A case study examining the actual impact of safety leadership on employee safety behavior in the OIl & Gas construction sector, over a two year period during the roll-out and execution of 'B-Safe', a behavioral safety process.

1. Prof. Dominic Cooper C. Psychol CFIOSH Safety Leadership in Oil & Gas Construction: A Case Study B-Safe Management Solutions Inc 6648 East State Road 44, Franklin, Indiana, USA Tel: +1 (317) 736 8980 E-mail: info@bsms-inc.com www.behavioral-safety.com

2. Location: Middle East Activity: Construction of 2 X LNG Trains, Camp, Storage Tanks, & Jetty Number of Personnel: 47,000 Third-Party Nationals - India, Indonesia, Malaysia, Nepal, Philippines, Sri Lanka, Turkey, UAE, Two Main Contractors: French/ Japanese JV, USA Fourteen Sub-contractors: India, Ireland, Italy, UAE, USA Project Background

4. Behavioral Safety Checklist Example Completed by observers once a day

5. Visible Ongoing Support Checklist Example Completed by observers once per week

6. Safety Leadership Checklist Example Completed by managers once per week

8. Key Performance Indicators Incident Rates per 200,000hrs worked Total Recordable Incident Rate (TRIR) Year 1 = 0.09 Man-hours 41,826,852 Total Recordable Incident Rate (TRIR) Year 2 = 0.18 Man-hours 76,369,295 Total Recordable Incident Rate (TRIR) Year 3 = 0.11 Man-hours 120,860,975 Safety Observations = 2.3 million 84.67 Visible Ongoing Support checklists = 36,215 86.91 completed by observers Front-line Management Leadership Checklists = 58,659 90.15 Middle Managers Leadership Checklists = 83,731 87.58 Senior Managers Leadership Checklists = 36, 215 90.36 Corrective Actions Completed = 2,973 88.8 Observer to Worker ratio (2% target) 3.13% Number Completed Indicator % Rate Longest Run without an LTI = 121 Million man-hours

9. Safety Behavior Improvement (Percent Safe Results) Data is aligned in ‘real-time’ for all contractors on site over a 25 month period Longest LTI Free Period = 121 Million Man-hours

10. Example from part of the project, which shows Incident Rates dropped while manpower increased from 1600 - 4,500! Behavior Change and Incident Reduction

11. Project factors that are associated with Behavioral Improvement Results show Corrective Action Rates and Safety Leadership are very important to improve employee safety behavior. Observation + Feedback not sufficient on its own!! Stepwise Multiple Regression Results +85.6% +80.1% +73.4% +53.9% +21.5% Strength of Association Variables Statistical Significance P< Corrective Actions .01 Corrective Actions + Visible Ongoing Support .001 Corrective Actions + Visible Ongoing Support + Front-line Managers Leadership .001 Corrective Actions + Visible Ongoing Support + Safety leadership of Front-line and Middle Managers .01 Corrective Actions + Visible Ongoing Support + Safety leadership of Front-line, Middle and Senior Managers .01

12. Project factors that are associated with Reducing Incident Rates Results show Observation Rate, Corrective Actions and workers recording of Visible Ongoing Support by Safety leaders are very important for reducing Incident Rates Stepwise Multiple Regression results (TRIR) Stepwise Multiple Regression results (LTIR) +37.8% +35% Strength of Association Variables Statistical Significance P< Observation Rate .01 Observation Rate + Corrective Actions + Visible Ongoing Support .01 +34% +11.8% Strength of Association Variables Statistical Significance P< Observation Rate n.s. Observation Rate + Corrective Actions + Visible Ongoing Support .01