Promoting Responsibility. Health. Safety. Environmental Protection. Society.
HSE Annual Report 2014
At a glance.
2014 key performance indicators Unit
2014
20131 14,776
Wintershall performance Sales to third parties
mio. €
15,145
Exploration & Production
mio. €
2,938
2,929
Natural Gas Trading
mio. €
12,207
11,847
Profit from operating companies (EBIT)
mio. €
1,688
2,403
Exploration & Production
mio. €
1,305
1,569
Natural Gas Trading
mio. €
383
834
2,400
2,416
Fatalities (FAT)
0
0
Injury with > 1 day lost time (LTI)
2
5
0.43
0.97
Occupational safety Number of employees 2, 3 Own employees
Lost Time Injury Frequency per one million working hours (LTIF) Total Recordable Injury Cases (TRIC)
9
12
1.92
2.33
Fatalities (FAT)
0
0
Injury with > 1 day lost time (LTI)
2
6
0.47
1.01
Total Recordable Injury Rate per million working hours (TRIR) Contractors
Lost Time Injury Frequency per one million working hours (LTIF) Total Recordable Injury Cases (TRIC) Total Recordable Injury Rate per million working hours (TRIR) Total LTIF / TRIC / TRIR
1 2 3
Figures for 2013 have been adjusted to reflect the not completed asset swap. Excluding temporary employees; part-time employees pro rata. For purposes of readability, no distinction is made in the text between male and female. If we use the male form in this HSE Annual Report, the female form is included.
29
34
6.75
5.70
0.45 / 38 / 4.23
0.99 / 46 / 4.14
2014 key performance indicators (Continuation) Unit
2014
20131
Occupational health Occupational diseases, own employees
0
0
First aiders
590
635
Occupational medical check-ups
747
1,233
Environmental protection Energy Energy consumption Steam use Fuel use for own energy production
MWh el
498,511
661,883
t
507,288
664,487
mio. MWh
1.23
1.38
Greenhouse gas emissions CO 2
mio. t
1.06
1.37
CH 4
t
4,427
4,185
t
3,612
3,358
EUA / a
302,449
596,837
t
462,128
875,415
t
52,631
140,126
mio. m3
29.6
16.8
mio. m3
15.3
11.8
Emission of inorganic substances Emission trading Europe Received emission allowances Emissions from facilities regulated under emission trading scheme Waste Water use (total) Reservoir water
Content
Foreword
2
Company Profile
5
Challenges and Solutions
9
HSE at WintershaLl
22
Safety
30
Environmental Protection and Energy
36
Occupational Health and Work-Life Balance
41
Dialog and Society
46
Contact
50
As the largest German producer of crude oil and natural gas, we are aware of our special responsibility to society. Sustained economic success is impossible without health, safety and environmental protection. It is our aim, and our absolute top priority, to systematically reduce risks for people and the environment.
Rainer Seele Chairman of the Board of Executive Directors
2
HSE Annual Report 2014
Ladies and Gentlemen, In many respects, 2014 was a challenging year. While the conflicts continued in North Africa, the change in power in the Ukraine brought about by mass public protests led to armed disputes right in the middle of Europe and a revival of tensions that were thought to be over between Russia and the West. These are just two examples of events that have affected the world and us, as a global enterprise. We were obliged to again suspend our onshore oil production operations in Libya in view of the unstable security situation there. And given the tense relationship between Russia and Europe, the decision was taken not to complete the asset swap between Wintershall and Gazprom, which has been planned for the end of 2014. But despite these challenges, Wintershall achieved important milestones in 2014. When we concluded our second transaction with Statoil, we came closer to meeting our goal of establishing ourselves as one of the leading oil and gas companies in Norway. Achimgaz, our joint venture with Gazprom, is performing well above all our expectations after a challenging start-up phase. We have already established the complete infrastructure in Siberia under extreme conditions, and have produced ten billion cubic meters of gas. In the Netherlands, we are one of the biggest gas producers, and are now working to add a strong oil component with our F17 find. Our business in Argentina is also developing well. We are currently setting up the infrastructure in Aguada Federal for developing unconventional oil reserves – and work will start on our first Wintershalloperated well in March. Growth is also on the agenda in Germany, where our center of innovation is located. Investments have been made in exploration activities as well as in expanding existing production. Our success in 2014 is also reflected in our financial results. Wintershall increased crude oil and natural gas production to 135.8 (2013: 132) million barrels of oil equivalent (boe). Sales revenue also went up in 2014 by € 369 million to € 15,145 million compared with
Foreword
3
the previous year. Of that figure, € 2,938 million was generated from Exploration & Production and € 12,207 million from Natural Gas Trading. Our economic performance is directly related to our commitment to protecting the environment and people. This can be seen in our accident statistics, which have improved compared with the previous year. The total LTIF of Wintershall, i.e., the lost time injury frequency per million working hours of our employees and contractors, is 0.45. This is one of the lowest rates in the company’s 121-year history. Our commitment associated with our efforts to promote our safety culture is starting to show an impact. Furthermore, we were delighted to receive the Sustainable Development Industry Reporting Award for professional safety and health management in Qatar. Our ambitious target of no accidents in all our activities will continue to apply in 2015. Our new targets are just as challenging: By 2020, the energy management system certified to ISO 50001 should be rolled out to all the company’s locations around the world, as well as the environmental management system certified to ISO 14001 and the occupational health and safety management system OHSAS 18001. In this way, we will make sure that our management system meets the highest international standards. The key prerequisite for our success, however, is the expertise, motivation, and innovativeness of our employees – so it is absolutely essential to look after their health and safety. We will therefore continue to press ahead with these topics in 2015. I am convinced that together we will meet the challenges ahead of us, ensuring the best preparation possible for a sustainable and safe future. Yours
Rainer Seele Chairman of the Board of Executive Directors
4
HSE Annual Report 2014
Company Profile
Success achieved through exploration and production, strong partnerships, and technological expertise.
Wintershall is an oil and gas producer with worldwide operations. It is a wholly owned subsidiary of BASF in Ludwigshafen, Germany. As an international company with German roots, we specifically focus on selected core regions, where we have built a high level of regional and technological expertise. In other words: Europe, Russia, North Africa, South America, and increasingly the Middle East. Wintershall employs around 2,400 employees from more than 40 countries. We invest in the future We have over 120 years of experience in extracting natural resources and have been producing crude oil and natural gas for more than 80 years. Wintershall actively pursues a policy of ongoing investment in the development of new deposits and the expansion of existing fields. To achieve this, we strive for strong partnerships and innovative technologies. The high standards we require in the field of environmental protection and occupational health and safety have equal priority for us alongside our economic objectives. Over the past ten years, we have increased oil and gas production by around 2 percent per year. In 2015, we will expand oil and gas production to over 160 million barrels of oil equivalent (boe). This means that the production will be increased by around 30 percent within a decade. Over the next five years, we intend to invest around four billion euros in expanding our oil and gas business.
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Wintershall relies on strong partnerships Strong partnerships form an important basis for our success. We are accepted and sought after as a partner – for instance in Russia or Norway. Our partnerships are successful because everyone contributes what they are best at, thus complementing the other party. This is clearly reflected in our cooperation with Gazprom and Statoil. With Gazprom, we have been pooling our know-how, financial risks, and business success for over two decades now. Our Achimgaz joint venture is a cornerstone of effective cooperation based on teamwork, trust, and respect. Wintershall is also involved in the Nord Stream pipeline, running from Russia through the Baltic Sea to the German coast. In this way, we are contributing to security of natural gas supply in Europe. This is also one of the reasons for our activities in Norway. With the asset swap concluded in 2013 with Statoil, we have become one of the largest producers on the country’s continental shelf. Wintershall has acquired shares in three producing fields, and has taken over the role of the operator of a large production platform, Brage. Our joint project with RWE Dea off the German North Sea coast is a further example of excellent cooperation. Together with the operator, RWE Dea, we are producing from Mittelplate, Germany’s largest crude oil reservoir, in the middle of the Schleswig-Holstein Wadden Sea. Offshore production in the ecologically very sensitive Wadden Sea is specially designed to prevent impact on the conservation area, so that natural resources can be produced in an environmentally sound way.
