HSE Annual Report 2010 (English)

10/11Systematic HSE –Successful and safe.Wintershall has laid down its position on HSE(Health, Safety and Environment) in a policy. Thispolicy governs how the company operates withinthe global oil and gas industry. The key objectivesof the company’s HSE policy are:• Integration and continuous improvement of HSEin all activities.• “Everyone counts” – rigorous implementation ofthe HSE guidelines by all employees.• Living up to our social responsibility.• Responsibility for global climate protection.• Compliance with international conventions, locallaws and our own standards.Well-plannedImplementedNotifiedSystem improvedIn order to achieve these objectives HSE has to beeffectively integrated in all activities. This is ensured bythe WINS health, safety and environment managementsystem. It consists of 12 elements, subdividedinto planning, rollout, reporting and system improvement.The management system is designed so thatHSE is integrated appropriately and the businessobjectives can be achieved.HSE Award Winners 2010

The HSE Award – A prize forinnovative employee ideas.Innovative solutions for improvement of health,safety and environment are rewarded at Wintershall.The company has been conferring an HSE Awardsince 2007, a prize for outstanding projects in thefield of protecting health, safety and the ecology.An award category for “Simple Solutions” – a smalland smart solution that has a perceptible impacton everyday work through minor changes – wasadded in 2010.The HSE Award rewards proactive and creativemeasures that have been successfully implementedat the company during the contest period andhave resulted in a clear improvement in the field ofHSE. An additional criteria for the reward is whetherthe solution can be applied at other locations.The aim of the contest is to improve our high HSEperformance continuously. Each entry is an enrichmentfor the whole company’s HSE performance,since all the solutions are communicated within thecompany worldwide. Therefore they can be takenup by other teams and developed further.In line with the HSE mission statement “Everyonecounts,” all employees are urged to join in and submitinnovative ideas from their team. The award isintended as an additional incentive – above andbeyond the company suggestion system – foremployees to become involved in HSE and isaccompanied by a tax-free cash prize.The winners are chosen by an evaluation committeeconsisting of ten permanent jurors and representativesof the winning teams from the previous contest.The jury examines all entries and assesses them onthe basis of set criteria – the most important beingthe project’s benefit for health, safety and theenvironment. Others include the HSE solution’spro-activity, personal initiative and team spirit.HEALTH SAFETY ENVIRONMENTHSE-Award 2010.22 entries were submitted in the 2010 competition,eight in the category “Simple Solutions“. The awardin the HSE project category was conferred to ateam from Libya that had worked on a way to improveprotection of anchor pipes at wells againstexternal corrosion in the Libyan Desert for threeyears. The solution includes an innovative coatingand intensification of pipeline checks. The winner inthe “Simple Solutions” category is based in WintershallNetherlands. He developed a door stopper for containers,a hook-shaped device that prevents thecontainer doors from suddenly being blown shutby the wind and so increases work safety.

In the past years contractor incidents were reoccurringevents. What do you think is the reason?We believe the sharp increase in demand for skilledworkers is having a negative impact on the qualificationand experience of staff and thereby on safety.That’s why we have to work with our partners toachieve a high standard of training once more in theoil and gas industry. In addition, we will rigorouslyenforce our contractor management processes,i.e. assess the HSE performance of external companiesbefore awarding contracts to them andconduct information and training events.The “E” in HSE stands for environment. What arethe challenges here?Wintershall increasingly explores for new reservesin areas that are ecologically or culturally sensitive.That’s why we analyze the effects on people andthe environment precisely beforehand and definemeasures to minimize the impact. That also includespreserving the cultural heritage. Protecting theenvironment also means efficient use of naturalresources. That’s why we constantly strive toimprove the energy efficiency of our facilities.Wintershall minimizes health risks at work. It alsooffers events providing information on health andcancer prevention. Isn’t that the employees’ ownbusiness?No. We want to keep our staff’s health at a high level.Prevention and information play a vital part in that.In the case of cancer of the intestine, for example,experts attribute the large number of people withthis disease to a lack of knowledge about preventionand early screening. And the same with exercises:We want to motivate our employees to walk8,000 to 10,000 steps a day to avoid being overweightand the related illnesses.

14/15HSE –

Our actions.Just about everything we do or plan influences people and the environment in someway or other. That’s why we have fully integrated HSE in our activities.

16/17Healthand Safety.Responsibility and safety are fundamental values that form thebasis for our corporate philosophy. Employees’ safety is Wintershall’shighest priority – whether they are our own or from contractors.Responsibility, pro-activity and personal comittment from everyoneis vital to ensure a high standard of safety in the long term.Our managers take on responsibility for their employees so thatevery single one of them feels safe at work and returns back homehealthy. The same also applies to our contractors, who have tomeet strict requirements and are also actively supported in theirHSE work.Wintershall is a company where people come first. That is becausehealthy and motivated employees can contribute to thecompany‘s success with their capabilities and creativity.

