Management Systems

By raising awareness of risks to our enterprise, business units and operations, management systems enable Marathon Oil employees to prevent issues, leverage opportunities, drive continuous improvement and promote sustainability.

 

 

Marathon Oil’s Enterprise Risk Management (ERM) process, overseen by our board of directors, provides a means to identify, evaluate and monitor our most significant enterprise risks and mitigation activities. Our Responsible Operations Management System (ROMS) drives continuous improvement and reduces operational risk across the enterprise.

The ERM process includes an annual assessment and mid-year review to identify current and emerging risks, evaluate them based on likelihood and consequence, and focus on managing the most significant risks. Information for the assessment comes from internal assessors and individual risk champions, as well as business unit and ROMS risk assessments. Material risk factors reported in our 2017 Annual Report on Form 10-K included commodity prices; global supply and demand for hydrocarbon products; costs; production and price controls; non-OPEC production levels; industry activity levels; political instability; and weather patterns and climate change. In addition, in 2017, Marathon Oil formally approved standards for ERM, and worked to ensure the process and resulting mitigations are effective and add value.

Responsible Operations Management System

ROMS Map

Marathon Oil’s ROMS is the framework to drive continuous improvement, ensure regulatory compliance and reduce operational risk throughout our Company. It sets minimum standards for business units to meet our high expectations of health, environmental, safety and security (HES&S) performance. ROMS provides flexibility to adapt to portfolio changes and asset needs, and can be scaled for asset-level implementation. 

Marathon Oil completed our ROMS implementation and standards at the corporate level in 2017, and added the regional vice presidents to the steering committee to share their insights on how ROMS impacts our assets. We rolled out several ROMS resources, including a dashboard to track key performance indicators (KPI), a document management system, and ROMS workflow site to give employees quick and easy access to the tools and processes they need. These resources are enabling employees to share knowledge to stand up our new Permian Basin asset more efficiently.

Under ROMS, our assets must develop an audit plan every year. For example, in its 2017 audit, our Oklahoma team reviewed the federal permitting process, safe work practice program and environmental compliance program. The safe work practice review focused on Life Critical Processes such as safe driving, electrical safety and confined space entry. As a result of this audit, internal champions in the asset developed training materials, tools and resources for field employees to implement, and rolled out training tailored for specific groups. 

In 2018, we will support operational execution by providing the right tools, workflows and training for the field workforce. The emphasis will be on the ROMS elements related to design and construction, operations maintenance and integrity management, and operational readiness. Using the KPI dashboard, we will start the first annual ROMS element health review to pinpoint activities that make our operations safer, cleaner and more efficient, and will focus on doing the most effective risk reduction activities well. For continuous improvement, the results and learnings from management system audits in our U.K. and Eagle Ford assets in 2017 will be leveraged to prepare ROMS audits in Equatorial Guinea and Oklahoma in 2018.

HES&S Policies, Standards,
Practices and Audits

Marathon Oil drives organization-wide consistency, communicates expectations and sets performance requirements with mandatory HES&S policies and standards. They cover a range of activities including Stop Work Authority, Event Management, Control of Hazardous Energy and Hot Work. We update the standards as needed to reflect changes in laws or regulations, incorporate recommendations arising from audits and incident investigations, and continuously improve performance. Through programs such as Lessons Learned Sharing and Contractor Management, we raise awareness of our requirements among employees, contractors and suppliers.

The ROMS Auditing and Improvement element promotes adherence to our standards and regulatory compliance. Our tiered audit program focuses on:

  • Physical condition of operational facilities and contractors at our locations
  • Contractor safety management programs and performance
  • Management system implementation and effectiveness

Business units develop plans to address audit findings, track the plans through completion of corrective actions and share lessons learned. Key audit findings and trends are communicated to HES&S leadership and executive management, who then set priorities to seek solutions for gaps or issues that are identified.

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