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Noble’s experience with the
introduction of Environmental
 Management Systems (EMS)

     Noble Corporation
         May 2005
ISO 14001 Certification
      In 2000 Noble’s European
       Division became the first
        drilling contractor in the
     world to become ISO 14001
                certified.




                                     2
HSE Management System Certification
                        North Sea
                                                        Noble units 9
                                                        Platform rigs 12

                                                        Certifications:
                                                        • ISO 9001 (19)
                                                        • ISO 14001 (9)                               Middle East & India
                                                        •                                         Noble units 17
      U.S. GOM                                                                                    Certifications:
                                                                                                  • ISO 14001 (14)
  Noble units 11                                                                                  Note: 3 units not yet
  Certifications:                                                                                 eligible for certification
  • ISO 14001 (11)                            Canada
                                      Platform Rigs 2
                                      Certifications:
                                      • ISO 9001 (2)
                                      • ISO 14001 (2)




                                                                 Brazil
    Mexico
    Noble units 8                                             Noble units       4
    Certifications:                                           Certifications:
    • ISM Code (8)                                            • ISM Code (4)             West Africa
    • ISO 14001 (8)                                           • ISO 14001 (4)
                                                                                    Noble units 7
                                                                                    Certifications:
                                                                                    • ISO 14001 (7)




Note: Amounts in parenthesis represent the number of rigs certified                                                            3
Noble and the Environment


“All of us have the responsibility of being good stewards of the
environment. Our collective efforts will assure that the current
generation and subsequent generations will enjoy the benefits
of these endeavors through a cleaner environment. Obviously,
to preserve and improve our environment takes the commitment
by individual citizens, the public sector, and the industry.”

 James C. Day




                                                                   4
Environmental Management
System (EMS)

                     How does it work?




                                         5
EMS ISO 14001 certified or not

             Certified                   Non-certified
   Internationally recognized   Non recognized – needs to
   environmental performance    demonstrate environmental
                                performance
   Consistency recognized       Possible inconsistency, needs
                                demonstration
   Fully documented             Not necessarily documented

   Comprehensive                Possibility of being partial

   Continuous improvement       Improvement may be by-passed
   imbedded in the EMS
   Independently audited        May or may not be audited


                                                                6
Noble’s EMS implementation


         Bottom-up                 Top-down

         1998-2000                   2000 <

         Unit by unit             Multiple units

     European Division             Worldwide

     Great level of detail       General issues

    Knowledge gathering      Knowledge dissemination

                                                       7
Bottom-up

              IDENTIFICATION OF ENVIRONMENTAL ASPECTS
                 FOCUSING MAINLY ON PHYSICAL ITEMS




  Liquid boundary                              Chemical
                      Bulk operations
     protection                                handling

                          Special
  Resources usage                            Well testing
                        substances

                       Emergency
    Well control                                Wastes
                     control measures


                                                            8
Top-Down


                     IDENTIFICATION OF ENVIRONMENTAL ASPECTS
                      FOCUSING MAINLY ON ACTIVITY PROCESSES



     Drilling,            Supply and           Painting,
  completion and        transportation      sandblasting and
    work-over             operations            chipping
                       Mobilization /
   Rig clean-up                               Maintenance
                       Demobilization
                                                Offices,
                      Major Emergency
  Hotel and office                          warehouses and
                         Response
                                                 yards
                                                               9
Ideal EMS

  A BLENDED EMS, with general elements identified at process
  level on a Rig group (i.e. Division) which frames individual
  units EMS, focused on structure and equipment.


  It will have a higher efficiency, as:
      •The Rig personnel will perceive the EMS as it’s OWN and
      not as IMPOSED.
      •Environmental Awareness will rise fast.
      •Much more individual items will be dealt with, thus
      speeding-up the level of environmental performance of the
      unit.




                                                                  10
THE EVOLUTION OF PRIORITY FOCUS




           Setting objectives and targets based on
           measurable acquired data

           Statistical data collection and management
           system implementation

           Improvements on equipment, forms,
           training, communication.

           Containment jobs, welding, plug,
           kickplates, etc.

                                                        11
Visible changes

            CONTAINMENT


  Escape routes of pollutants were identified and closed
  to ensure 100 % containment on board.




                                                           12
Visible changes


          BULK TRANSFERS

  A superior level of efficiency on bulk transfer of
  hydrocarbons was implemented. This was obtained
  by a mix of stringent procedures and the quality
  control of the bulk transfer system.




                                                       13
Visible changes

       DISCHARGE VALVE CONTROL


    All environmental sensitive valves were identified
    and controls implemented, to minimize the risk of
    uncontrolled discharges of pollutants.