Project management –A glimpse intothe future.Wintershall has many years of experience in developingreservoirs that are difficult to access and aregeologically challenging. Every new explorationproject therefore places high demands on planning.Above all, exploration in unknown regionsrequires particular support for the employees andcontractors on the ground. That is why HSE expertssupport the project teams from an early stage.Apart from feasibility studies for a project, examinationof environmental and safety aspects is anintegral part of planning. This includes environmentalimpact studies and plant safety analyses, as wellas selection of contractors on the basis of HSEconsiderations. It is also necessary to assess risksin remote regions, such as car accidents on unpavedroads, endemic diseases, unsafe food and drinkingwater, logistics problems, the climate, crime, violentattacks or political unrest. During advance expeditionsto the exploration area, risks are identified andsuitable and concrete measures to minimize themare determined and summarized in an HSE projectplan. As part of this, specialists evaluate the standardof medical care, test communication by satellitephone, identify landing strips for aircraft or examinethe quality of the water in available wells. Safetyengineers regularly supervise and control activitiesduring the execution phase. Emergency conceptsformulated at the outset are constantly reviewedand adapted to the current situation if necessary.Compliance with the relevant regulations and HSEstandards is ensured in the operating phase. Allprojects at Wintershall are planned and carried outaccording to the same HSE procedures.HEALTH SAFETY ENVIRONMENT

18/19Incident management.Wintershall promotes safety at work through riskassessments, procedures, seminars, training coursesand audits. Reporting and investigation of incidentsplays a key role in prevention and helps increase thestandard of safety even further. Wintershall has establisheda reporting system that includes all locationsworldwide and that does not make a distinctionbetween its own employees and those of contractors.Detailed analysis of incidents helps identifyand assess their causes. Incidents where there ismerely a risk potential are also investigated. Theresults are used to derive measures to protectagainst such incidents occurring in future and arecommunicated every month.Insights.SAM – system for recording safetyrelatedsituations.An important aid in safety work has been developedfor Wintershall Deutschland in the shape of thereporting system SAM. SAM is an abbreviation for“Situation, Assess and Measures”. Its objective isto enable prompt preventive measures to counteractsituations where there are risk potentials and nearaccidents. Best-in-class examples are also communicatedusing the system. Another objective ofit is to improve awareness for, assessment of andreadiness to communicate unsafe situations. Reportsare stored in a database after being received.A working group in Kassel regularly deliberateson measures to implement the suggestions andimprove the system.Crisis management.Wintershall’s HSE management system is aimed atavoiding incidents. However, to respond to unexpectedevents, Wintershall has an end-to-end,clearly defined and interdisciplinary crisis managementsystem comprising strategies and measuresto tackle incidents. The system is embedded in theexisting management structures. Only a planned andorganized approach guarantees the best-possibleprevention and control of emergencies. Emergencyplans, regular safety exercises and annual drills formajor incidents aim to ensure an ideal response.Training courses help sensitize and prepare employees.HSE experts are responsible for drawing up,maintaining and supervising the measures anddocumentation for emergency planning.Insights.Establishment of an emergencyresponse association.Almost 40 new companies have qualified as operatorson the Norwegian Continental Shelf since2000. These companies will account for a significantproportion of exploration work in Norway during thenext few years. To ensure safety in offshore production,there are organizations that can respondrapidly to dangerous situations.At the initiative of Wintershall Norge and in cooperationwith the Norwegian Oil Industry Association(OLF) and other companies, a concept to set up aprofessional emergency prevention center for thenew companies operating on the continental shelfwas developed. A feasibility study confirmed theassumption that it would be able to offer a higherqualityand more cost-efficient emergency servicethan the solutions currently available on the market.The Operators’ Emergency Response Association(OERA) was founded in June 2009 and a joint centerwas set up with ten employees. The obvious advantagesof a permanent emergency response organizationare greater safety thanks to improved qualityand training of staff, as well as the fact that there isone and the same organization for all activities.

