety and Health and Environmental effectiveness; investigation and reporting of accidents/incidents.

3. Policies and objectives must be consistent with the organization's and individual's capabilities and legal regulations.

4. Commitment to implement measures to achieve these objectives.

Article 7. Organization of Safety Work and Hierarchical Responsibility for Safety Work

1. Organizational chart of personnel related to safety work, including the safety department, occupational health department; medical department; labor safety and hygiene council as prescribed.

2. Hierarchical responsibility for implementing tasks of relevant departments and individuals in safety work.

3. Reporting channels, including reports to state management agencies as prescribed and internal reports.

Article 8. Safety Training Program; Requirements for Competence, Qualifications, and Experience of Workers

1. Detailed safety training and emergency response program for various positions and job types as prescribed and required by the oil and gas industry, including:

a) Areas and groups that need safety training.

b) Content and duration of training for each group.

c) Certificates and certifications upon completion of the training course.

2. Requirements for competence, qualifications, and experience corresponding to each position as prescribed.

Article 9. Evaluation of Compliance with Laws on Safety, Health, and Environment, including the following contents:

1. Table of compliance with laws on Safety, Health, and Environment, including the following main contents:

a) Articles and sections of regulatory legal documents, international treaties to which Vietnam is a member that the construction project must comply with.

b) Summary of content to be complied with.

c) Actions/Plans to respond.

d) Documentation proving compliance.

đ) Implementation date.

e) Evaluation of implementation results: Achieved or not achieved. In case of non-compliance: Analysis of causes; corrective measures and completion deadlines.

2. List of National Technical Regulations, National Standards, safety regulations, and other standards in line with international oil and gas industry practices applicable to the project and construction site.

3. List of operational procedures, regulations on incident handling, maintenance of construction works, machinery, including:

a) Name and issuance date of the regulation, procedure.

b) Name, code, update date of the regulation, procedure.

4. List of permits and certificates of technical safety quality, including the following contents:

a) Names of permits and certificates.

b) Issuance date and validity of the permit and certificate.

Article 10. Management of Contractors

The management of contractors must ensure control over safety, health, and environmental work:

1. Regulations and procedures for managing and controlling safety, health, and the environment of contractors.

2. The capacity of contractors to manage safety, health, and the environment must be controlled and ensured to be consistent with the safety management system of organizations and individuals engaged in oil and gas activities.

3. Agreements and signing of safety terms between project and construction investors and contractors when performing tasks.

Chapter III
RISK ASSESSMENT REPORT

Article 11. Determination of the Purpose and Scope of the Report

1. The purpose of the report is to evaluate and quantify risks in the operations of organizations and individuals to effectively control and propose measures to mitigate risks throughout the process from design to construction, testing, operation, and decommissioning of projects.

2. The scope of the report includes:

a) Qualitative and quantitative assessment of risks to people.

b) Comparison of risks of activities with acceptable risk levels.

c) Proposing measures to reduce risks.

Article 12. Acceptable Risk Levels

1. The acceptable risk level is determined before conducting risk analysis and serves as the basis for the risk evaluation and mitigation process.

2. The acceptable risk level for quantitative risk assessment in oil and gas activities is stipulated in Circular No. 50/2012/TT-BCT dated December 28, 2012, issued by the Minister of Industry and Trade on National Technical Regulations on Acceptable Risk Levels for Quantitative Risk Assessment in Oil and Gas, Petroleum Products, Chemicals, and Thermal Power Activities QCVN 11:2012/BCT.

3. An organization or individual may apply a separate acceptable risk level provided that it does not exceed the risk level prescribed in QCVN 11:2012/BCT.

Article 13. Methodology for Risk Assessment

1. Qualitative risk assessment

2. Quantitative risk assessment

Article 14. Identification of Hazards

1. Identifying hazards involves determining potential dangers that may arise during oil and gas activities, causing harm to people, property, and the environment.

2. Potential hazards can originate from all project components, technological systems, and activities at various stages of oil and gas operations.

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

Article 15. Qualitative Risk Assessment

1. Construct a risk matrix to analyze and assess the risk level for identified hazards. Based on safety policies, objectives, and specific oil and gas activities, the matrix has multiple levels, not fewer than three. Detailed guidelines refer to Appendix II of this Circular.

2. The results of qualitative risk assessment are presented in a risk classification table listing all identified hazards, initial risk levels, control and risk reduction measures, and residual risk levels after applying such measures. Risk levels are determined from the risk matrix.

