PDO letterhead
From: Contract Holder
Date:
Insert date
To:
Insert Contractor CEO Name & Contract Manager
Insert Contractor company Name
Insert Contractor contact details
CC:
Suleiman Tobi (OSD), Contract Owner & Hamad Al Khalfeen (MSE/1)
Dear insert name,
Re: 2012 Letter of Assurance Verification Process
This letter follows the email correspondence from Suleiman Tobi (OSD), on the subject of the
HSE LoA submission, sent on 20th Feb 2012. Specifically, please be notified as follows:

Your company has been selected to undergo the verification process

The verification activity for your company will be conducted between insert start date and
finish date.

The verification will be conducted as per the attached Terms of Reference. As such, it
will focus on sampling the following contract:
o
Insert contract name and number
The verification activity will commence at 8.30 hrs on the XXXX in PDO’s G 234 conference
room, with a joint meeting between yourselves and the verification team. PDO requests that
you and your GM, contract manager and HSE manager attend. You may invite other
attendees from your organisation, as appropriate. At this meeting the verification team leader
will deliver a 30 minute presentation, describing the process to be followed in line with the
Terms of Reference sent to you. Following this, PDO requests that you or your delegate,
make a presentation of approximately 30 minutes duration. This presentation should cover
the following:
o
A summary of the response given to the “HSE Letter of Assurance” and “HSE
Capability Questionnaire”
o
Overview of Contractor HSE MS
o
Overview of Contract HSE Plan including Insert Contract number
o
Overview of the Contractors 3 year HSE performance.

The verification activity will conclude with a closing presentation delivered by the
verification team leader. PDO request that you and your Contract Manager attend. You
may invite other attendees from your organisation, as appropriate. This presentation will
last for approximately one hour. It will take place in PDO’s G 234 conference room, and
will commence at 8.30 hrs on the XXX of XXX 2012.

Finally, PDO request that you appoint two focal points to assist the verification team by
gaining access to relevant Contractor people, sites, accommodation, transport,
documentation, meeting rooms and the other resources required to conduct the
verification. The roles of the focal points should be broadly as follows:
o
A primary focal point to assist in planning the verification activity and to facilitate
the “office-based” part of verification activity. This person should be familiar with
the HSE Letter of Assurance and the HSE Capability Questionnaire. In the first
instance, this person will work with PDO representatives to finalise the Terms of
Reference. As such, PDO suggest that this person be your Contract Manager or
HSE Manager.
o
A second focal point to facilitate the verification activities to be conducted “at
site”.
We would be grateful if you could advise the names of the focal points as soon as possible.
We look forward to your co-operation in this exercise.
Regards
Insert Name of Contract Holder
ATTACHMENT 1
GENERAL TERMS OF REFERENCE
Terms of Reference
Letter of Assurance Verification
CONTRACTOR
Verification Dates
Xx/yy/2012
Prepared by: MSE12
Table of Contents
1.
Background ............................................................................................................ 5
2.
Objectives .............................................................................................................. 5
3.
Scope ...................................................................................................................... 5
4.
Logistics ................................................................................................................. 5
4.1
4.2
4.3
4.4
Office requirements: .....................................................................................................6
Computer arrangements: ..............................................................................................6
Secretarial support: .......................................................................................................6
Transport: .....................................................................................................................6
5.
Pre-reading material ............................................................................................... 6
6.
Security arrangements ............................................................................................ 6
7.
Agenda and Timing................................................................................................ 7
8.
Methodology .......................................................................................................... 8
9.
Reporting................................................................................................................ 8
Appendix A – Pre-reading list ....................................................................................... 9
Background
Contractor HSE Management is one of PDO’s 4 “Must Win” HSE projects in 2011. A key element of
this project is to improve the manner in which PDO obtains assurance as to the HSE management
controls implemented by its contractors. To this end, PDO is undertaking a contractor HSE Letter of
Assurance process, and associated verification exercise.
Objectives
The verification will check the validity of statements made by the contractor in the:

