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Third party vendors fail HSE

Upstream logistics companies face challenges in educating contractors

Third party vendors fail HSE
Third party vendors fail HSE

Trying to educate third party vendors on the minimum HSE requirements necessary to operate in the upstream oil and gas sector is a challenge faced by many upstream logistics companies, according to Ayman Kabbara, general manager, Energy, Balkans, Africa, Middle East and Central Asia at CEVA Logistics.

“In our warehouse we have speed bumps and signs saying ‘maximum speed 20km/h’ and we get the third party courier trucks speeding through the warehouse, so this is a challenge,” he said.

To combat the lack of training in HSE, Ceva logistics audit third party contractors before they hire them to ensure that they meet the minimum HSE requirements. Once the audit is done, drivers are sent to Ceva’s facility to receive training on the importance of safety equipment such as helmets, safety shoes and high visibility jackets.

“You will always have that one guy who decides to leave his truck to go and get some water, just wearing his flip-flops. This is a challenge, keeping track of what is happening. We have increased the number of security guards in the facility just to keep an eye on things,” said Kabbara. “Now, every quarter, all our vendors have to send their drivers to get training on HSE.”

Given the reliance by the oil and gas industry on third party suppliers, they are an integral part of the supply and value chains that they support. Failure by third parties, for whatever reason, to deliver products and services in compliance with contracts and regulations, can have severe operational and financial consequences, according to Hiperos Oil & Gas.

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