3. A model risk classification table according to Appendix III of this Circular.

Article 16. Quantitative Risk Assessment

1. Requirements for quantitative risk assessment

a) The quantitative risk assessment process follows QCVN 11:2012/BCT.

b) It must be conducted using specialized software with copyright and capable of calculating frequency, consequence models, and individual risk levels.

c) Individual risk levels must be compared with the acceptable risk levels specified in Article 12 of this Circular.

2. Review and select hazards for quantitative risk assessment

3. Frequency analysis

a) Determine original frequency data for each hazard: source of data, corresponding technological segments, and adjustment factors;

b) Calculation results of frequency for each selected hazard.

4. Consequence modeling

a) Types of consequence models analyzed and related input information.

b) Modeling results of consequences are presented in tables and images corresponding to technological segments of each hazard.

5. Risk calculation

6. Results of quantitative risk assessment include individual and group risks:

a) Individual risk: Represented by the annual individual risk level (IRPA).

b) Group risk: Represented by the magnitude of potential loss of life.

c) Calculation of the highest and average individual risk levels.

d) Comparing calculated risk levels with the acceptable risk levels as prescribed in Article 12 of this Circular.

Article 17. Mitigation Measures

The mitigation measures for risks include:

1. Measures to reduce the frequency of accidents and incidents.

2. Measures to mitigate consequences:

a) Related to design, load-bearing capacity, and passive fire resistance of structures.

b) Related to safety systems, support systems, and active fire protection systems.

c) Related to backup equipment systems and organizational systems in emergency situations.

d) Other measures.

3. The level of risk after applying mitigation measures must meet the acceptable risk level.

Article 18. Conclusions and Recommendations

1. Conclusions

a) Summarize important results from the process of analyzing and evaluating risks, and compare the highest levels of risk.

b) Report on the implementation results of recommendations from previous project/risk assessment reports (if applicable).

2. Recommendations Based on the evaluation results, propose technical and management solutions to address existing issues to minimize risks and enhance management effectiveness.

Chapter IV
EMERGENCY RESPONSE PLAN

Article 19. Identification and Classification of Emergency Situations

Based on the assessment of hazards, identify all possible emergency situations. Classify emergency situations according to the capabilities, scale, and complexity of the project or construction.

1. Level 1 Emergency Situation: An incident with a small scale that does not directly threaten human lives or the existence of part of the structure. It is handled and resolved by local personnel.

2. Level 2 Emergency Situation: An incident with a medium scale that may directly threaten human lives or the existence of part of the structure. It is handled and resolved by the emergency response force under the command of the Emergency Incident Response Command, which may require assistance from other units and relevant local authorities.

3. Level 3 Emergency Situation: An incident with a large scale that poses serious danger to many people, potentially destroying the structure and significantly impacting the environment. It is handled and resolved by specialized national forces, related ministries, and possibly international rescue teams.

Article 20. Organization, Hierarchical Responsibilities, and Responsibilities in Emergency Situations

1. Describe the organizational structure for emergency response corresponding to each emergency situation, showing the components of rescue teams to effectively respond to emergencies, interaction between key positions within each team, and between teams.

2. Specific tasks of each department and member within the emergency response organizational structure.

Article 21. Reporting System When Incidents, Accidents Occur, or Dangerous Situations Arise

1. Notification and Reporting Process Requirements for the notification process from when the incident is discovered until information is provided to participating rescue forces, command/directing forces, supporting staff, partners, contractors, professional rescue and relief forces of local government agencies, international rescue organizations, etc.

2. Internal Notification Requirements for the following contents:

a) Methods of notifying incidents to the Emergency Rescue Commander, participating rescue forces, departments/offices, supporting staff.

b) Content of the notification (description of the incident, type of emergency situation, location and time of occurrence, extent of damage/injured persons, status, actions taken, requests for support).

c) Communication channels (telephone, radio, alarm sounds, fax/email...).

d) Authorized person to make emergency notifications.

3. External Notification of Emergency Situations Requirements for the following contents:

a) Regulations on the form of notification and the person responsible or authorized to notify.

b) Procedures and content of notification to the main managing unit, relevant competent authorities, partners, support organizations, media, relatives of victims...

4. Incident Reporting Requirement for the content regarding the establishment and submission of accident/incident reports, internal reporting forms, to the main managing unit and relevant authorities, to media/reporters...