Contractor management.Many projects in the oil and gas industry are unimaginablewithout the support of external experts.That is why Wintershall uses contractors in variousareas, including large specialist firms to conductdrilling campaigns, construction companies in infrastructureprojects or smaller subcontractors at theadministrative locations.Wintershall‘s selection criteria for contractors arenot limited to economic aspects. Environmentalprotection and work safety standards are also takeninto account in assessing new and existing contractorrelationships. As regards compliance withHSE standards, the Wintershall Group places thesame high requirements on its contractors as onits own employees. Consequently, the companyapplies strict criteria in selecting them.Extensive prequalification to examine a firm’s HSEperformance is conducted before the contract isawarded. This comprises an assessment of thecontractors on the basis of the HSE documentationsubmitted. Information events are also held togetherwith the contractor companies. The objective is toinform contractors of Wintershall’s requirements,train them and give precise recommendations tothem in relation to HSE and through this help themimprove their HSE performance.Audits complement these measures. As part ofcontractor management, Wintershall’s contractorsmust also furnish proof of their HSE performancein further regular audits. The audits are conducted bya team of HSE experts and an operational specialistfrom the field of work. The findings are complementedby continuous on-site inspections.HEALTH SAFETY ENVIRONMENT

20/21Plant andprocess safety.In addition to investments in exploring, developingand producing resources, the expansion of technologicalknow-how is the basis for securing thesuccess of our company. The ability to overcomechallenging geological conditions and in particularapply innovative exploration, drilling and productiontechnologies is a key aspect of Wintershall’s technologicalexpertise, especially in its core regions.Worldwide, Wintershall operates facilities for exploring,producing and transporting crude oil andnatural gas that comply with the very highest safetystandards. The company invests continuously inthe construction of new and further developmentof existing plants. It is crucial for plant safety to bestate-of-the-art at all times. Availability and efficiencyare also highly important. As early as the planningstage, aspects such as health, safety and theenvironment are integrated in a multi-phase process.So that all facets can be taken into account, plantsafety reviews – for the most part interdisciplinaryin nature – are conducted and headed by an HSEexpert. Apart from identification of the measuresneeded to protect people and the environment,decisions on the safest process technology, a suitablelocation and logistics are taken. A tailor-madeHSE concept containing the points of relevance tosafety in planning, constructing and operating thefacility is created for each project on the basis of processes,site plans, the existing local infrastructure,weather conditions and geotechnical information.Implementation of the concept is reviewed beforethe plant is commissioned. A further component ofplant safety is inspections to check compliancewith safety standards.A multi-stage system ensureS safety.For drilling projects special demands on safety andenvironmental protection have to be taken intoconsideration. It is therefore necessary to definethe HSE rules and responsibilities for the projectsin advance and as precisely as possible so as to beprepared, in particular for unforeseen occurrences.Alongside the very highest technical standards, thisincludes emergency plans backed by regular drills.The company-wide HSE management system“WINS” and the Well Operations Policy are appliedin all Wintershall activities, thus guaranteeing that thehighest standards are adhered to. This is ensuredby regular reporting, inspections and audits.With the help of different systems it is possible toensure safety during drilling projects. Free-flowingproduction wells are protected by a subsurfacesafety valve and a Christmas tree with numerousclosing valves, ensuring that the well is automaticallyshut in if an incident occurs. Multi-stage blowoutpreventers equipped with several independentlyoperating safety devices to seal the well are usedin exploration and can be activated automatically,mechanically or by remote control. As a minimum,Wintershall requires two redundant shut-off systemsto be used at all times in exploration. In offshoreproduction, an eight-stage barrier system is used,each with a large number of safety systems. Thesebarriers ensure the overall integrity of the facility atall times, even if one or more elements fail.

Fracing: A worldwide proven technology.Various factors determine how fast and for howlong oil or gas can be produced from a reservoir,including the geological structure of the reservoir,the porosity and permeability of the reservoir rock,and the consistency and viscosity of the hydrocarbonsit contains.Special techniques are required to extract oil or gasenclosed in extremely impermeable reservoir rock.Alongside horizontal drilling, hydraulic fracturinghas been in use around the world for decades andis being improved all the time. The technique isused to exploit high-density reservoirs which liedeep underground.The process involves injecting water at high pressureat previously defined points into the solid rocklayers to create fine millimeter-thin cracks in therock. Sand mixed with the water (proppants) helpsto keep these cracks open longer. The cracks makeit easier for the hydrocarbons in the reservoir to flowtoward the well for production. This method hasalso been used for decades in Germany in crudeoil and gas production from conventional reservoirs,in drilling for hot water or, in recent years, in geothermaldrilling.99 % of the fluid mixture used in fracing compriseswater and sand, with around 1% being made up ofchemical additives to ensure that silica sand, forexample, blends with the water. The deliberatelycreated flow channels stay open long enough andbacteria do not enter the reservoir. Apart from thenatural seal due to the pressure from the mightyweight of the several hundred meter thick overlyingrock, usually consisting of clay or salt layers, thewell’s system of steel pipes, which are cementedinto place, form secure barriers against the waterbearingaquifer layers.For several decades now, Wintershall has used fracingto produce crude oil and gas, mostly in tight gasdeposits in Russia, Argentina, the Netherlands andGermany, with high safety and environmental standards– without any impact on the environment.HEALTH SAFETY ENVIRONMENTFracing facility drilling hole Leer Z4 in Germany