HSE Letter of Assurance
The verification will also provide PDO with information which can be used to evaluate contractors in
future tenders.
Scope
Although the statements made by the contractor in completing the HSE Letter of Assurance relate to
all activities conducted under contracts with PDO, the verification activity will sample only the
following contracts:
Cxxxxxxxxx
This contract shall be sampled by visiting the contractor’s offices in Muscat, and field activities.
Verification Team Composition: contract
1
2
3
4
5
Name
Khalifa Al Harthy
Kevin Doyle/Nasser Touqi
CH
HSE Team Leader
A specialist as may be required
Position in team
Team Leader
Secondary Leader
Member
Member
Member
Logistics
The Contractor has nominated the following as verification focal points:
To be appointed by contractor
The role of the focal point is to assist the verification team by gaining access to relevant Contractor
people, sites, accommodation, transport, documentation, meeting rooms and the other resources
required to conduct the verification.
The verification team will be based in the following locations during the exercise:
Office: Indicate location in Muscat
Interior Site: To be decided
Office requirements:
One meeting room throughout the review period which can comfortably sit 8 to 10 people, including
projection screen and overhead projector, blinds/curtains for windows and 2 power extension cords
for PCs.
In addition, 1 off small office comprising 4 desks, or open office plan work stations for each review
team member.
Computer arrangements:
The review team members will each have their own laptop computers. However, two off dedicated
PCs should also be made available for the team. These PCs should be configured to enable internet
access and to provide network printing capabilities.
Secretarial support:
A part-time secretary is required. He/she should be familiar with MS Word and PowerPoint. He/she
may be required from time to time, to assist the review team.
Transport:
Transport arrangements are required to/from office and site.
Pre-reading material
Pre reading material identified in Appendix A will be made available on 14th of May 2011 for the
team to review prior to verification. This will ensure that the review team will be familiar as possible
with the project.
Security arrangements
All review team members will require standard security/access passes for the contractors offices for
the review period. Also local safety induction sessions that the team will be required to attend shall
be scheduled.
Typical Agenda and Timing
The verification will commence on xx/yy/2012 will be conducted over the course of 5 days, with a
close out presentation on the xx/yy/2012
Day 1
(Sat)
8:30 – 9:30
Location – Green 234
Introductions – Suleiman Tobi (OSD)
Purpose of the LOA verification process – MSE1
LoA verification process and ToR – MSE12x
9:30 12:00
13:00 –
17:00
Day 2
(Sun)
Day 3
(Mon)
Day 4
(Tue)
AM
Team review of findings
Travel to agreed field site (Flight Booking and accommodation
organised by CH)
PM
Work Shop/Site inspection and Interview
Site inspection & Interview
AM
Interview + site inspection
PM
Team review of findings
AM
Return to Muscat
Team collate findings
PM
Day 5
(Wed)
AM
Day 6
8:30 –
10;30
(Sat)
LoA Submission presentation by contractor CEO
Relocate to contractor office - Team review (ToR, verification work
plan, pre-reading submission)
Team review HSE LoA Submission, Interview + document review
Preliminary review with Contractor HSE department and prepare
close out presentation
Preparation of presentation for closing session
Location – GR 234 Meeting Office
Introductions – Suleiman Tobi, OSD
LoA verification process findings - MSE12
Methodology
The team members shall gather information by observation, through interviews and by checks of
hardware and documentation in line with the verification work plan. Conscientious efforts shall be
made to verify findings and to confirm the validity of recommended actions. Where judgement is
required the result shall be determined by consensus within the team.
Reporting
The team shall present the verification results to the Contractor in a closing presentation. The
verification team leader shall prepare a letter confirming verification findings within one week after
the close-out presentation.
Where verification evidence varies from claims provided by the contractor, the letter shall contain
any necessary qualifications to the Letter of Assurance. It shall also propose a Focused Action Plan,
as necessary, to address any such qualifications.
Appendix A – Pre-reading list: Required
Pre-reading
LoA item
1.1 HEMP
HEMP Procedure
Contract HEMP
Controls plan
TBT Procedure
TBT schedule/attendance Log
TBT material, guides, training etc
Example TB covering a range of activities
Example PTW covering a range of activities
HSE plan
1.2 Life Saving Rules
LSR Roll out plan and communication plan
communication method and examples
Consequence management system, procedure.
Implementation plan
Records of communication activities
1.3 Road Safety
Road Safety/Transport Procedure
Commuting Policy
Gap analysis against SP2000
Implementation plan
Audit/review report for compliance against SP2000
RAS certification
Example of Vehicle checklists
List of drivers on PDO Contract and training records
1.4 HSE Incident Management
Incident Management procedure
List of incidents
Example of incident report for consequence 4/5
Dissemination or cross learning methodology
Action tracking list for previous 12 months with status
of actions.
Close out example from consequence 4/5 close out
report.
1.5 Staff
Training Procedure
Company training matrix
Completed training record for PDO personnel or
register etc.
STOP/equivalent procedure
Stop/equivalent program
STOP/equivalent register, trend analysis
STOP/Equivalent training records
STOP/Equivalent audit report
CA&A procedure
CA&A program
List of critical HSE roles, tasks etc
List of personnel undergoing or undergone
assessment
Example of record with assessment and gap analysis.
List of personnel/positions at site
1.6 Performance Reporting and Execution
Performance reporting procedure
Monthly and annual returns
Analysis reports
Audit and action tracking procedure
Audit schedule
Audit report for pervious 3 audits
Action tracking log including outstanding/overdue
actions
Management review procedure with latest
management review report/minutes of meeting etc
1.7 Sub-contractors
HSE contractor management Procedure
Subcontractor requirements/checklists
Contract/ subcontractor Risk assessment
List of current subcontractors
Consequence management framework
Contractor penalization system
Methodology for Communicating to contractors
1.8 Asset Integrity – Process Safety Management
Asset Integrity Strategy
Asset Integrity Program
list of safety/environmental critical equipment
Performance standard listing for critical equipment
Inspection schedule for critical equipment
1.9 Health
Medical Emergency procedure
List of medical equipments/facilities
List of medical personnel
Medical Emergency drills and exercises
Medical Examination procedure
List of Fitness To Work assessments for personnel
List of HACCP certified contractors and subcontractors
1.10 Environment
Waste management procedure
List of current waste inventories
Example waste consignments for Chemical waste
Waste segregation methodology
Storage method statements for Chemical storage
List of STP and RO plants and certification available.