HSE Annual Report 2014
Our core regions
Russia
Germany
Europe
North Africa
South America
Technology “Made in Germany” From a technical perspective, the exploration and production of crude oil and natural gas in Germany present particular challenges. In view of the complex geological conditions, it is necessary to deploy highly sophisticated special technical systems. As a result, production in Germany serves as a basis for developing new trend-setting technologies. These “Made in Germany” innovations are used around the world, making our company a valued partner in the international arena. State-owned and private companies trust in our know-how, experience, and reliability – this ranges from our activities in Siberia’s permafrost, through the North African desert, to the South American steppe.
Company Profile
Middle East
Greater efficiency due to innovative methods We apply intelligent technologies to improve the efficiency and environmental performance of our oil and gas production activities. Some of these technologies are already tried and tested methods, such as steam flooding and hydraulic fracturing. Other technologies are remarkable innovations that will achieve their full potential sometime in the future. For instance our research project with the biopolymer Schizophyllan, which is being developed together with BASF. An overarching goal in applying any technologies is to minimize the impact of our activities on the environment as far as possible.
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Since 1981, Wintershall uses steam flooding, to keep the production in Emlichheim on a high level. Thereby our experts press hot steam of 300 degrees with a pressure of 100 bar into the reservoir.
Producing crude oil with steam pressure Steam flooding is one of the innovative technologies, which is already used successfully in the everyday activities as a means of improving oil production. We use it at the Emlichheim oil field near the German-Dutch border, where we have been producing crude oil since 70 years. To keep producing at such a consistently high level, steam at a temperature of 300 degrees Celsius is injected into the reservoir at a pressure of 100 bars. The steam easily spreads out in the porous rock and warms up the dense oil, making it less viscous and therefore easier to extract. This technology is so effective that the production at the Emlichheim oil field will be extended by another 25 years. Channels in the rock to produce tight gas We also boast many years’ experience in the production of tight gas: this is the name given to natural gas that is trapped in poorly interconnected cavities between rocks, and cannot flow freely to the well. Hydraulic fracturing is being used in such scenarios. The method is applied to open up small approximately five-millimeter-wide cracks in the rock through which it is then
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possible to produce the gas. Wintershall has been producing tight gas for over 30 years in Germany, the Netherlands, Russia, and Argentina – without any negative impact on the environment or drinking water. Research into producing oil in an even more effective and environmentally compatible way Our research project with the biopolymer Schizophyllan is enjoying considerable international attention. Schizophyllan is produced from the Schizophyllum fungus (“split gill”), which grows in all the world’s forests. The biopolymer thickens the water injected into oil reservoirs to enhance production. Experts expect that fields which have already been in use for a long time, can so be operated even more effectively. Also in 2015, we will continue with our field trial with Schizophyllan in the Bockstedt oil field in North Germany.
HSE Annual Report 2014
Challenges and Solutions
Optimum cooperation Systematic approach Prospective analysis
10 14 18
Optimum cooperation
pipeline planning preserves sensitive ecosystems Cold water corals often grow in deeper, darker parts of the oceans, where the water may only measure around four degrees – they are true survivors. But what are their chances of survival if transport pipelines carrying crude oil and natural gas are routed right through their habitat? Together with environmental specialists and pipeline engineers, our HSE experts made an effort to ensure that the pipeline system, stretching a total of 100 kilometers from our Maria field off the coast of Norway, bypasses the sensitive corals. The method adopted to plot the optimum route for the pipelines has set a precedent as an exemplary environmental project.
Optimum route through Cold water corals
Production from the Maria field offshore Trondheim is scheduled to begin in 2018. Wintershall is the operator. The automated production facilities will stand directly on the seafloor. Crude oil, natural gas, and condensate are to flow through a system of pipelines to production platforms located 20 to 45 kilometers away. A basic requirement for the pipeline installation is that the vulnerable cold water corals should not be affected. Marine biologists working alongside pipeline engineers 200 kilometers off the Norwegian coast, large colonies of creatures cover vast swathes of the seafloor. Cold water corals manage to survive in these extreme conditions of nature. Their only threat comes from humans. Sea stocks are shrinking due to over-fishing and acidification of the water. Environmental experts are working alongside pipeline engineers to plot a route for the pipelines that does not harm the corals. Normally, an environmental impact study would be carried out, and the results would then be used by the pipeline engineers. But if the planned route has to be changed in a further course of the process, new environmental assessments will have to be carried out. All in all, this process can take up to one and a half years. The Maria field team managed it in just 60 days. Instead of onshore planners and local researchers interacting throughout the process of planning the pipeline route, Health, Safety and Environment (HSE) was fully integrated from the outset. On board of the research ship, which examined the seafloor in offshore Trondheim, an independent marine biologist worked closely to-
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gether with employees of the pipeline construction company. While onshore, the HSE experts of Wintershall helped plan a buffer zone for the corals. The main cause for concern was a chasm presumably cut into the seafloor by an iceberg a long time ago. This was precisely where the pipeline was supposed to be routed, yet the corals are thriving in this eight meter wide and ten meter deep channel – it is where the densest colonies are growing.
“Wintershall demonstrated exceptional willingness to find the most environmentally friendly route possible through the corals.� Success through collaboration With planners coordinating directly with environmental specialists, it was possible to plot a passage through the crevice that was largely free of corals. 20,000 cubic meters of rock were lowered into this plotted route to carry the pipeline. This approach generated a high interest at other companies in the oil-producing industry in Norway. Wintershall was given the opportunity to present this exemplary project to specialists in the sector at a conference organized by the Norwegian Petroleum Society.
HSE Annual Report 2014
The careful planning of the pipeline route protects the habitat of sensitive cold-water corals off the coast of Norway.
The cooperation of environmental experts and engineers on site led to direct and quick decisions.
Challenges and Solutions
13
Systematic approach
Wintershall is committed to energy efficiency and contributes to climate protection Energy is best saved systematically. Wintershall Germany has done exactly that, namely by introducing an Energy Management System, or EnMS in short. We certified all German production sites according to the international standard DIN EN ISO 50001, followed by our headquarters in Kassel in fall of 2014. But this is just the beginning. By 2020, an EnMS will be implemented worldwide. Wintershall is thus committed to energy efficiency, and plays its part in protecting the environment.
Using energy even more efficiently in the future
By 2020, Germany aims to have reduced its carbon dioxide emissions by 40 percent compared with the levels in 1990. This is provided in the climate protection targets set by the German Federal Government. The industry has to make a significant contribution to meet these targets. Wintershall is also participating in this process by taking measures to improve its own energy efficiency. The new management system introduced within just one year is intended to help use energy even more efficiently than before. Management system ensures transparency “We have always taken care of working efficiently and conserving resources,” explains Martin Flörke, Energy Management Officer at Wintershall Germany. “But thanks to our new energy management system which is certified according to DIN EN ISO 50001, we can monitor energy efficiency even more effectively.” The first step toward introducing the system was to carry out an analysis of the current situation. After a full inspection of the terrain and an evaluation of all available energy and plant data, it was possible to draw up action plans and concepts for further measuring and counting procedures. The large technical facilities using a lot of energy were also examined. The EnMS introduction phase included regular training sessions to increase the awareness among all employees of Wintershall Germany about the topic of saving energy.
The collected data provide an excellent overview of energy consumption, making it possible to identify potential areas in which efficiency can be increased. Using this system, Wintershall can develop, check, and where necessary, adjust procedures for exploiting this potential. The EnMS also indicates whether our measures for optimizing the energy use have achieved the intended results. Wintershall has already been able to bring about initial improvements. For instance, the energy efficiency check at the Barnstorf site revealed that the waste heat from the combined heat and power unit was not being used optimally. Appropriate precautions have been taken since, which should result in the 30 percent reduction of gas consumption for heating in the future.
“EnMS means we can monitor energy efficiency and the use of resources even more effectively.” Developing know-how within the company To ensure a resounding success in the sense of achieving a continuous improvement process, EnMS depends on the support from the employees. Therefore, it is necessary to create awareness throughout the company. Training sessions and information events help to further develop the know-how of employees about using energy more sparingly.