22/23Health protection.The aim of health protection at Wintershall is toprevent work-related illnesses or impairment toemployees’ health, as well as maintain a high levelof health within the workforce.Main topics are health promotion and ensuringeffective medical care in the event of emergencies.As an international company, Wintershall also endeavorsto give its employees the best possiblepreparation for journeys and assignments abroadand avoid unnecessary risks. Travel advice, vaccinationrecommendations and information on countrieswhere Wintershall operates are regularlycompiled and updated. A special HSE checklist wasdeveloped to prepare employees for trips abroad.The package is rounded off by special proceduralinstructions and emergency cards for each location.The issue of health protection in exploration andproduction in remote regions and under extremeclimatic conditions requires special attention. Thereis often a lack of medical care or the local medicalinfrastructure does not meet international standards.In such cases, special preventive measuresare taken with great care to rule out health risks toemployees and contractors as far as possible.Medical care by a company physician or a certifiedinstitution is provided at all locations. In addition,Wintershall offers its employees the chance toparticipate in regular health campaigns on topicalissues, such as cancer prevention and screening,lack of exercise or nutrition, and take the initiativethemselves.First aid courses

Insights.Health protection in production –NORM and TENORM.Residues containing naturally occurring radioactivematerials (NORM/TENORM) may arise in the productionof hydrocarbons. Oil and gas themselvesare not radioactive, unlike the enriched salty productionwater, which is charged with salts.The production residues, such as sludge or depositson riser pipes, only emit a low-intensity dose.The values are well below the level of radiation towhich aircraft passengers are exposed. Theseproduction residues are not a hazard to employees,the population or the environment.Production residues containing naturally occurringradioactive materials are disposed of in accordancewith the provisions of the German Radiation ProtectionOrdinance. This process has been officiallyapproved and examined. Storage of waste andexposure during work are monitored by radiologicalsafety representative and is documented transparentlyat all times.During cleaning work on production facilities, allnecessary measures, such as instruction, use of personalprotective equipment, control measurements,etc., are carried out to exclude risk to employees,contractors and third parties.Hazardous substance database.A hazardous substance database has been developedfor the German production operations andcan also be used internationally. It gives employeesquick access to information on the substancesused, for example in the form of safety data sheets,risks assessments and operating instructions. Becausethe database is available in Wintershall’scompany network, it can be accessed locally andso is easy to use for all employees. Its content ismaintained and updated centrally and thus is alwaysup-to-date. However, the database is not onlyused in operational business, but also for conductingemployees on the safe use of hazardous substances.HEALTH SAFETY ENVIRONMENTNORM/TENORM (technologically enhanced naturallyoccurring radioactive material), i.e. materialcontaining natural radioactivity, arises in manysegments of industry, including the production ofdrinking and mineral water, the geothermal sector,the metal-working industry and coal, ore, crude oiland gas production. The quantity of NORM/TENORMproduced in Germany from the oil and gas industry isabout 0.3 % of the total for the country as a whole.

24/25Environmentalprotection.It goes without saying that Wintershall is committed to the responsible use of natural resources inexploration, field development and production. We respond to the challenges by applying high standardsand driving technical innovation. Environmental protection is in our own financial interest. Therefore, thepreservation of natural resources, the prevention of emissions and waste are integral parts of the explorationand production process. A key factor to our success is efficient use of the resources required to findand produce reserves with new or improved methods and so minimize the impact on the environment.

Reduction of emissions.The international community has set out ambitiousgoals in order to stop climate change. As laid downin the Kyoto Protocol, global greenhouse gas emissionsare to be cut by at least five percent comparedto their 1990 levels from 2008 to 2012. The EuropeanUnion has committed itself to a reduction ofat least eight percent in the same timeframe. InDecember 2008, the EU also agreed on a packageof directives and targets for climate protection andenergy, under which primary energy consumptionand greenhouse gas emissions are to be cut by 20percent compared to 2005 by the year 2020. Thiscomprises expanding renewable energies and increasingenergy efficiency by 20 percent.Emissions are created in exploration, productionand transportation of crude oil and gas as a resultof the energy required in these tasks – energy mustbe generated or imported in the form of electricity,process heat, steam and pressure. Since the productionfacilities are often sited in poorly developedregions, energy must be generated on site, normallyusing fossil sources, such as gas, heating oil ordiesel. These emit a number of substances into theair during their thermal conversion. Other processeswhere substances are emitted into the airare the flaring of associated gas or condensateduring production and the release of unburned gas(cold flaring / venting) for safety reasons or as partof maintenance measures.As Germany’s largest producer of crude oil andnatural gas and a company that operates worldwidein selected core regions, Wintershall accepts itsresponsibility to protect the global climate. Apartfrom complying with international conventions, locallaws and our own standards, we help cut emissionsby using leading-edge technologies and new orimproved methods to increase energy efficiency,thus minimizing the impact on the environment,reducing energy consumption and also keepingcosts as low as possible.Influencing factors.Greenhouse gas emissions in production of crudeoil and natural gas fluctuate for a number of production-relatedreasons. Projects, such as developmentof new fields, testing of wells, construction ofpipeline links or scheduled plant shutdowns formaintenance or repair work, as well as safety reasonsmay influence their volume.HEALTH SAFETY ENVIRONMENT