                                                         14
Visible changes

    EMERGENCY CONTROL MEASURES


  Adequate spill control equipment is on board of all
  units




                                                        15
Visible changes

       CHEMICAL’s MANAGEMENT

    Chemical management was improved, by the use of
     adequate storage and segregation of hazardous
      chemicals, labelling, information and use and
                  handling procedures.




                                                      16
Visible changes

         WASTE MANAGEMENT


   A comprehensive system for waste
        collection, segregation,
     measurement and disposal has
     been implemented in all units.




                                      17
Visible changes
 Signs, Posters, labels




                          18
Hidden improvements
      Environmental Related Forms




                                    19
Kg




                                            0
                                                100,000
                                                          200,000
                                                                    300,000
                                                                                   400,000
                                                                                             500,000
                                                                                                       600,000
                                                                                                                 700,000



                                 General

       Food remains / Food contaminated

                        Paint and thinner

                Paint Tins/Cans/Brushes

                    Paint Chippings / Grit

            Aerosol Cans - used & empty

                      Fluorescent tubes

                    Medical and sanitary

                                Batteries

                               Oily Rags

                               Oil Filters
                                                                                                                                                                            Hidden improvements




     Oil/Grease/Dope Drums/Cans - empty

            Chemical Sacks and Big bags

           Chemical Drums/Cans - empty

                               Engine oil

               Oil (non engine) in Drums
                                                                                                                           Waste transferred 2004




                   Paper and cardboard
                                                                                                                                                    STATISTICAL KNOWLEDGE




                                   Glass

                                    Metal

                      Plastic and Rubber

                                   Wood

                                 Helifuel

                        Cooking Grease

                                  Hoses

                        Cement Returns

                          Electric related

      Water Dirty/Contaminated (+40 ppm)

                     Other non specified
20
Actual KPIs



  Air emissions   PM, SOx, NOx, VOC, CO, CO2, CH4,
                  N2O emitted from engines.
                  Ozone depletion gases escapes
  Liquid          Engine room oily water discharges, Deck
  discharges      drainage discharges

  Waste           Waste segregated, measured and
  production      disposed under 28 different types

  Chemicals       All OSPAR controlled chemicals (Pipe
  release         dope, jacking system grease, Rig wash,
                  BOP fluid) are measured
                                                            21
Social Pressure

 Within society there is a growing
 perception to the scale of
 environmental problems our planet is
 facing, caused by untamed industrial
 development and bad practices.


 It is expected that more and more
 environmental regulations will be
 implemented in the European Union
 area.



                                        22
Clients pressure

   Our clients are on the
   first line of compliance.
   They are directly
   answering to the state
   authorities.
   Some of our most
   important clients had
   already implemented
   Environmental
   Management Systems or
   were in the process of
   doing so.
   It is obvious that Drilling
   Contractors shall be
   aware and do the same.


                                 23
OSPAR Recommendation 2003/5




   2.3 - The goal of this Recommendation is that by the
   end of 2005 all operators (…) should have in place
   Environmental Management Systems (EMS) that are
   in accordance with the principles of internationally
   recognized standards.




                                                          24
                                                           24
fmarques@noblecorp.com   NOBLE CORPORATION
                         13135 South Dairy Ashford, Suite 800
                              Sugar Land, Texas 77478
                                   (281) 276-6100
                                     NYSE: NE
                                  www.noblecorp.com

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2005 IADC HSE Esberg Noble Experience With Ems

