Tullow Oil plc 2011/2012 Corporate Responsibility Report - The Group

ENVIRONMENT, HEALTH & SAFETY 2012 OBJECTIVESMore informationIn 2012, the EHS Strategy Forum reviewed EHS corporate Key Performance Indicators (KPIs) and decided to refocus laggingindicators on ensuring that the organisation learns the ‘free lessons’ from incidents that could have had a major impact on thebusiness, including the most serious category of high potential incidents, significant spills and exposure to malaria.PageChief Executive’s review 10Environment, Health & Safety 623MEASURING OUR PERFORMANCE2012 lagging indicator Rationale 2012 performance target StatusUncontrolled releasesdefined as number ofloss of containmentincidents.To measure the loss of containment of allliquid releases to the environment. Allreleases contained within bunds will beclassified as a near miss.Number of loss of containment incidents(water, diesel, oil, chemicals) >50 litreswith ≤3 incidents.Same as2011Malaria case frequencyrate (MAFR) per 1,000exposures.To monitor the effectiveness of Tullow’smalaria management programme, this KPI isaimed at reducing malaria case incidents innon-immune staff year-on-year by 10%.Reduce case incidents 10% year-on-year per1,000 exposures. The base line is 2011 whichhad an MAFR of 0.34. The 2012 target is 0.30.NEWLevel 4 and 5 incidents(the most seriouscategories).To ensure maximum learning from all Level 4and 5 incidents across the business. Industrystandard safety measures (LTIFR, TRIFR,HiPoFR, VAFR) will continue to be recordedand reported.100% closeout of investigation actions forevery incident.NEWThe 2012 leading KPIs are intended to improve the overall quality and effectiveness of Tullow’s EHS controls and processes.2012 leading indicator Rationale 2012 performance target StatusAction trackingDevelop, implementand roll out an actiontracking system.To ensure visibility and control, a moreeffective global action tracking system isrequired in order to capture, monitor andreport on all EHS actions.Action tracking system defined, in place andfully operational by year end.NEWSafety caseTo enable visibility of the case for safetyfor each operated production facility andensure that safety-critical elements areclearly identified and tested at anappropriate frequency. For operationswith mature management systems,ensure that safety-critical elements testregimes are being achieved.Establish safety cases for all operatedproduction facilities, including definingsafety-critical elements and associated testingregimes. Where already established, set targetfor achievement of test regime. Operatedproduction facilities will set milestones forachieving the KPI. These milestones will beverified through periodic audit.NEWContractormanagementTo ensure that all medium and high riskcontracts have defined and implementedan effective EHS process.Define and establish an EHS managementcontracts register with compliancebecoming part of the Contract Review Boardprocess within the supply chain by year end.NEWTullow OilEnvironmentalStandards (toes)To monitor performance of and compliancewith the new toes standards rolled out inearly 2012.Self-assessment must be completed by eachbusiness unit and/or project by year-end.NEWEnvironmental andSocial ManagementPlansTo ensure that all Environmental andSocial Impact Assessments (ESIAs) haveimplemented an Environmental andSocial Management Plan (ESMP).An ESMP compliance closure report isto be submitted to Group EHS for all projectsthat are completed in 2012, within twomonths of completion.NEWEHS leadership To drive more visible EHS leadership. To be able to demonstrate actions taken,audits will be carried out at mid-andyear-end to verify EHS leadership activityagreed in EHS actions plans.NEW53www.tullowoil.com