26/27CO ²Emissions trading.Emissions trading was introduced in the EuropeanUnion as of January 1, 2005, as part of the implementationof the Kyoto Protocol. The goal of this systemis to reduce CO ²emissions where it is cheapest todo so. Market players are facilities that produceemissions and have an output of more than 20megawatts capacity, energy-intensive industriesand – as of 2012 – aviation. The second period ofemissions trading in the European Union commencedon January 1, 2008, and will last until 2012.The companies involved are currently preparing forthe 3rd trading period which will last from 2013 to2020 and involve major changes. As of 2013, theemissions trading system will be extended to othersectors and applied more stringently. In future,emissions rights will be auctioned to a greater extentand no longer distributed free of charge as iscurrently the case. The share of auctioned certificateswill increase from 20 percent per annum in2013 to 70 percent by 2020. In addition, the totalquantity of available certificates will be reducedcontinuously by 21 percent overall.Eleven plants at Wintershall/WINGAS are subjectto the statutory requirements for emissions tradingin the 2nd trading period from 2008 to 2012. Theyinclude compressor stations, the Rehden naturalgas storage facility and the steam flooding plantin Emlichheim. Greenhouse gas emissions havealready been reduced as a result of numerousprojects aimed at improving energy efficiency.Wintershall is also involved in research projectsinvestigating ways of storing and processing CO ².Compressor station Mallnow in Germany

Insights.No Flaring Policy 2012.The flaring of associated gas not only destroysvaluable energy resources worldwide, but alsoemits huge quantities of greenhouse gases into theatmosphere. To reflect our responsibility for the environment,we are committed to stopping flaringassociated gas as part of routine operations. Flaringof it will be discontinued at our existing facilities by2012, while new plants will be constructed to enableuse of the associated gas. As a result, we will playour part as a company dedicated to sustainableproduction and will also set international standards.We are regarded as a technological leader in Libyawhen it comes to environmental protection: Thegas from the production of crude oil is alreadycompletely processed. The quantities of crude oiland associated gas are processed at the centralfacilities at the Nakhla and As Sarah fields. Followingintegration of the Hamid field in December 2006,flaring was finally ceased in Libya.Steam flooding technology.The crude oil at Wintershall’s Emlichheim site inGermany is especially viscous and hence difficultto extract, which is why the company uses a specialtechnique. Water vapor at a temperature of 300degrees is forced into the reservoir at high pressureusing steam flooding. The crude oil trapped in therock heats up and becomes less viscous, enablingit to flow through the reservoir to the productionwells more easily. Associated gas and natural gasare used to produce the steam. Thanks to the useof tempered and desalinated production water asboiler feed water, fuel consumption and the specificgreenhouse gas emissions are reduced.Efficient power generation.Wintershall already supplies all its operations inGermany independently with electricity it generatesitself. The largest of the facilities which help tosupply the various sites is the combined heat andpower generation (CHP) plant in Emlichheim. Gasthat could not previously be used cost-effectivelyis now used to produce electricity and steam. Theheart of the plant is a 5.2-megawatt gas turbine thatdrives a generator which produces up to 45 millionkilowatt hours of electricity per year. Wintershallinvested 5.9 million euros in building the new CHPplant. The exhaust heat, which has a temperatureof more than 500° C and comes from the gas burnedto produce the electricity, would normally be lost inconventional plants, but is used here to producemore than 100,000 tonnes of water vapor a year.Wintershall needs that to extract oil by steamflooding. The new technology cuts CO ²emissionsby 25,000 tonnes a year.Steam turbine uses exhaust heat.The exhaust heat from the three existing gasturbines at the Mallnow natural-gas compressorstation near Frankfurt (Oder) is used to power asteam turbine. A pipe with a diameter of aroundfour meters takes the exhaust gases of the gasturbines to a process, where steam is produced todrive the fourth turbine. Afterwards, the used steamis cooled and liquefied in a closed cycle. The steamturbine generates an output of up to 20 megawatts.Expensive drive power is therefore saved and CO ²emissions are specifically reduced.HEALTH SAFETY ENVIRONMENT