The great advantage of the management system is the transparency it creates. It records and evaluates energy flows from their source, through their use, to their consumption. The system can also be applied to carry out a detailed analysis of energy usage by the various facilities and in processes.
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HSE Annual Report 2014
Also equipment with high energy consumption such as the natural gas compressor station in Staffhorst was analyzed.
The continuous monitoring of the energy consumption of the equipment allows optimal use of energy and thereby also cost reduction.
Challenges and Solutions
17
Prospective analysis
Looking ahead to ensure Higher safety
Achimgaz, a joint venture of Wintershall and Gazprom, faces challenging climatic and geological conditions in its natural gas and condensate production activities in the Achimov formation of the Urengoy field in Western Siberia. The formation lies 3,500 kilometers east of Moscow, near the Arctic Circle. In order to double capacity, we want to expand the above-ground infrastructure for processing natural resources, including the UKPG 31 gas treatment facility. Safety is assured by taking measures identified with a method that is not commonly used in this region: a hazard and operability study (HAZOP).
Potential risk factors identified by analyzing Failure scenarios
The hazard and operability study (HAZOP) is a prospective analysis of processes, forming a specific stage in the process of achieving a safe operating plant. The study involves looking at the actual facilities and examining what could go wrong and, if so, what the resulting consequences would be. This method is widely adopted in the oil and gas industry. However, it is not yet common practice in the Russian Federation. Expertise pooled within an interdisciplinary team In Russia, process safety is defined by national legal requirements, which set out specific provisions. They contain detailed descriptions, including the condition of the individual pipelines and valves. These specifications are based on experiences gained from incidents in the past. “With HAZOP, the aim is to identify potential safety risks before they lead to an incident,” explains Georgina Wien, HSE expert at Achimgaz. It was set up an interdisciplinary team charged with examining the risk scenarios involved in expanding the infrastructure of Achimgaz. The team includes representatives from Achimgaz, Wintershall in Moscow and Kassel, and the Design Institute in Tjumen, Siberia. It consist of process and plant technicians, automation technicians, HSE experts, and employees from the operational departments. The expert exchange was coordinated by an experienced moderator.
production operations. In October 2014, the other support facilities were analyzed. Based on these results the analysis team went on to elaborate suggested improvements. These improvements were then put into practice by planners from the Institute responsible for the facility design in Tjumen. Recognise anticipatory risks A HAZOP analysis is generally based on developing complete and realistic scenarios for a possible malfunctioning of the facilities. The approach therefore draws on the wealth of experience and extensive know-how of the involved parties. For our project in Siberia, experts pooled together their expertise and methodological skills as part of an interdisciplinary team. In doing so, they played a key role in ensuring a successful analysis.
“We want to identify potential safety risks before they lead to an incident.” The Russian partners, who are characterized by their comprehensive expertise in producing natural gas at the Arctic Circle welcome the new perspectives on technical issues brought in by the foreign colleagues. Finally high safety standards, above the legal requirements, were set.
The goal was to ascertain: What incidents may occur, and how would the facility respond? For the purposes of the analysis, the facilities were divided into a number of functional groups. For each functional group, the team started by conducting oneweek workshops to examine the infrastructure of the gas and condensate flow in order to identify the main risks in the
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HSE Annual Report 2014
The key question of risk scenarios is: what exceptional loads may occur and how do the systems respond?
At the HAZOP of Achimgaz plants different scenarios were considered and analyzed.
Challenges and Solutions
21
HSE at WintershaLl
HSE as a basis for daily activities HSE management system Voluntarily self-commitments – our activities Award-winning HSE activities Interview with Corporate HSE Manager Guido Schnieders
23 25 26 26 28
We take responsibility.
In all our activities our constant goal is to reduce risks to people and the environment systematically. In doing so, we often go beyond the legal requirements. We use efficient technologies and environmentally friendly processes, while promoting research and development for further innovations. Within the scope of our activities, we emphasize on tailored concepts for the protection of Health, Safety and Environment (HSE), and ensure transparent and open communication.
HSE as a basis for daily activities We strive for a sustainable future. For us, sustainability means combining long-term financial success with social responsibility and the protection of the environment. Our understandings of these topics as well as our key objectives are enshrined in our HSE policy. This includes our commitment to actively contribute to climate protection and to minimize the consumption of natural resources. We have also set ourselves the objective of being an attractive employer, and consider it as our duty to ensure safe and healthy working conditions. We are committed to the principle of good neighborly relations at all our company locations, and aim to communicate openly and transparently with all stakeholder groups. HSE topics – part of project management Each new exploration project generally places high demands in terms of planning. Above all, exploration in unknown regions requires support for the employees and contractors on-site. HSE experts therefore provide support in the work of project teams at an early stage. Their tasks include carrying out feasibility studies
HSE at WintershaLl
for a project, as well as examining environmental and safety aspects. These may be environmental impact assessments and safety reviews, or the selection of contractors on the basis of their HSE performance. During expeditions to the exploration areas our HSE experts identify potential risks, define suitable measures to minimize them and summarize them in an HSE project plan. Our safety engineers regularly steward and monitor the activities during the execution phase of exploration projects. Emergency concepts are constantly reviewed and adapted to the current situation if necessary. Finally, compliance with the relevant regulations and HSE standards is ensured throughout the operating phase. Contractor management – high standards Many projects in the oil and gas industry would be unimaginable without the support of external experts. That is why Wintershall uses contractors in various areas, including large specialist firms to conduct drilling campaigns, construction companies in infrastructure projects, or smaller subcontractors at the administrative locations. We select our contractors not just on the basis of economic criteria. Environmental protection as well as occupational health, safety and social standards are also taken into account in assessing new and existing contractor relationships. The criteria are strictly applied and regularly checked. Regarding compliance with HSE standards, Wintershall places the same high requirements on its contractors as on its own employees.
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Proactive thinking guarantees the best possible emergency preparedness.
Incident management – using efficient instruments Wintershall promotes safety at work and uses a variety of instruments to do so: Risk assessments, procedures, seminars, training courses, and audits. Reporting and investigating incidents plays a key role in prevention and helps to improve the safety performance. For this reason, we have established a reporting system that covers all locations worldwide. Detailed analysis of incidents helps to identify and assess their causes. Incidents where there was a high severity potential are also investigated. Protective measures are derived from the results of these analyses, and are used to increase safety performance in the future.
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Crisis management – optimally prepared The purpose of our HSE management system is to prevent crises. However, the best possible way of responding to unexpected events is to have a clearly defined and interdisciplinary crisis management system. Only a planned and organized approach guarantees the best-possible prevention and combating of emergencies. Plans developed by our HSE experts and regular safety exercises aim to ensure an ideal response in the event of an emergency. Training courses provided by HSE specialists make employees aware of the involved risks, and prepare them for the event of an emergency.
HSE Annual Report 2014
HSE management system 4 steps – 12 elements
well-planned
1
2
I N
notified
sys
S
implemented
tem improved
4
W
3
HSE Management – Systematic Approach The HSE management system we use ensures that all our principles for protecting health, safety, and the environment are always properly taken into account.
Wintershall has set up an HSE management system (WINS) to ensure that all our principles for protecting health, the environment, and occupational safety are adequately taken into account, based on our HSE policy. This management system helps us to reliably achieve what we really believe in: combining commercial success with safety standards, social responsibility, and environmental protection. The management system is based on an internationally recognized standard often used in the oil and gas industry – known as the 12-element-model. These 12 elements are then grouped into four steps. Based on this model, we can ideally implement our HSE policy.
