Annual Report & Accounts 2013

 

HEALTH, SAFETY, ENVIRONMENTAL AND SOCIAL REVIEW

Highlights

HSES Management System updated including the policy, procedures and guidelines governing risk management, employee and contractor competency, contractor management, stakeholder engagement, asset integrity and reporting

Corporate emergency management plan refreshed and initial training completed

ISO 14001 and OHSAS 18001 international accreditation for environmental and safety management maintained in Bulgaria and Egypt

Successful environmental preparation and permitting for the Romanian exploration drilling programme, including response drills and exercises

Initiated a new community welfare project in Egypt to refurbish and equip a social services centre and school in Shirinkash village in the Nile Delta

Continued support for the West Dikirnis school in the Nile Delta and the Karin Dom day centre for disadvantaged children in Varna, Bulgaria

 




At Petroceltic, we are committed to maintaining high standards of health, safety, environmental and social performance across all our operations. Our aim is to create a well governed, sustainable business with a strong sense of social responsibility which has a positive impact in the countries in which we operate.

Consistent with our guiding business principles and HSES Policy, we strive to:

  • Avoid harm to all people involved in, or affected by, our operations
  • Minimise the impact of our operations on the environment
  • Comply with all applicable legal and regulatory requirements
  • Act in an ethical manner and ensuring transparency in our business dealings
  • Have a positive impact on the people and communities directly affected by our activities and
  • Achieve continuous improvement in our HSES performance.

Health, Safety, Environmental and Social performance is integral to the success of our Company, and is managed alongside all other facets of the business. In recognition of the Company’s current portfolio and forward programmes, we have taken significant steps to further enhance our HSES management capability.

During 2013, we undertook a complete overhaul of the Company’s corporate HSES Management System which provides a systematic approach to delivering our policy objectives, assigns clear responsibilities and establishes consistent processes for identifying, controlling and monitoring HSES risks in the business.

A suite of underpinning procedures and guidelines have been developed, reviewed and approved at Board level. These have been communicated into the business and the process of adoption at country and asset level is now underway. In addition, the corporate emergency management plan was refreshed and an initial training programme completed for the emergency management team.

Commensurate with the importance the Company places on these matters, during 2013 we significantly increased our dedicated HSES resources, most notably through the appointment of Stuart Harrower as Group HSES Manager in December. New HSES professionals were appointed to help manage the Ain Tsila development in Algeria and we established a dedicated Social Responsibility role for our Nile Delta operations in Egypt.

David Thomas, Chief Operating Officer, has been designated as the Executive Board member responsible for the HSES Policy and Management System and formally reports on these matters on a regular basis to the Board. A HSES update is also provided at each monthly meeting of the Executive Management Committee.

Managing HSES Risks and Performance+-

Central to the HSES Management System Framework is the process of identifying and addressing potential health, safety, environmental and social risks at all stages of the lifecycle, from new business development, to exploration activities, subsequent development and ongoing operations.

Key HSES indicators are identified and monitored throughout the year. Performance against these is reported regularly to the Board and when required to regulators, investors and financial supporters. The results are consolidated at the end of each year and overall performance is reviewed by the Senior Management team where areas for improvement are identified and integrated into forward plans.

HSES Performance Metrics+-

Key HSES performance metrics in 2013 were as follows:

Occupational Safety Performance

Country

2013 LTIs

2012 LTIs

Algeria

0

0

Bulgaria

1

0

Egypt

4

4

Romania

1

n/a

Total Lost Time Injury

6

4

Total Lost Time Injury Frequency (LTIF)
per million hours worked

2.09

1.58

 

Historically we have used Lost Time Injury (‘LTI’) frequency as our prime measure of occupational safety performance. Reported cases increased in 2013. The Company experienced a total of six LTI’s, three of which occurred in the last 6 weeks of the year. In all cases, the injured parties have made full recoveries, and the incidents were each subject to full investigation with appropriate remedial actions identified and implemented.  The incident reviews also identified a number of recurring themes which will enable us to focus our improvement efforts.  Firstly the matter of drilling contractor safety management (five of the cases were associated with drilling operations) and secondly, the importance of hazard awareness and assessment prior to activities taking place. We have already incorporated these considerations in our 2014 plans and will introduce additional, deeper performance metrics to encourage reporting of, and learning from lower level incidents.

Environmental Performance +-

For this report, GHG emissions are reported as gross operated CO2e for all countries, using UK Defra / DECC guidance on measurement and reporting of GHG emissions, aligned to the GHG Protocol, the internationally recognised standard for the corporate accounting and reporting of GHG emissions.

2013

Egypt

Bulgaria

Romania

Total

GHG emissions (tonnes CO2e)

84,652

29,207

3,548

117,407

Total produced water quantity (Mbbl)

1,169

220

-

1,389

Produced water quantity re-injected (Mbbl)

700

-

-

700

Produced water quantity disposal (Mbbl) *

560

220

-

780

Oil spills (bbl)

<1

-

-

<1

2012

Egypt

Bulgaria

Romania

Total

GHG emissions (tonnes CO2e)

99,532

23,671

-

123,203

Total produced water quantity (Mbbl)

1,284

151

-

1,435

Produced water quantity re-injected (Mbbl)

788

-

-

788

Produced water quantity disposal (Mbbl) *

496

151

-

647

Oil spills (bbl)

<1

-

-

<1

*Produced water treatment & disposal in both Egypt and Bulgaria is by third party provider

Production operations in Egypt and Bulgaria were comparable with prior year, with production throughput related variation in emissions only. Drilling activities undertaken offshore in both Bulgaria and Romania resulted in associated additional emissions.

Social Projects+-

Petroceltic is keenly aware of the potential social impacts of its oil and gas operations on local communities and strives to respect and accommodate cultural, religious and social diversity. The Company’s HSES Policy formally recognises this and provides the basis for an on going programme to actively seek appropriate social welfare and development initiatives. There is no pre-determined policy on the level of contribution to social projects and each is taken on its merits with a preference towards sustainable initiatives focused on education, health and job creation.

During 2013, we initiated a project to refurbish and equip two existing establishments, in the Shirinkash village which has a population of 15,000 people and neighbours the Company’s South Batra plant in the Nile Delta. The Benevolence and Social Services Society provides support to local families, this facility houses a mosque, medical and dental clinic, small nursery school and also provides employment for women and orphan girls in a spinning and weaving facility. The Al Azhar religious school provides primary education to 350 pupils equally divided between boys and girls.

Petroceltic also continues to financially support the school near West Dikirnis which opened in 2011 and comprises 28 classrooms for over 228 local children.

In Bulgaria, the Company provides financial and logistical support to Karin Dom, a day centre for the rehabilitation and social integration of children with special needs from the Varna region. The Company also provides support for the staff, funding training and team building events.

2014 HSES Priorities:+-

Our top HSES priorities in 2014 will be:

  • Adoption of the new HSES Management System at country and asset level through a structured implementation process
  • Updating of HSES risk reviews for all countries and assets in accordance with the new Risk Management procedure
  • Enhancement of our HSES performance reporting, utilising appropriate metrics at country and asset level
  • Continued focus on improving the Company’s Corporate Emergency response capability
  • Further improvement of our approach to assessing and implementing social responsibility initiatives