28/29Waste and water management.Waste management.Waste emerges during the exploration and productionof crude oil and natural gas. We try to avoidsuch waste wherever possible. Unavoidable wasteis recycled and disposed in line with regulations.The amount of waste and its environmental impactduring recycling and disposal can be significantlyinfluenced by the source of generation. Wintershalldisposes of waste in due form and in an environmentallyfriendly way, even where there is a lack ofpublic or private means of disposal. A large part ofthe waste comes from former drilling mud pits,which Wintershall is now recultivating and rehabilitating.It is expected to complete this task by 2013.Water management.Production and waste water arise in the search forand production of crude oil and natural gas. Productionwater is removed from the oil or gas bymeans of separator systems at the surface. Afterbeing processed, the production water is reinjectedinto the original reservoir. Other waste water isproduced in construction and operation of cavernstorage facilities, during cleaning work and in treatingwater. Apart from that, there is also sanitary wastewater; however, this only accounts for a relativelysmall proportion of the total amount of waste water.Sanitary waste water is cleaned and disposed ofsensibly at locations where Wintershall is not connectedto the public sewerage system.Wietingsmoor in Germany after recultivation

Insights.Recultivation of drilling mud pits.Drilling waste such as drilling fluids and cuttingsused to be stored in pits. Today drilling fluids arepartially reused or removed in accordance withregulations; drill cuttings are cleaned and thendisposed of accordingly.Wintershall has been cleaning and renaturalizingpits in Bohlsen, Emlichheim, Eydelstedt and Wietingsmoorin an environmentally and landscape-friendlyway since 2003. The deposited drilling mud is processedaccording to its nature and composition,and secured or recycled and disposed of at therelevant plants. The entire process is accompaniedby extensive examinations. They include controllingthe material to be disposed of, as well as the groundwaterand the earth used to restore the areas.Water pollution control in storageconstruction.Wintershall’s subsidiary WINGAS ensures it meetsthe needs both of cost-effectiveness and protectionof the environment during the construction of acavern storage facility at Jemgum in Germany.Because of its massive underground salt domes,the area around Jemgum is particularly well suitedto storing natural gas. The cavern storage facilitiesthere are large cylindrical cavities in the salt layersthat have been flushed out with water. The gas isthen stored securely in the salt formation deepunderground. So that caverns can be produced ina salt dome, however, water must first be fed deepinto the site and then the brine, i.e. the water containingthe dissolved rock salt, must be pumpedback out of the cavity that has been formed.HEALTH SAFETY ENVIRONMENTIn Bohlsen new breeding and living grounds for amultitude of birds, endangered plants and insectswas created by rehabilitation of an area of approximately24,000 m². After being cleaned up, the areasat the Eydelstedt and Wietingsmoor sites were filledwith topsoil and ownership of them handed backwith a view to reusing them for agriculture.The project is conducted subject to strict environmentalprotection requirements. The fresh waterused to flush out the caverns is not extracted bysuction, but gravity-fed from the Ems so as toavoid any detrimental impact on the river’s fish. Ameans of minimizing the effects on the ecology wasfound by discharging the salt water produced informing the caverns into the North Sea at Rysumjust over 40 kilometers away. The original planningand approval envisaged discharge of brine into theEms at nearby Ditzum.In discharging the brine into the North Sea, WINGASstrictly adheres to the statutory thresholds, whichare controlled by an extensive monitoring programwith the supervision and collaboration of the publicauthorities.Mud disposal pitWietingsmoor