12-element-model
HSE at Wintershall
1 Well-planned: 1. Policy, leadership & commitment 2. Hazards, risks, legal & business requirements 3. Objectives, targets & HSE programmes 2 Implemented: 4. Organization structure, roles & responsibilities 5. Training & competence 6. Communication & consultation 7. HSE MS documentation 8. Operational control 9. Emergency preparedness & response 3 Notified: 10. Incident reporting, investigation & corrective action 11. Monitoring & measurement 4 System improved: 12. Management review & system improvement
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Voluntary self-commitments – our activities The exploration, production, and transport of crude oil and natural gas are activities that involve intervention in the natural environment, and thus this requires particular care. Even before we start our operations, we assess the potential impacts they may have, taking social aspects and the protection of cultural heritage into account. Wintershall is constantly working on improving all its processes to use resources even more efficiently, and to further minimize any impact on people and the environment. HSE-Policy – our understanding Occupational health, safety, security, social responsibility and environmental protection are given top priority. Our guidelines to protect these values are therefore a core element of how we see ourselves and are an important embodiment of the key objectives of our company. Protecting the environment – our principles Our corporate principles substantiate which environmental protection guidelines are taken from the Group’s HSE policy. They illustrate just how important environmental protection is for Wintershall, and govern the company’s environmental management through detailed guidelines. Our goal is to minimize environmental impacts. We protect sensitive habitats and preserve biodiversity. To do that, we apply efficient technologies and suitable methods as part of our business processes, such as environmental impact assessments, inspections, risk analyses, monitoring programs, management reviews, and audits. Domestic production – our voluntary commitment Wintershall works accordingly to the highest standards of transparency, safety, and environmental protection as a matter of principle. We forgo the use of drilling and fracking technology in sensitive regions, such as water protection areas. We also limit our drilling activities to central well sites so as to use as little land space as possible. We do not use hydraulic fracturing in the immediate vicinity of old coal and other mines.
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The hydraulic fracturing liquid we use for fracking does not exceed the currently applicable water hazard class 1 (= slightly hazardous to water). We also regularly test the integrity of our wells’ casings. The safety standards we formulate also apply to all contractor companies working on our drilling rigs. No Flaring Policy Wintershall has committed to stop flaring associated gas in routine operations. Existing facilities have been retrofitted to accommodate this objective and new facilities are designed with integrated associated gas utilization. This saves around two million tons of CO 2 a year. Wintershall therefore meets the highest international standards for environmentally friendly oil production. Human rights – our commitment The Wintershall Group is committed to its responsibility to comply with and to promote human rights. Within the scope of our business activities, we respect the human rights proclaimed by the United Nations and the respective national laws. As a company in the BASF Group, a founding member of the UN Global Compact, we strive to help raise awareness of this initiative in our sphere of influence, and to protect human rights. For this reason, we also support our suppliers and business partners in acting accordingly to this internationally recognized standard.
Award-winning HSE activities In 2014, Wintershall was presented with an award for its excellent HSE activities in Qatar. At the same time, we internally awarded prizes for good ideas and outstanding commitment in matters of safety and environmental protection. Wintershall Qatar – award for outstanding health and safety management Qatar’s Minister of Energy & Industry, Mohammed Bin Saleh Al-Sada, honoured Wintershall with the Sustainable Development Industry Reporting Award (SDIR) in Doha in 2014. This prize is awarded by Qatar’s HSE Regulations and Enforcement Directorate to companies that have performed outstandingly in sustainable reporting and in their HSE efforts.
HSE Annual Report 2014
At the award ceremony, the jury praised our professional approach to the health and safety management.
The Wintershall HS 3E Award rewards motivated employees for their creative ideas and projects.
At the award ceremony, the jury praised our professional approach to the health and safety management in particular. They found our approach to be based on structured processes, which guarantee the well-being of employees and contractors alike. In addition to presenting this award, the jury also appreciated the annual health campaigns and the so-called “Health Performance Index” developed at Wintershall.
In the category “Simple Solutions”, the interdisciplinary and international jury decided to award a team from the Rehden gas production facility. Their project makes auditing work on pressure valves simpler and at the same time safer. In the category “HS 3E Projects”, the award went to colleagues in Barnstorf. Their means of optimizing the well design reduced drastically the number of potentially hazardous tasks on the rigfloor and have been put successfully into practice on Bockstedt 87.
HS 3 E Award – creative ideas rewarded Since 2007, awards have been presented to teams or individual employees, who have shown particular commitment to improving health and safety and environmental protection. Ideas in the categories of “HS 3E Projects” and “Simple Solutions” are awarded. The contest, which took place for the sixth time this year, met a keen response. Employees from Norway, Libya, Germany, Russia and from our Joint Venture Achimgaz submitted projects. The suggestions ranged from improvements in technology and environmental protection to health promotion.
HSE at Wintershall
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“Our goal: zero accidents.” Are there also good news about progress made in certifications? Absolutely. We have made significant progress. We’ve had all locations in Germany certified according to ISO 50001. This is the international standard for systematic energy management. In Libya, we managed to complete the first phase of the ISO 14001 audit. ISO 14001 is the worldwide standard for environmental management.
In an interview with Corporate HSE Manager Guido Schnieders
Which were the specific challenges facing HSE Management in 2014? The security situation in Libya was a big issue. Unfortunately, things have not developed favorably, given the political events there. We had to suspend all employee travel to Libya for security reasons until further notice. However, most of our employees based at locations outside of Libya continued to work, just like they already did in December 2013. And we had good news from Argentina, where we have successfully completed a very challenging exploration project.
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Occupational health and safety are core task areas for the HSE management at Wintershall. How did they perform in 2014? Over the last year, we’ve given high priority to promote our open safety culture and to ensure that it is actually upheld by all employees. As part of the culture, they are encouraged to take personal responsibility for their actions. Management staff obviously plays an important role here. It is their task to promote the safety culture in their respective areas of responsibility. We have organized workshops targeted at the middle management in particular. You introduced a Health Performance Index in 2014. Why? This index provides us with key performance indicators to support us in the process of coordinating health management within the Wintershall Group even more meaningfully than before, especially when considering the special requirements placed on our industry. For instance, we can now quickly and easily identify opportunities for further improvements.
HSE Annual Report 2014
And which further developments were made in 2014? We rolled out a system enabling us to quickly and comprehensively report incidents – the Electronic Incident Reporting System (E-RIR). We also continued with our close involvement in the Oil Spill Response Project. This is a joint international initiative in the oil producing industry, with the aim of developing new technologies and effective methods to prevent and combat oil spills. You must have been pleased about the award given for your HSE activities? Yes, it was great for Wintershall to win the national HSE award in Qatar. But I’m also just as delighted with the HSE commitment shown by our employees, which we reward with our internal HS 3 E Award. In 2014 the teams from Rehden and Barnstorf were the winners. Which tasks is the HSE management facing in 2015? We are launching the process of certification to ISO 14001, ISO 50001, and OHSAS 18001 worldwide. We’ve already talked about the two ISO standards; OHSAS 18001 is an internationally applied standard for occupational health and safety management systems. We’ve set ourselves the target of having the HSE management systems of all Wintershall locations certified according to the three standards by 2020. What is so important about these certifications? We want to make sure that our management system meets the highest international standards. We are also keen to further enhance the quality of our HSE measures and minimize any risks. Last but not least, certification of management systems to internationally recognized standards leads to greater legal certainty around the world. We therefore believe it is important to certify our management systems at all our Wintershall locations.
HSE at Wintershall
The implementation of and the compliance with the HSE standards entails costs. Doesn’t that diminish commercial success? In fact, the opposite is true: high HSE standards are the key to lasting commercial success. Preventing accidents at work pays off in two ways. On the one hand, production remains stable, because no time is lost due to injuries. And on the other hand, healthy employees are efficient and motivated. They can devote their energies to ensuring the success of the company. Our investments in environmental protection are also very worthwhile. In what way? We enjoy international recognition for our operational environmental protection. We are therefore able to demonstrate that we take responsibility and – as a company – help to protect the climate. This is also beneficial in terms of the competition, for example when it comes to project financing and partnerships. Is HSE only a topic for experts within the company, or can all employees make a contribution? It all comes down to the employees. Each and every one of us has a role to play in ensuring that the company follows the HSE policy. We therefore expect everyone to be aware of their responsibility, adopt a proactive approach, and demonstrate personal engagement. The same applies to our contractors – we don’t make a distinction there. What is your primary goal for 2015? Without a doubt: zero accidents in all our activities.
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Safety
Maintaining a high standard of process safety Occupational safety at a glance Risk prevention on the radar
31 32 35
We put safety first.
