An audit visit from the owner company in the oil and gas industry is a critical evaluation process that ensures operational compliance, safety adherence, and contractual obligations are met. These audits are comprehensive, often covering technical, safety, financial, and environmental aspects. Proper preparation is essential to demonstrate competence, mitigate risks, and maintain a positive business relationship. Below is a structured approach to managing such audits effectively.
1. Understanding the Audit Scope and Objectives
Owner company audits typically focus on:
- HSE (Health, Safety, and Environment) Compliance – Verification of safety protocols, emergency preparedness, and environmental safeguards.
- Operational Efficiency – Assessment of maintenance practices, production targets, and downtime management.
- Contractual and Regulatory Adherence – Confirmation that operations align with legal and contractual requirements.
- Financial and Documentation Integrity – Review of cost management, procurement processes, and record-keeping.
Best Practice: Request the audit checklist in advance to align internal reviews with the owner’s expectations.
2. Pre-Audit Preparation
Documentation Review
- Ensure all permits, licenses, and certifications (e.g., ISO 14001, OHSAS 18001) are up to date.
- Organize logs for equipment inspections, incident reports, and maintenance records.
Workforce Briefing
- Conduct pre-audit training sessions to familiarize staff with potential questions.
- Assign roles (e.g., document controllers, field guides) to streamline the audit process.
Site Readiness
- Conduct an internal HSE walkthrough to identify and rectify hazards.
- Verify that all safety signage, PPE, and emergency equipment are properly displayed and functional.
3. During the Audit: Key Focus Areas
Opening Meeting
- Present an overview of operations, safety culture, and recent improvements.
- Clarify audit logistics (site access, confidentiality protocols).
Field Inspections
- Showcase well-maintained equipment, proper waste disposal, and hazard controls.
- Highlight digital tools (e.g., predictive maintenance systems, real-time monitoring).
Interviews and Record Checks
- Provide concise, accurate responses to auditor queries.
- Demonstrate traceability in procurement, incident reporting, and training records.
Common Pitfalls: Inconsistent documentation, untrained staff, or unresolved non-conformities from prior audits.
4. Post-Audit Actions
Debrief and Preliminary Findings
- Address immediate concerns raised during the audit.
- Request clarification on ambiguous findings to avoid misinterpretations.
Corrective Action Plan (CAP)
- Develop a prioritized CAP for identified gaps, with clear timelines and responsibilities.
- Submit CAP to the owner company within the agreed timeframe.
Continuous Improvement
- Integrate audit lessons into operational workflows.
- Schedule follow-up reviews to ensure sustained compliance.
Conclusion
An owner company audit is not merely a compliance exercise but an opportunity to reinforce operational excellence and trust. By adopting a proactive approach—meticulous preparation, transparent communication, and swift corrective actions—companies can turn audits into strategic advantages.