30/31In harmony with the environment –Construction projects.The Wintershall Group invests intensively in finding,producing and transporting crude oil and naturalgas. Europe is increasingly dependent on commodityimports for securing its energy supply. TheWintershall subsidiaries WINGAS and WINGASTRANSPORT alone are planning to expand theEuropean natural gas infrastructure significantlywith investments of around three billion euros by2015. The investments are mostly earmarked for theexpansion of the transport system as well as theconstruction of new natural gas storage facilitiesin Europe. The Nord Stream natural gas pipelinethrough the Baltic Sea and its pipeline links OPALand NEL are set to make a major contribution totransporting natural gas to Europe in future.Some of the construction projects extend acrossnational borders and also cross numerous countrysideareas. Accomplishing such large projects is amajor logistical feat and demands a high degree ofexpertise when it comes to minimizing their ecologicalimpact. The goal, as required by law, is to avoidspoiling the natural world and its proper functioning,ensure that it can still be used, and prevent anyimpairment to the flora and fauna. In addition, thegroup undertakes many more measures – someof them unusual – to protect the countryside toan extent above and beyond that required by law.Landscaping and nature conservation are importantelements at all phases of the projects.Care of the landscapeduring pipeline construction.Planning and building natural gas pipelines demanda large number of tasks and requirements. Especiallythe construction in terrain with difficult tectonics requiresexperience and know-how. The company’sexperience in constructing pipelines enables it tolive up to its responsibility for the environment andnature. The planning of a gas pipeline route takesinto account ecologically valuable areas and infrastructureelements, such as transportation routesand built-up areas, as well as the supply securityof the region concerned. This means that pipelinesdo not always take the shortest route, but the onethat makes the most sense for the requirements ofthe population and the environment.Route planning is geared to nature conservationareas and the ecological conditions of the landscape.Protective measures, such as pressingpipes below rivers and streams, are defined in closecollaboration with the landscape authorities, environmentaloffices and experts for environmental andlandscape planning. The company’s building supervisorsare supported from an ecological aspect inthe implementation of tree protection measures,limiting working strips, and regulating workinghours to protect birds’ breeding seasons. The fertiletopsoil is removed and stored on the side beforeconstruction work begins. When the natural gaspipeline has been buried in the trench and is readyfor operation, the trench is refilled with the soil thatwas previously removed. After work on the routehas been completed, the beds of waterways arerestored using formerly removed river gravel and theirbanks are renaturalized. The ground used for theconstruction site will be recultivated and loosened;trees and bushes will be planted. Meadows andarable land, as well as areas with trees and shrubs,are restored. Around a year after a gas pipeline hasbeen laid, there are virtually no signs that thereused to be a construction site. Development andcare of the replanted areas continues for at leastthree years. The company also guarantees aftercarefor all areas affected by pipeline constructionafter this period. Eventually, the fact that there isa pipeline can only be recognized by the yellowpoles protruding from the ground every 100 to500 meters.

Offshore environmental protection.The North Sea has been one of the world’s mostimportant hydrocarbon production regions fordecades. Wintershall itself has been involved inproducing natural gas there since 1965 and operates26 platforms in its southern part. It also hasoffshore activities in Argentina and Libya. The expansionof offshore expertise is generally gainingimportance in the exploration and production ofoil and gas, and the company applies this expertiseto its activities in other regions of the world.Wintershall Noordzee is based in Rijswijk nearThe Hague, and is home to the corporate-widecompetence center for offshore technology.Recycling offshore platformsThe conditions for producing oil and gas at seaare challenging. A production platform must beequipped to cope with the wind, weather, heavyseas, water quality and much, much more. Theaverage service life of a platform is approximately25 years. After this they are usually disassembledand scrapped. Wintershall has now logically andbeneficially combined ecology and economy in thisarea with the conversion and modernization of twoplatforms in the Dutch sector of the North Sea.In addition to natural gas production platformL5-C, E18-A has also been completely convertedand modernized so that it can be moved on andproduces elsewhere. The conversion of the oldplatforms saves costs, time and material comparedto a completely new construction, as a large partof the installations can be reused.The predecessor to the E18-A platform, P14-A,was built in 1993, later dismantled at its locationin the Dutch sector of the North Sea and towedto a shipyard in Rotterdam. The platform’s body,with its several decks and a helipad, were completelyreconditioned and modernized at a yardin Ridderkerk. Reuse of a large part of the P14-Aplatform meant that 500 tons of steel and a considerableamount of energy – around 2.5 millionkWh – were saved. The E18-A was equippedsolely with electric generators to minimize emissions.A supply line to the adjacent F16-A providesthe E18-A with electricity and operating resourcesand enables data to be transferred. As a result, itwas possible to reduce the number of visits to theplatform, which meant fewer helicopter flights andship transports, hence reducing emissions.MittelplateThe Mittelplate platform in the UNESCO worldcultural heritage site of the Wattenmeer inSchleswig-Holstein is the only oil producingfacility operated from German waters. New andinnovative technical solutions were necessaryto develop the crude oil reserves at Mittelplatesafely and ecologically. The 70 by 95 meter platformwas built on the tidelands of the Mittelplateand protected on the sea side by a liquid-tightconcrete-and-steel basin with sheet pile wallsof eleven meters in height, so that there can beno uncontrolled discharges or seepage from it.Drilling and production operations are protectedby sophisticated monitoring and control systemsthat provide multiple safeguards. Subsurface andsurface safety valves can be activated automatically,manually and by remote control. Finally,laying a pipeline to the Dieksand land-basedstation eliminated the need for around 2,000 shipmovements to remove the crude oil in doublehulledvessels.HEALTH SAFETY ENVIRONMENT

32/33SocialRESPONSIBILITY.Conceive cultural differences as enrichment. Discover that our shared values outweigh our differences.This is why Wintershall’s international operations not only produce crude oil and natural gas, but alsofoster contact between people. Sponsoring cultural and social projects is not a luxury for Wintershall,but an expression of its social commitment and active steps to enhance the quality of life.