Safety is Wintershall’s top priority. This encompasses the safety of our own employees and contractors, as well as the safety of people living in the vicinity of our operations. We set a high value on the protection of our facilities and the environment. Responsibility, a proactive approach, and personal commitment from everyone are vital to ensure a high standard of safety in the long run.
Maintaining a high standard of Process Safety The facilities used for the exploration and production of hydrocarbons meet the highest safety standards. State-of-the-art technology is one of the underlying pillars of safety. We therefore invest in new facilities on an ongoing basis, and keep developing existing ones. We take aspects such as health, safety, and environmental protection into consideration in the early facility planning phase. This involves carrying out interdisciplinary safety assessments, facilitated by an HSE expert. Based on these assessments, we can ascertain to make use of the safest technology, the most suitable location, and the appropriate applicable logistics. A tailored HSE concept is created for each project. It contains the relevant safety aspects when planning, constructing, and operating our facilites. This takes into consideration process sequences, layout plans, existing infrastructure on site, weather conditions, and geotechnical information. The concept also involves carrying out inspections before commissioning, and to ensure compliance with safety standards.
Safety
Safety guaranteed through a multi-stage system We have a number of different systems to ensure safety in drilling projects. With eruptive production wells, i.e. wells subject to a high level of internal pressure, we use underground safety valves and christmas trees with a variety of shut-off valves. In this way, we make sure that the well is automatically sealed in the event of an incident. For exploration activities, we use multi-stage blowout preventers (BOP). These systems have a number of safety mechanisms that operate independently of each other, with the aim of sealing the well. They are triggered automatically, mechanically, or by remote control. In principle, Wintershall requires two redundant shut-off systems to be used in exploration. The blowout preventers are manufactured and operated in accordance with the regulations of the American Petroleum Institute and local statutory requirements. In offshore production, we use a system of eight barriers. Each barrier is composed of a combination of safety mechanisms. It begins with the safe design of the facility and covers everything from warning, protection, and shut-down devices to precautions for evacuating the platform in an emergency case. These barriers ensure the overall integrity of the platforms at all times, even if one or more elements fail.
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Highest standards as a basis for our activities For all its activities, Wintershall adheres to the national regulations, international specifications, and its own high standards. If there are several proven industry standards in place, such as those developed by the IOGP (International Association of Oil & Gas Producers) or IADC (International Association of Drilling Contractors), we adhere to the most stringent.
Occupational safety at a glance In terms of occupational safety, Wintershall is one of the most successful companies in the BASF Group as well as in the German E & P industry. Strong safety awareness takes top priority in the company. Also in 2015, our goal is to avoid any kind of incidents.
as to teach people how to respond appropriately to an emergency situation. We also promote safety awareness among our employees by initiating a number of other measures, such as risk assessments, safety rules, workshops, seminars, initiatives, and campaigns. Performance 2014 The accident figures for 2014 went down compared to the previous year. Overall, there were 4 lost time injuries (own employees: 2, contractors: 2). The lost time injury frequency (LTIF) was 0.45 in 2014 (own employees: 0.43, contractors: 0.47). The total recordable incidents frequency (TRIR) was 4.23 (own employees: 1.92, contractors: 6.75). This includes minor incidents.*
With enhanced standards and even greater commitment, we are working to continuously improve our high level of safety. We are intensifying our efforts to create a proactive safety culture and are promoting a strong commitment among our employees. Both management and employees are supporting and implementing our safety culture. Occupational safety is a core component of our day-to-day activities. This includes holding safety discussions at workplaces as well as the ongoing work carried out by safety experts. The aim of our regular training courses is to prevent accidents, as well
* A ll data and input figures presented in this report meet national and international standards in the E & P industry. As a member of the International Association of Oil and Gas Producers (IOGP) and the German oil and gas industry association,“Wirtschaftsverband Erdöl- und Erdgasgewinnung e.V. (WEG)”, Wintershall uses the definitions of both internationally recognized associations when compiling data.
Key Performance Indicators Occupational safety Wintershall
Number of employees1 Working hours
2013
2014
2013
2,416
1,888
2,821 6,019,021
4,682,160
5,141,799
4,294,234
0
0
0
0
Injury with > 1 day lost time (LTI)
2
5
2
6
0.43
0.97
0.47
1.01
9
12
29
34
1.92
2.33
6.75
5.70
Total Recordable Injury Cases (TRIC) Total Recordable Injury Rate per million working hours (TRIR)
32
2014 2,400
Fatalities (FAT) Lost Time Injury Frequency per one million working hours (LTIF)
1
Contractors
Excluding temporary employees; part-time employees pro rata.
HSE Annual Report 2014
The purpose of the seismic survey is to investigate the potential of unconventional hydrocarbon reservoirs.
Successful seismic survey in Argentina with no incidents In August 2014, we completed the exploration based on 3D seismic analyses in Sierra de Reyes, in the Ranquil Norte block of the Mendoza Province in Argentina. Wintershall EnergĂa is the operator there. The exploration was also particularly challenging in terms of HSE.
Safe exploration and appraisal activities in Abu Dhabi Since spring 2014 the first appraisal well has been underway in the sour gas and condesate field Shuwaihat in Abu Dhabi. As operator Wintershall is responsible for the exploration and development of this deposit and can draw on more than 40 years of experience in producing sour gas in Germany.
An average of 120 contractors were involved in an area of 227 square kilometers for 123 working days. There were no lost time injuries and no environmental incidents. Our HSE team was on site throughout the whole period and supported the contractors in their work, providing recommendations concerning environmental protection and safety issues.
The Shuwaihat field places particularly high demands on the exploration and production. The sour gas within the reservoir contains about 20 percent hydrogen sulfide and about seven percent carbon dioxide – two highly corrosive substances that can damage the pipes and production equipment. In addition, hydrogen sulfide is already highly toxic at concentrations of just around 0.05 percent. Each sour gas production program therefore requires a high degree of safety and high-tech equipment.
The local population was informed about the project beforehand. In addition, we produced an environmental assessment and impact assessment report for the entire block and carried out emergency drills.
Safety
Therefore, pipes made of special steel, numerous shut-off valves on the drilling rig and gas detectors were installed to prevent hydrogen sulfide from escaping in an uncontrolled manner.
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At a drill at the gas storage facility Jemgum fire fighters trained the scenario of fighting a pipe leak.
By means of extensive risk analyses, potential hazards are also identified and provide the basis for determining corresponding safety measures, emergency plans, training sessions and equipment specifications. Drills to maximize fire protection in Germany In 2014, a number of large-scale drills were conducted, including drills at the site in Barnstorf, the natural gas storage facility in Rehden, and the Jemgum gas storage facility. Fire protection plays a critical role in the safety of facilities and personnel. The highest level of protection is ensured thanks to our technical safeguards and employee training. Employees are also trained on how to appropriately respond to an emergency situation. By carrying out regular drills at the locations, we can practice and continuously improve internal procedures. The drills also provide an opportunity to improve cooperation with external rescue units and familiarize them with the layout of our buildings and premises.
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Additionally in 2014, the drill scenarios were designed to be realistic and complex in order to enhance the effectiveness of the training. For instance, the company fire department and local fire brigade had to rescue injured people and people in danger, as well as applying fire-fighting measures. Cooperation between the internal and external rescue forces during the drill ran smoothly. Apart from pure training, the objective of the drills was to improve cooperation with the local fire brigades. They help each other out with vehicles and share know-how to their mutual benefit. Risk management “The Right Way” in Norway To guarantee safety, clear organizational structures are required as well as appropriate technical solutions. A new HSE concept, called “The Right Way” has been set up at Wintershall in Norway on the basis of this principle. The concept includes a special risk and barrier management component. This ensures that all HSE interests are integrated into the cost, production, and time planning processes from the outset.
HSE Annual Report 2014
A higher risk awareness is trained in seminars and workshops.
Clear rules are designed to protect our employees.
The aim of “The Right Way� is to identify potential risks in good time and define measures accordingly. This includes arranging organizational aspects and allocating responsibility. Wintershall in Norway fosters the risk awareness of teams by conducting corresponding training and regular workshops, so that they are brought to the awareness of potential risks in their respective work areas.
concepts in order to protect our employees, locations, and the know-how of our company from unauthorized access or risks.
