The objective of this paper is to share the successful implementation of offshore self regulation in Malaysia upstream activities. Post P.U.(A) 106 Exemption Order gazetted by the Malaysian Authority to PETRONAS in 2013, Offshore Self Regulation Management System (OSRMS) was established to demonstrate compliance with this Order through strategic collaboration between PETRONAS and Malaysia Government Authority i.e. Department of Occupational Safety & Health (DOSH). Annual activities are deliberated in a joint Technical Working Committee and implementation is steered by a Joint Management Committee. The Offshore Self Regulation (OSR) allows operators to manage and sustain safe operation of all offshore facilities using their own management processes in lieu of prescriptive regulation.

One of the exemption order conditions is related to determination and certification of eligible Inspector (then known as an OSR Inspector) to examine the integrity of certificated machinery. This is achieved through joint competency assessment of potential candidates from Petroleum Arrangement Contractors (PAC) and certification by DOSH. At the same time a competency development program is established as an option for potential candidates to prepare themselves to become certified OSR Inspector. Any of assessed candidates with gaps may enhance their competencies through the program.

There are three (3) categories of audits to evaluate the effectiveness of the management system in meeting the OSR objectives. Tier 1 is internal PAC audit, Tier 2 Audit is conducted by PETRONAS and Tier 3 is a joint audit by PETRONAS and DOSH. An effective implementation of offshore self regulation management system would therefore assure the integrity and reliability of the installation or facilities. It will also safeguard the health and safety of those personnel working on offshore installations.

The implementation of self-regulation is benefiting all stakeholders including the owner (PETRONAS), occupiers (PAC operators) and government agency (DOSH) in managing occupational safety and health (OSH) and asset integrity in an efficient and cost effective way.

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