Annual Report 2005 (6 MB) - Lundin Petroleum

CORPORATE RESPONSIBILITY
In view of the variety of operations within the Group, the diff erent
locations and structures under which they are operated, either by
Company staff , by service contractors or joint-venture partners,
Lundin Petroleum receives diverse HSE data both on a monthly and
ad hoc basis. The Key Performance Indicators (KPIs) reported on
monthly that Lundin Petroleum uses for the Group’s operated assets
are Fatalities, Lost Time Incidents (LTIs) as well as Oil Spills and Gas
Leaks.
KPI fi gures in themselves do not give a full picture on how operations
are run; therefore monthly reports also include information regarding
HSE training, drills, committee meetings, accident/incident/near
miss reports with root cause analyses, other problems encountered,
remedial measures put in place and initiatives undertaken to improve
HSE performance. As a result, Lundin Petroleum corporate is well
aware, at any given time, of the status of such issues in all operations
and the areas which require closer surveillance or improvements.
KEY PERFORMANCE INDICATORS (KPIs) IN 2005
Lundin Petroleum’s HSE framework has been developed in order to
be able to realise its “zero goal” for all its operations:
■ Zero fatalities
There were no Fatalities among Company staff or contractors in
2005.
■ Zero injuries
The total Lost Time Incident Frequency Rate (LTIFR, per 200,000
man hours) in operated assets in 2005 was 1.19; none of the incidents
were of a serious nature.
■ Zero oil spills or gas leaks
There was one oil spill (9.25 bbls) constituting a reportable oil spill
under Company rules within the operated assets.
HSE ENHANCEMENT INITIATIVES IN 2005
To achieve and enhance HSE performance requires continuous
attention and the search for improvement measures. A number of
steps were undertaken in 2005 with this objective in mind, among
which:
■ External auditing
In 2005, Lundin Petroleum’s operations and facilities in France,
Tunisia and the UK were subjected to third party audits, in order to
ascertain conformity with legal and Company standards and
identify improvement areas (see third party report below).
■ Training
The Company is responsible for providing a safe working
environment for its staff through adequate facilities,
equipment and work procedures. However, overall HSE performance
depends to a great extent on the competence and ability of the
staff to carry out their tasks in a safe manner and in accordance
with legal and Company rules. In order to underline staff ’s
individual responsibility, the Company decided to introduce STOP
training, a behaviour based observation programme which helps
to change staff behaviour by enhancing their observation and
communication skills in its operated areas.
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■ Reducing environmental impacts
The main steps to reduce possible adverse impacts on the
environment are carrying out environmental impact assessments
prior to the commencement of operations and having in place
detailed environmental plans which deal with all potential
impacts. Careful planning and effi cient use of the facilities can
help achieve reduction goals. This was the case in the UK, which is
Lundin Petroleum’s only current area of operations subjected to the
Emissions Trading System (ETS) put in place by the Kyoto Protocol
to the United Nations Framework Convention on Climate Change.
Lundin Britain’s CO 2 emissions were well below its allowances.
■ Monitoring of non-operated assets
Lundin Petroleum’s fi rst and foremost concern is to ensure that it
has a sound HSE system in place in the areas it operates; however,
it is also concerned with HSE performance in non-operated areas. Joint
venture partners are required to have an HSE framework in place
and to demonstrate sound HSE practice. The Company requires
monthly HSE reporting from those entities, in addition to ad hoc
information in the event of an incident which has a detrimental
impact on people, plant or the environment.
STAKEHOLDER ENGAGEMENT IN 2005
As a responsible corporate citizen, Lundin Petroleum is committed
to foster positive relations with its stakeholders. This takes place
throughout the operational cycle from the acquisition of an asset
through to its abandonment.
At the acquisition stage, once the Company has identifi ed a technically
attractive asset it carries out an analysis of the sociopolitical context
in which the operations would take place, identifying the main
problems in the area, the extent to which operations would be
aff ected by or contribute to these problems, and the measures to put
in place to promote a positive outcome.
In the course of operations, Lundin Petroleum - or, in the case
of non-operated assets, its partners - is in contact with a variety
of stakeholders, including host authorities, regulators, local
communities, interest groups, etc. It maintains an open dialogue
with anyone who has a legitimate interest in the area and wishes
to cooperate in contributing to improving the status quo. In areas
where there are particular socioeconomic problems, such as Nigeria,
Sudan or Venezuela, the Company contributes and actively supports
community development projects.
At the abandonment stage, the Company meets with regulators
as well as those to whom the property reverts to agree jointly on
rehabilitation measures.
In some instances there is limited interaction between Lundin
Petroleum and host communities, given that some of the activities
occur off shore or are carried out through operators other than Lundin
Petroleum. The Board of Directors thus decided, at the end of 2005, to
set up a fund to enable Lundin Petroleum to contribute to projects in
areas or fi elds where the Company has an interest, even if those areas
are not directly impacted by the Company’s activities.