Risk prevention on the radar In the interest of our business activities and to protect employees, it is important to protect ourselves from potential, imminent, or existing hazards and risks. This is particularly applicable in regions of the world in which everyday activities can suddenly change due to political or social unrest.
Production halted in Libya Due to the blockade of export facilities on the coast, onshore oil production had to be halted in July/August 2013 at the request of NOC. In September 2014, Wintershall was able to resume production in Concession 96 in the Eastern Sirte Basin upon NOC approval once the blockades were lifted. Production was stabilised and lasted until December, when fighting near the export ports and renewed blockades had led NOC to declare force majeure and request from companies in the area to temporarily suspend production again. Wintershall constantly monitors the situation in Libya. The security of employees, their families, as well as the production facilities is of the highest priority.
We therefore pay a lot of attention to the protection of our locations and the people working there. At the same time, we take measures to ensure the security of our data. We adopt global
Safety
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Environmental Protection and Energy
Using resources efficiently Reducing greenhouse gas emissions through leading-edge technologies Global environmental protection activities
37 38 39
We use innovative technologies in environmental protection.
We use technical innovations with the aim of using resources efficiently and reducing emissions and waste as much as possible. This applies to all phases of our business activities – from the exploration and development of fields, through to production, and the transport of oil and gas.
Using resources efficiently It goes without saying that we use natural resources efficiently. We face the challenges by acting responsibly, applying high standards, and driving technical innovation. Environmental protection is in our own economic interest. The new or improved methods which we apply for the exploration and production of hydrocarbons are a key factor to our success. These enable us to minimize the impact on the environment. Water Reservoir water, production water, waste water: the exploration and production of crude oil and natural gas faces us with the challenge of using water from a range of different sources. We use innovative technologies and water cycles for treating water in an ecologically way. A total of 29.6 million m3 of water was used in 2014 (2013: 16.8). Most of this volume was reservoir water generated in the process of producing crude oil and natural gas. The volume of reservoir water was 15.3 million m3 (2013: 11.8). Around 10.6 million m3 of reservoir water was fed back into the reservoirs after being separated from the crude oil or natural gas at the surface and cleaned.
Environmental Protection and Energy
A total of 17.3 million m3 of production water from our offshore platforms was discharged into the sea after being cleaned and in compliance with the legal threshold limits. Another 12.3 million m3 of cooling water and 1.5 million m3 of other forms of wastewater was generated, for example during operation of cavern storage facilities, during cleaning operations, and from other sources. At locations where Wintershall is not connected to the public waste disposal network, wastewater is cleaned and disposed of professionally and in line with regulations. Waste management Waste can be generated during the exploration and production of crude oil and natural gas as a result of production processes. We try to avoid such waste wherever possible. Unavoidable waste is recycled and disposed according to regulations. Wintershall also disposes waste professionally and in an environmentally
hazardous waste / non-hazardous waste
26,653 tons hazardous waste
25,978 tons non-hazardous waste
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friendly way in regions where there are no public or private means of disposal. Waste is classified, stored, handled, transported, and disposed in accordance with the applicable legislation of the country in question. In addition, we adhere to international and internal company standards. In 2014, Wintershall generated 52,631 tons of waste (2013: 140,126). Of this sum, 26,653 tons were hazardous waste (2013: 96,856) and 25,978 tons non-hazardous waste (2013: 43,270). Waste is classified into the categories “hazardous waste” and “non-hazardous waste” according to EU regulations. About 37.5 percent of the waste was recycled or recovered as energy, 3.6 percent was disposed in waste incinerators and 58.9 percent in landfills in line with regulations. Energy efficiency We use electrical energy for example to drive pumps and compressors, and as thermal energy in form of steam to produce oil. Depending on the location of our production sites relative to the supply networks, we obtain electricity from the public grid, or produce it ourselves at remote locations. In 2014, we used a total of 498,511 MWh el in electrical energy and 507,288 tons of steam for our processes. We are constantly working on improving our energy efficiency, both in the energy we use and the energy we generate. Examples of this are the highly efficient micro gas turbines in Aitingen and the combined heat and power (CHP) plants in Bockstedt and Emlichheim.
Energy Energy consumption in MWh el
498,511 661,883 Steam use in t
507,288 664,487 2014
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2013
Reducing greenhouse gas emissions through leading-edge technologies Wintershall operates worldwide and wants to contribute to the global climate protection. Apart from complying with international conventions, local laws, and our own standards, we help to reduce emissions by developing and using leading-edge technologies to increase energy efficiency, thus continually reducing the impact on the environment, energy consumption, and also reducing costs at the same time. However, when energy is used, emissions are also created. Energy has to be generated or imported in the form of electricity, process heat, steam, or pressure. As Wintershall often produces crude oil or natural gas in remote areas, we have to generate the energy we need on site. This is normally done by combusting gas, heating oil, or diesel. Other processes in which emissions are created are the discontinuous flaring of associated gas or condensate during production for safety reasons or as part of maintenance measures. Our no flaring policy means that the flaring of associated gas has also been discontinued as part of our routine operations. As a wholly-owned subsidiary of BASF SE, Wintershall reports on environmental emissions relating to the production of crude oil and natural gas, in accordance with BASF’s Responsible Care Reporting Guidelines. As a member of the International Association of Oil & Gas Producers (IOGP), we have also been explaining our environmental emissions in exploration and production as part of the IOGP’s “Environmental Performance in the E & P Industry” report since 2006. Greenhouse gas emissions As a result of our business activities, emissions of the following greenhouse gases are created: carbon dioxide (CO 2), nitrous oxide (N2O), and methane (CH 4). The volume of emissions varies depending on the type of activities being carried out. For example, projects such as developing new fields, constructing link pipelines, or carrying out maintenance and repair works
HSE Annual Report 2014
affect the volume of greenhouse gases. We record and control all emissions into the air in accordance with legal requirements and our own company standards.
Emissions of other substances in t
2014
2013
Total inorganic substances
3,612
3,358
Carbon monoxide (CO)
1,203
1,403
Nitrogen oxides (NO X) as NO 2
2,164
1,717
245
237
1,959
1,633
38
26
Inorganic substances
In 2014, we released less greenhouse gases than in the previous year. Emissions decreased by about 22 percent compared to 2013. The production operations of the Wintershall Group caused 1.06 million tons of CO 2 (2013: 1.37) and 4,427 tons emitted of CH 4 (2013: 4,185) emissions. In terms of Wintershall’s production of crude oil, natural gas, and condensate, specific emissions amounted to 0.06 tons of CO 2 /toe (2012: 0.06). The reduction in the emission of greenhouse gases is mainly a result of the temporary closure of production in the Libyan Desert due to the political situation. Furthermore GASCADE was retroactively deconsolidated in accordance with IFRS 10 for Wintershall Reporting as of 1 January 2014.
Source of CO 2 emissions
Sulfur oxides (SO 2 + SO 3 ) as SO 2 Organic substances Non-methane volatile organic compounds (NMVOC) Other substances Particulate matter
Emissions trading at Wintershall In Europe, 7 plants within the Wintershall Group are subject to the legal requirements of emissions trading. They include three production platforms in the Netherlands as well as the installations in Germany and the Norwegian production platform Brage.
in t
2014
2013
Source of CO2 emissions Production processes Indirect (import / export of electricity / steam) Direct (electricity and steam production)
746,426
954,898
60,755
103,390
254,896
309,649
4,427
4,185
In 2014, our plants were allocated 302,449 emissions allowances (EUA / a). Overall, our plants emitted 462,128 tons of CO 2.
Global environmental protection activities
Source of CH4 emissions Production, undifferentiated
Emissions of other substances In addition to emissions of greenhouse gases, we also identify the emissions of inorganic gases, such as carbon monoxide (CO), nitrogen dioxide (NO 2), and sulfur dioxide (SO 2), as well as other substances. These emissions are primarily attributable to the combustion of natural gas, heating oil, and diesel to generate power. Emissions of inorganic substances in 2014 rose to 3,612 tons (2013: 3,358).