  • 1. Noble’s experience with the introduction of Environmental Management Systems (EMS) Noble Corporation May 2005
  • 2. ISO 14001 Certification In 2000 Noble’s European Division became the first drilling contractor in the world to become ISO 14001 certified. 2
  • 3. HSE Management System Certification North Sea Noble units 9 Platform rigs 12 Certifications: • ISO 9001 (19) • ISO 14001 (9) Middle East & India • Noble units 17 U.S. GOM Certifications: • ISO 14001 (14) Noble units 11 Note: 3 units not yet Certifications: eligible for certification • ISO 14001 (11) Canada Platform Rigs 2 Certifications: • ISO 9001 (2) • ISO 14001 (2) Brazil Mexico Noble units 8 Noble units 4 Certifications: Certifications: • ISM Code (8) • ISM Code (4) West Africa • ISO 14001 (8) • ISO 14001 (4) Noble units 7 Certifications: • ISO 14001 (7) Note: Amounts in parenthesis represent the number of rigs certified 3
  • 4. Noble and the Environment “All of us have the responsibility of being good stewards of the environment. Our collective efforts will assure that the current generation and subsequent generations will enjoy the benefits of these endeavors through a cleaner environment. Obviously, to preserve and improve our environment takes the commitment by individual citizens, the public sector, and the industry.” James C. Day 4
  • 6. EMS ISO 14001 certified or not Certified Non-certified Internationally recognized Non recognized – needs to environmental performance demonstrate environmental performance Consistency recognized Possible inconsistency, needs demonstration Fully documented Not necessarily documented Comprehensive Possibility of being partial Continuous improvement Improvement may be by-passed imbedded in the EMS Independently audited May or may not be audited 6
  • 7. Noble’s EMS implementation Bottom-up Top-down 1998-2000 2000 < Unit by unit Multiple units European Division Worldwide Great level of detail General issues Knowledge gathering Knowledge dissemination 7
  • 8. Bottom-up IDENTIFICATION OF ENVIRONMENTAL ASPECTS FOCUSING MAINLY ON PHYSICAL ITEMS Liquid boundary Chemical Bulk operations protection handling Special Resources usage Well testing substances Emergency Well control Wastes control measures 8
  • 9. Top-Down IDENTIFICATION OF ENVIRONMENTAL ASPECTS FOCUSING MAINLY ON ACTIVITY PROCESSES Drilling, Supply and Painting, completion and transportation sandblasting and work-over operations chipping Mobilization / Rig clean-up Maintenance Demobilization Offices, Major Emergency Hotel and office warehouses and Response yards 9
  • 10. Ideal EMS A BLENDED EMS, with general elements identified at process level on a Rig group (i.e. Division) which frames individual units EMS, focused on structure and equipment. It will have a higher efficiency, as: •The Rig personnel will perceive the EMS as it’s OWN and not as IMPOSED. •Environmental Awareness will rise fast. •Much more individual items will be dealt with, thus speeding-up the level of environmental performance of the unit. 10
  • 11. THE EVOLUTION OF PRIORITY FOCUS Setting objectives and targets based on measurable acquired data Statistical data collection and management system implementation Improvements on equipment, forms, training, communication. Containment jobs, welding, plug, kickplates, etc. 11
  • 12. Visible changes CONTAINMENT Escape routes of pollutants were identified and closed to ensure 100 % containment on board. 12
  • 13. Visible changes BULK TRANSFERS A superior level of efficiency on bulk transfer of hydrocarbons was implemented. This was obtained by a mix of stringent procedures and the quality control of the bulk transfer system. 13
  • 14. Visible changes DISCHARGE VALVE CONTROL All environmental sensitive valves were identified and controls implemented, to minimize the risk of uncontrolled discharges of pollutants. 14
  • 15. Visible changes EMERGENCY CONTROL MEASURES Adequate spill control equipment is on board of all units 15
  • 16. Visible changes CHEMICAL’s MANAGEMENT Chemical management was improved, by the use of adequate storage and segregation of hazardous chemicals, labelling, information and use and handling procedures. 16
  • 17. Visible changes WASTE MANAGEMENT A comprehensive system for waste collection, segregation, measurement and disposal has been implemented in all units. 17
  • 18. Visible changes Signs, Posters, labels 18
  • 19. Hidden improvements Environmental Related Forms 19
  • 20. Kg 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 General Food remains / Food contaminated Paint and thinner Paint Tins/Cans/Brushes Paint Chippings / Grit Aerosol Cans - used & empty Fluorescent tubes Medical and sanitary Batteries Oily Rags Oil Filters Hidden improvements Oil/Grease/Dope Drums/Cans - empty Chemical Sacks and Big bags Chemical Drums/Cans - empty Engine oil Oil (non engine) in Drums Waste transferred 2004 Paper and cardboard STATISTICAL KNOWLEDGE Glass Metal Plastic and Rubber Wood Helifuel Cooking Grease Hoses Cement Returns Electric related Water Dirty/Contaminated (+40 ppm) Other non specified 20
  • 21. Actual KPIs Air emissions PM, SOx, NOx, VOC, CO, CO2, CH4, N2O emitted from engines. Ozone depletion gases escapes Liquid Engine room oily water discharges, Deck discharges drainage discharges Waste Waste segregated, measured and production disposed under 28 different types Chemicals All OSPAR controlled chemicals (Pipe release dope, jacking system grease, Rig wash, BOP fluid) are measured 21
  • 22. Social Pressure Within society there is a growing perception to the scale of environmental problems our planet is facing, caused by untamed industrial development and bad practices. It is expected that more and more environmental regulations will be implemented in the European Union area. 22
  • 23. Clients pressure Our clients are on the first line of compliance. They are directly answering to the state authorities. Some of our most important clients had already implemented Environmental Management Systems or were in the process of doing so. It is obvious that Drilling Contractors shall be aware and do the same. 23
  • 24. OSPAR Recommendation 2003/5 2.3 - The goal of this Recommendation is that by the end of 2005 all operators (…) should have in place Environmental Management Systems (EMS) that are in accordance with the principles of internationally recognized standards. 24 24
  • 25. fmarques@noblecorp.com NOBLE CORPORATION 13135 South Dairy Ashford, Suite 800 Sugar Land, Texas 77478 (281) 276-6100 NYSE: NE www.noblecorp.com