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MANAGEMENT SYSTEMS

Marathon Oil identifies and monitors our most significant risks and mitigation activities using the recently enhanced Enterprise Risk Management process, with input from executive management, business units and internal audit.

Internal champions, together with the business units, participate in the assessment process that considers current and potential future risks and creates detailed assessments at all levels.  Business units are responsible for managing identified risks day-to-day.

Marathon Oil informs our Board of Directors and executive management on our risks and reports the most significant risks in our 2015 Annual Report on Form 10-K. In 2015, these risks included, but were not limited to, global oil and natural gas prices, supply and demand; operational costs; OPEC production controls; the level of operational activity in response to market conditions; political instability in producing regions; changes in weather patterns and climate; natural disasters; and governmental regulations and taxes.

 

RESPONSIBLE OPERATIONS MANAGEMENT SYSTEM (ROMS)

Our Responsible Operations Management System (ROMS)  is the framework to drive continuous improvement and reduce operational risk across the enterprise. The goals of ROMS, which replaces our previous management system, are to promote safety and environmental protection and to ensure reliable operations and asset integrity. There are 14 elements with expectations to assist our business units in identifying, addressing and managing their operational risk. The system is scalable to individual business units’ size and type of operations.

 

ROMS

 

 

 

ROMS supports our commitment to high standards of health, environmental, safety and security (HES&S) performance, while HES&S standards clarify our expectations for organizational performance to drive consistency. Our Corporate Sustainability Guidelines complement ROMS by outlining how we demonstrate our commitment to economic, environmental, safety and social sustainability in the communities where we operate.  

By standardizing and simplifying all Marathon Oil standards and tools, ROMS reduces redundancy and highlights opportunities for continuous improvement. Greater consistency will accelerate employee onboarding and transitions among assets, and improve effectiveness and knowledge transfer. ROMS also allows us to quickly identify trends and make decisions based on improved information tracking and sharing.

To develop ROMS, a steering team of executives, senior leaders and subject matter experts reviewed our existing management systems, peer and industry management systems, and industry standards such as ISO 14001 and the American Chemistry Council’s Responsible Care performance system.

Subject matter experts performed a gap analysis for each element and identified opportunities for improvement, including:

  • Enhancing the Management of Change (MOC) standard process to meet ROMS expectations.
  • Improving the risk assessment process by setting minimum expectations, as well as creating a single risk assessment timeline and consequence matrix that applies to all business units and the Enterprise Risk Management process.
  • Creating a training standard that sets minimum expectations for operations-related training and competency activities to ensure consistency across the Company. 

To assure accountability for ROMS’ effectiveness, each element has an executive owner responsible for setting priorities and expectations, and tracking and reporting progress to the executive steering team. In addition, technical advisors work with subject matter experts and other resources on implementation, evaluation, prioritization, resource needs and progress. The business units have a similar structure to further drive accountability.  Our business units are expected to complete a gap analysis for each element in 2016 and fully implement ROMS in 2017.

 

 

HES&S STANDARDS, PRACTICES and audits

Our HES&S standards set expectations and requirements for performance to drive consistency throughout Marathon Oil. These standards are reviewed regularly and updated to reflect changes in laws or regulations, incorporate recommendations arising from audits and incident investigations, and continuously improve performance.

Our HES&S programs make personnel aware of these requirements and their role in meeting the expectations of these standards. The Company’s tiered HES&S audit program promotes adherence to these standards and compliance with regulations. Business units develop plans and corrective actions to address audit findings and we have processes to ensure corrective actions are completed. HES&S leadership and executive management are informed of key audit findings and trends so they can prioritize solutions for identified gaps or issues.


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