In 2014, Wintershall implemented successfully a large number of measures worldwide, with the aim of protecting the environment and climate, and using natural resources responsibly. A study confirms the environmental compatibility of Achimgaz activities Achimgaz, the joint venture between Wintershall and Gazprom in Russia, arranged a comprehensive social and environmental impact assessment, which was carried out in 2014 by the independent certification company ERM. It examined the impact of the entire field development of block IA in the Achimov formation of the Urengoy field. In doing so, it was noted that many technical and operational control measures had already been implemented at the project planning stage in order to avoid potential impacts.
Environmental Protection and Energy
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A certified energy management system ensures the efficient and environmentally friendly use of energy.
Via the employee suggestion system everyone can propose some energy efficiency measures.
Certified energy management at all locations in Germany In Germany, we have set up an energy management system (EnMS) at our headquarters in Kassel as well as at all operating sites. The system has been certified according to DIN EN ISO 50001. EnMS plays an important role in ensuring that energy is used even more efficiently.
Environmental experts exchanging know-how Each of our locations have specific experience and know-how with respect to environmental protection. Wintershall has therefore set up a company-wide group of environmental experts to pool this knowledge. The annual Environmental Expert Meeting is now conducted as a central forum for exchanging experience and know-how. The core theme for the Meeting in 2014 was radiation protection.
High standards in Libya Wintershall is the first company in the E & P industry, which plans to certify all its Libyan sites accordingly to the internationally recognized standard for the environmental management system, ISO 14001. Despite the current political situation, we have successfully completed the first phase of the ISO 14001 audit in Libya.
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HSE Annual Report 2014
Occupational Health and Work-Life Balance
Prevention and health promotion Effective work-life balance Worldwide health campaign for strong backs
42 43 44
We provide a health oriented working environment.
People come first at Wintershall. After all, only healthy and motivated employees can be productive and creative. In this way they contribute with their high performance and creativity to the economic success of the company.
Prevention and health promotion The aim of our occupational health protection activities is twofold: on the one hand, we want to prevent our employees from having their health impaired by their work. On the other hand, we want to maintain a high level of health. We focus on three key areas: 1. Occupational health prevention, 2. Health promotion, 3. Effective medical treatment in the event of an emergency. From immunization to first aider training Wintershall extensively promotes and supports occupational health. This includes preventive examinations, health consultations, medical treatments, and workplace inspections. We also offer our employees regular vaccinations against influenza. In 2014, many colleagues took advantage of this. To ensure that first aid can be administered if there is a medical emergency, there are 590 first aiders and paramedics at the Wintershall Group’s locations who hold a nationally recognized certificate in first aid. Wintershall encourages the employees to attend first aid courses and courses for company first aiders
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held by the German Red Cross. The company takes care of the registration and also bears the costs. Fitness program in the workplace The range of sports activities, which we offer, is wide: tennis, football, rowing, volleyball, and basketball, not to mention health and fitness training, such as yoga and back fitness sessions. Employees can use the cutting-edge exercise equipment in the company’s own gyms at any time. Over the summer months, outdoor activities are offered, such as Nordic walking, running, and mountain-biking. Occupational health in remote regions It is particularly important to ensure the health protection of our employees and contractors who are working in remote regions under extreme climatic conditions. The local medical infrastructure in these areas often does not meet international standards. And in some regions, there is no medical infrastructure at all. In such cases, we design special preventive measures very carefully in order to avoid potential health hazards as far as possible. Medical care by a company physician or a certified institution is provided at all locations. Wintershall also regularly runs health campaigns to offer an additional information source for the employees and to raise their awareness of the health issues. Topics covered by these campaigns include skin cancer screening, lack of exercise, or healthy nutrition. As a globally active company, Wintershall fully prepares its employees for trips and assignments abroad. This involves regular travel advices, vaccination recommendations, and information
HSE Annual Report 2014
on countries of destination. A special HSE checklist is used to prepare employees for trips abroad. The package also includes risk assessments, procedures, and emergency cards for each location. Our occupational health performance in 2014 Looking back at our occupational health activities in 2014, we can say that things went positively. As in previous years, no employees developed an occupational illness in 2014. This is not least due to 747 occupational medical examinations, which were conducted to ensure prevention and early diagnosis of work-related illnesses and preparation for work-related stays abroad. Together with HSE experts, company physicians at the individual locations and business units of Wintershall analyze working areas in order to minimize the risks to employees’ health. In addition, special inspections are carried out at the locations by supervisors and HSE managers, in accordance with the requirements set by the HSE management system. Health Performance Index (HPI) introduced In 2014, we launched the Health Performance Index as a new key performance indicator. This index will be determined for the first time in 2015.
Effective work-life balance Our employees are our capital and our most important resource. Each and every one of them contributes to the success and development of the company. It is therefore important to ensure that they stay committed and motivated in the long term. Maintaining a balance between work and life therefore plays an important role. Competent support With our Work & Life Services at the headquarters in Kassel, Germany, we offer expert advice and practical support for the various issues involved in reconciling work, family, and health. Wintershall provides employees with support in a variety of areas, so that a balance between work and personal life can be maintained. These include the following: −− Household services, −− Parental leave, −− Caring for elderly relatives, −− Returning to work, −− Relocation services, −− BEFIT @ Work (company sports activities), −− Work-life management seminars, −− Flexible working time models, −− Sabbatical.
The HPI uses five indicators to show the extent to which we have managed to implement our occupational health requirements in practice. We can therefore detect improvement potential in a timely manner and act more quickly as a result. All five indicators are ranked equally. These are as follows: −− Recognized occupational illnesses −− Medical emergency planning −− First aid −− Preventive medicine −− Health promotion
Occupational Health and Work-Life Balance
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Worldwide health campaign for strong backs.
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Health campaigns are regularly held to give employees the opportunity to learn more about health issues and take actions to maintain and improve their own health. Good physical condition is a prerequisite for remaining fit and healthy in the long-term.
The aim of our health campaign was to prevent back complaints or – if people already had backaches – to prevent them from becoming chronic. As part of the campaign, information and exercises were provided to relieve strain on the back at the workplace.
In 2014, our global health campaign focused on the topic of “healthy backs”. The reason was that back problems are one of the most common physical complaints for people working in offices. Sitting at a desk for long periods of time, without getting up to move around, is a key factor in the recurring or persistent back pain from which more than twelve million people suffer only in Germany.
Employees at all Wintershall locations were able to choose from a broad range of offerings, from lectures on the subject to individual back and relaxation exercises. Individual assessments of workplaces were also carried out and adjusted in line with ergonomic criteria. Theraband sessions, exercises at the workplace, and massages were an interesting but also a useful way to complete the range of offered services.
Strong back and abdominal muscles are one of the most important prevention of back pain.
Many of the exercises are easy to apply in the office.
HSE Annual Report 2014
The kindergarten in Barnstorf offers early learning initiatives for two to six year old children.
An employee brings his twin sons to the WIKI daycare in Kassel, Germany. They offer a full-day care for children from six months to six years.
Flexible working time models In its working time regulations, Wintershall is moving away from old fashioned practices in order to achieve the best possible balance between the world of work and people’s individual lives. The system of trust-based working hours has been in place since 1996, offering employees flexibility in meeting their professional and private obligations. It goes without saying that we offer adjustable working time models, such as part-time working, teleworking, and job-sharing.
In-house child care facilities Wintershall has grown considerably over the last few years. The demand for child care has therefore grown accordingly. 140 places for children between the ages of 6 months and 12 years are available to our employees. The child care facilities offer flexible daycare options, shared places, homework super vision, and a play area suitable for all age groups. Over the course of the years, it has become a second home to young children.
In 2014, we also agreed to collective agreement for staff wishing to take a sabbatical leave. Since then it is possible to take a sabbatical between 3 and 9 months. Of course, there is the guarantee to return to the same job.
Occupational Health and Work-Life Balance
International primary school in Kassel In September 2014, the first international primary school in Kassel was opened. This private all-day primary school, which is supported by Wintershall, offers bilingual lessons as well as day-to-day school life in German and English. This education opportunity is not only aimed at children of Wintershall employees, but is of course also open to international and local families from the region who are interested in a bilingual education.
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Dialog and Society
In continuous dialog with our stakeholders Sponsoring the arts and education
47 49
We maintain an open dialog and contribute to regional development.