Article 22. Emergency Response Procedures

1. List of emergency response procedures

a) Enumerate the list of emergency response procedures applicable to the project or construction corresponding to various emergency situations. The procedures must indicate the number, code, date of issuance, and date of update (if any), and the issuing authority.

b) If all parties involved have emergency response procedures for the same emergency situation, specify under which conditions each party's emergency response procedure will be applied.

c) Enumerate the cooperative documents between partners regarding emergency response (if any)

2. Specific emergency response procedures

The specific emergency response procedure for a typical emergency situation such as fire, explosion, oil/chemical spill, gas leak, etc., specific to petroleum activities. The minimum content includes:

a) Flowchart showing the emergency response process.

b) Description of the emergency response process.

c) Classification of positions and responsibilities of individuals when an emergency occurs.

d) Communication system and reporting.

Article 23. Resources for Emergency Response

1. Command Center for Managing Emergency Response Activities

a) Information on the contact address of the Command Center's duty office.

b) List of equipment serving emergency response work of the duty office and the Command Center.

2. Internal resources for emergency response and evacuation Listing the inventory including name, quantity, type, function, installation location... of the equipment installed at the construction/facility serving emergency response work. The inventory should include a detailed description of the situations in which these devices will be used.

a) Rescue, relief, and evacuation plans, temporary shelters, and control centers

Using maps, images, and descriptions to implement the following contents:

- Rescue routes and evacuation routes.

- Areas that can be used as temporary shelters within the construction site.

- On-site control center.

- Maps, images, and descriptions also need to clearly show the arrangement of rescue equipment at rescue routes and evacuation routes, temporary shelters, and on-site control centers.

3. External resources mobilized

Fully describe the relevant resources needed to be mobilized from outside when accidents or incidents occur, including:

a) Mutual support agreements with nearby facilities and competent authorities.

b) Resources from contractual agreements (e.g., technical services, first aid, medical treatment, evacuation).

c) Inventory of names, quantities, types, functions... of safety equipment rented from outside to serve emergency response in emergency situations.

Article 24. Contact Addresses and Information for Emergency Response with Internal Departments and Reporting to Competent Authorities

1. Internal contact addresses during emergencies.

2. Contact addresses with state management agencies related to the matter.

3. Contact addresses for supporting units.

4. Templates for internal reports and for competent authorities.

Article 25. Training and Drills for Emergency Response

1. Training

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

b) Content of emergency response training for each group of employees, job groups.

c) Training plan and program.

2. Drills

a) Types of drills: Tabletop and actual.

b) Drill plan.

3. Tabletop drills must be organized before conducting petroleum activities.

4. The drill plan must clearly describe the type of situation, drill content, frequency, participants, expected time and location, and external agencies participating.

Article 26. Post-incident Recovery Plan

The post-incident recovery plan for facilities includes investigative work to assess causes and consequences with the aim of restoring and enhancing the safety level of the facility. The main requirements include:

1. Procedures for investigating and assessing the causes and consequences of accidents and incidents.

2. Plans to upgrade preventive measures, emergency response procedures, and enhance the safety level of the facility.

Chapter V
IMPLEMENTATION RESPONSIBILITY

1. The Minister of Industry and Trade authorizes the Director of the Department of Technical Safety and Industrial Environment to approve safety management documents of organizations and individuals engaged in oil and gas activities.

2. Guide the implementation of this Circular.

3. Inspect, examine, handle violations, and resolve complaints and denunciations within their authority regarding safety management in oil and gas activities as prescribed by law.

1. Lead the review and approval of safety management documents of organizations and individuals engaged in oil and gas activities that have facilities specified in Appendix I of this Circular.

2. Lead and coordinate with relevant provincial agencies to inspect, examine, resolve complaints and denunciations, and handle violations concerning the implementation of safety management documents in oil and gas activities within their jurisdiction as prescribed by law.

Article 29. Responsibilities of Organizations and Individuals Engaged in Oil and Gas Activities

2. Responsibilities of Consulting Organizations

Consulting organizations shall bear legal responsibility for the results of analysis, assessment, and calculation of contents and data in safety management documents they develop.

Article 30. Implementation Provisions

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

2. Units under the Ministry and related organizations and individuals are responsible for implementing this Circular.

3. During the implementation process, if there are difficulties or obstacles, agencies, units, organizations, and individuals should report to the Ministry of Industry and Trade (through the Department of Technical Safety and Industrial Environment) for guidance and resolution./.