Over the past decade, safety, health and environmental management has become an important part of the strategic focus and direction of most international oil companies. International standards such as ISO 9000, the total quality management standards and the soon to be adopted ISO 14000 standards concerning environmental management and auditing are increasingly becoming a requirement to being successful in the global market place. This paper examines the processes that CALTEX PACIFIC INDONESIA (CPI) in cooperation with PERTAMINA is using to systematically integrate safety, health and the environment into its business activities as it structures itself to meet the competitive challenges of today and tomorrow.

With the recent emergence of safety, health and environmental (SH&E)management systems and the evolution of our total quality management approach to all of our business activities, we embarked on a long range plan to implement state-of-the-art SH&E management systems into all phases of our business. This paper describes the development of a unified SH&E Policy, integration into the business strategic plan, conducting a baseline environmental management systems audit and the ongoing implementation into the processes at the operating level. This paper outlines our organizational structure improvements as the company reorganized itself from a functionally-based organization to a team-based organization structured around asset value optimization that in stills ownership at the field level. The paper explores the alignment of CPI's management systems to the requirements and intent of several industry approaches as well as ISO 14000.

The paper concludes that only through a structured SH&E management system approach, in cooperation with all the stakeholders, the shareholders, government and the public, can exemplary safety, health and environmental performance be achieved.


The oil and gas industry have a challenging opportunity in the international arena to demonstrate that it can develop energy resources in a prudent and responsible manner. The underdeveloped countries are quickly developing their resources and economies. Communication is now global and the awareness and concerns by the host governments and local communities demand that the industry operate with the same values and standards worldwide. That does not mean the same regulatory requirements apply everywhere, but requires industry to operate within the principles of sustainable development that promote economic development while protecting the environment for future generations. Implementing forward-looking, structured safety, health and environmental management systems such as those contained in the API STEP Program, Responsible Care, E&P Forum Guidelines, ISO 14000 and others are the best way to ensure long term access to petroleum resources.


Successful business leaders today recognize that embracing Total Quality Management (TQM) as a way to conduct its business pays many dividends. Among the many benefits are:

  • more efficient — lower cost business processes

  • employee satisfaction and an empowered workforce

  • higher level of customer satisfaction

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