Wintershall sees itself as a responsible part of the society. Widespread social acceptance is crucial for our activities and corporate success. It is therefore important for us to know and understand the interests and expectations of as many stakeholders as possible. At the same time, we feel connected with the regions in which we operate. We see ourselves as a good neighbor that supports dialog and commits to the community.
Taking the concerns of neighbors and residents seriously Large-scale industrial projects not only need to be approved by the authorities, they also have to be accepted by the general public. The public expects to receive extensive information as there is now a rising sensitivity regarding projects that interfere with nature, the landscape, or settlement areas. Only when local communities are convinced of a project’s value and feel that their fears and concerns are being taken seriously, a dialog can really work.
In continuous dialog with our stakeholders
We make sure landowners, residents, and other interested parties are involved in the planning and implementation of projects at an early stage. By doing so, ambiguities can be cleared up and conflicts prevented. This is the only way for trust to grow, leading to good neighborly relations and even mutual support. The model adopted for community communication proved its success in 2014 as well.
Our business brings us in contact with many different stakeholders – business partners, political decision-makers, scientists, neighbors, and the general public, media, non-governmental organizations and investors – all of which have a growing interest in information and dialog. We therefore make an effort to maintain close contact with them, keeping them regularly informed of our performance and the company’s activities. When doing so, we adapt the formats to the specific stakeholder groups. This dialog helps Wintershall to identify possible critical issues relating to individual projects in a timely manner, and to detect new trends and social developments. The information we receive through this dialogs will be incorporated in the further development of our projects.
Dialog and Society
Open dialog in Bockstedt Wintershall Germany organized various events to inform residents in Bockstedt near Barnstorf of the plans to carry out seismic surveys. The aim was not just to explain about how the geological surveys would be carried out. Colleagues also provided extensive information on the history of oil production in Bockstedt and the Schizophyllan research project. Residents and interested parties were also given the opportunity to see a vibro truck in action and to take a look at the drilling equipment, GPS devices, and geophone strings.
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Citizens used the opportunity to get to know the devices for seismic exploration in Bockstedt at Barnstorf.
Residents were informed in a direct dialog about the exploration drilling.
Visits of drilling sites in Bavaria After oil production in the foothills of the Alps was suspended in the 1980s, Wintershall Germany drilled a number of exploration wells in Lauben in 2014. A citizens’ event was organized, where more than 300 residents could find out more about crude oil production in Bavaria. They visited the well site and had the opportunity to discuss related questions with our experts.
Transparency initiative in the extractive industries In 2014, the German Federal Government took the first steps in preparing for the German accession to the international Extractive Industries Transparency Initiative (EITI).
Dialog and transparency in Abu Dhabi As the well in Shuwaihat borders a densely populated area, Wintershall enabled a dialog with the neighbors there, too. Around 200 residents accepted the invitation of our partner ADNOC (Abu Dhabi National Oil Company) and Wintershall to the first citizen’s information event in the region. At the event, detailed information was provided on the planned wells and drilling site as well as on issues such as sour gas and safety zones that have been established. Further information on the project can also be obtained via a local hotline.
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The aim of the EITI is to increase transparency about cash flows and government revenues from the commodities sector. This should enable public dialog on government revenue and the use of funds from the production of natural resources. To this end, companies involved in the production of commodities disclose their payments (tax payments, royalties, etc.) to the government authorities, who in turn publish the data on received revenues. Wintershall supports the introduction of the EITI standard in Germany. After all, openness as regards to taxes and royalties is part of our transparency policy and reflects the economic importance of our industrial segment.
HSE Annual Report 2014
We are therefore also involved in the multi-stakeholder group, which plays a decisive role in the process of implementing the EITI standards in Germany. The group is made up of five members each from government, industry, and non-governmental organizations. Wintershall is the only company representing the oil and gas industry. Scientific cooperation The Scientific and Technical Cooperation is a joint project between Wintershall and Gazprom. The cooperation promotes sharing of experience and know-how between the two companies. Employees of Wintershall, Gazprom, and BASF research and develop innovative solutions on a wide range of topics across all companies. Such topics include energy savings, development of gas and gas condensate reservoirs, and increasing efficiency when planning, implementing, and running infrastructural projects. Aspects of environmental protection and environmental security are also included. In 2014, the cooperation focused on the safety of onshore and offshore facilities.
Encouraging young talents in science To get as many children and young people as possible enthusiastic about science, Wintershall supports educational and research projects at schools. A donation to the Gene Lab at the Herder School in Kassel, Germany, enabled the purchase of new equipment. As a result, students from Kassel and the region will be able to carry out experiments on scientific subjects in the future. The new bought equipment includes heating blocks and an ultracentrifuge, which are both used in biology lessons. Young people are also encouraged to carry out their own experiments in the research lab, and can take part in the German young scientist competition (“Jugend forscht”) with particularly exciting projects. Through another donation, we are supporting the Pupils Research Center in Hesse, Germany, in the purchase of new computers. The center is located on the school premises of the “Albert-Schweitzer-Schule” in Kassel and is available to 25 schools from the region. Back in 2012, we made the purchase of new equipment possible.
Sponsoring the arts and education Sponsoring cultural and social projects is not a luxury for Wintershall, but an expression of its social committment and active steps to enhance quality of life. In cooperation with professional partners, we focus on projects in areas such as arts, education, and science. Norwegian-German art exhibitions in Oslo Wintershall was the main sponsor of the trailblazing exhibition titled “Alone with Nature – Dahl’s and Friedrich’s Landscapes 1810 – 1840” in the Norwegian capital of Oslo. The exhibition was on display at the National Gallery from October 2014 to January 2015. It showed paintings by Norwegian Johan Christian Dahl (1788 – 1857) and German Caspar David Friedrich (1774 – 1840), two of the most important painters of the Romantic period. Around 50,000 people came to see the exhibition, making it one of the most visited exhibitions in the history of the National Gallery. It is now the second successful project we have implemented in collaboration with the Oslo National Museum. Two years ago, Wintershall was the main sponsor of the first exhibition of works by Emil Nolde at the National Gallery.
Dialog and Society
Young Visions Award Together with Gazprom International, Wintershall Russia initiated an award for young scientists, called the “Young Visions Award.” It is directed at students from Germany and Russia. The contest’s objective is to reward ideas that aim to reconcile financial and ecological interests in oil and gas production. In 2014, we again invited students to develop innovative concepts for the environmentally friendly production of oil and gas. An up-and-coming scientist from Freiburg convinced the jury with his concept in the final round. His project idea is to use the Brinell hardness test as a test method to answer the question of how hard the proppant used in fracking is pushed into the surrounding rock.
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Contact
We look forward to receiving your questions, suggestions or comments on the HSE Annual Report 2014. Wintershall Holding GmbH Friedrich-Ebert-Straße 160 34119 Kassel Germany Phone: + 49 561 301 - 1757 Fax: + 49 561 301 - 1027 hse @ wintershall.com www.wintershall.com
About this report Wintershall started to publish an annual HSE Report in 2009. The reporting period is from January 1st to December 31st. This year’s report is available as a PDF document in German and English and can be downloaded from the Wintershall website.
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HSE Annual Report 2014
Imprint
Reponsible for the content Wintershall Holding GmbH Friedrich-Ebert-Straße 160 34119 Kassel Germany Concept of content and coordination Xenia Alekseeva, Wintershall Holding GmbH Andrea Geicke, Wintershall Holding GmbH Concept and design Heisters & Partner, Corporate and Brand Communication, Mainz, Germany Translation Leinhäuser Language Services, Unterhaching, Germany Photography Morten Berentsen (Cover) Christian Burkert (p. 8, 17, 40, 48) Michael Dannemann (p. 2) Sven Döring (p. 14, 40) Dominik Gigler (p. 48) David Hecker (p. 24, 34, 35) Justin Jin (p. 18, 21) Alejandro Kirchuk (p. 33) Thor Oliversen (p. 10, 13) Bernd Schoelzchen (p. 27, 28, 44, 45) Wintershall (p. 13, 27, 35) Print Werbedruck GmbH Horst Schreckhase, Spangenberg, Germany