Human rights.The Wintershall Group respects human rights and,as a responsible company, supports observanceand promotion of them.In its economic activity, Wintershall sees itself as anattractive employer, dependable partner and goodneighbor that nurtures the development of friendly,open and respectful relationships and mutual understandingbetween nations.Our employees’ working conditions worldwidecomply at the minimum with basic internationallabor standards and the law of the countries wherewe operate. That includes preventing child andforced labor, upholding the principle of non-discriminationat work and the right to freedom of assemblyand association.Wintershall is also committed to fundamental valuesderived from its corporate philosophy: success,innovation, increasing value added, health and environmentalprotection, safety, intercultural competence,mutual respect, open dialogue and a highlevel of integrity. These values are defined in guidelinesthat are applied in our daily activities. That isbecause every single Wintershall employee acts asa role model and contributes to the company’ssuccess with his or her actions.Wintershall engages in many cultural and socialprojects worldwide in the regions where it operates.SOCIAL RESPONSIBILITYInsights.Corporate Neighborship.As a company which has operations around theworld and employs more than 2,000 people fromover 40 nations, we experience the enriching powerof exchange across cultural borders daily andhave promoted it for years at the international level.We feel connected to the regions in which ourcompany operates. In addition to our cultural commitment,we also focus on helping people in need.Where we have activities, Wintershall sees itself asa neighbor who helps out when needed.Our employees have lent a helping hand in providingsports clothing and school uniforms for 30learners in the Cañadón-Asfalto Basin in SouthernPatagonia, organizing computers and printers for aneighboring hospital or through supporting a publickitchen run by Caritas in Tierra del Fuego togetherwith our partner Total.In North Africa, Wintershall Libya helped build aschool and renovate a nursery school in Jakhira.The company also gives support to regional festivals,public institutions and events for the workforce andthe population of the region. When the mosque onthe premises of Wintershall Libya became too smallfor the large number of local employees, the companyhad a new, bigger one built in 2004. Underthe supervision of a Libyan engineer, between 15and 20 employees of a local construction companyworked for five months on the new Omar Ben AlKhatab mosque. The mosque has been officiallyrecognized and registered by the relevant authority.An imam has been appointed, who now calls thefaithful to prayer every Friday.In Turkmenistan, Wintershall has helped equip ahospital room to Western standards.With the assistance of Wintershall’s subsidiaryWINGAS, a home for blind and visually impairedchildren in Russia was connected to the public gasnetwork, electricity lines and water pipes were renovatedand the buildings were expanded. Picturebooks and games specially designed for visuallyimpaired and blind children were also donated.We have also by now established a tradition of notgiving Christmas presents to customers and businesspartners. Instead, we support charities andhumanitarian organizations in Germany and ouroperating regions. In recent years, for example, wehave given to schools, homes for children, and anSOS Children’s Village, as well as to voluntary organizationsand facilities for promoting the young.

34/35HSE Performance2010

36/37HEALTH AND SAFETY2010

Key Performance IndicatorsOccupational Safety.2010 was a success story for Wintershall in terms of the occupational safety of its own employees. Therewere no lost time injuries (LTIs) among our own employees. However, contractors suffered three fatal injuries(FAT) and six lost time injuries. The severity of the contractor accidents led the company to critically reviewits safety regulations and derive suitable measures to avoid such incidents in future.Wintershall / WINGAS Contractors2009 2010 2009 2010Number of employees* 2,077 2,164 - -Fatal accidents (FAT) 0 0 0 3Incident with > 1 day lost time (LTI) 3 0 8 6Lost time incident frequency rateper one million man hours (LTIF) 0.65 0 1.68 1.01HEALTH SAFETY ENVIRONMENT 2010*Excluding temporary employees; part-time employees pro rata.The statistical data on its own employees’ performancedemonstrates that Wintershall was able tosurpass its achievements of the previous year. Forown employees the 2010 frequency (LTIF) was zero,the internal targets were therefore met. Despite anincrease in the overall incidents witnessed in 2010,the LTIF rate for contractors declined from 1.68 in2009 to 1.01 in 2010. This has to be attributed tothe increase in working hours performed by 42 %in comparison to the 2009 data. Following the severeaccidents in 2010, specific prevention measureswere derived during the course of the accidentinvestigation. The increase in working hours can beattributed to the construction of the OPAL pipelineand the Jemgum storage facility by WINGAS andincreased exploration activities in Norway, Qatarand Mauretania.The increase in accidents during contractor activitiescan be partly attributed to an increased demandfor experts in the past years. This has had a negativeeffect on the qualifications and especially onexperience of personnel, which directly influencessafety performance. Wintershall is working with itspartners to reestablish the high level of training inthe oil and gas industry. We will systematicallyapply the contractor management methods wehave developed so that external companies meetthe requirements we have set out.The WINGAS Group has derived specific measuresfrom the investigations into the severe incidentswhich occurred in 2010. They include an externalreview of the safety concept, the obligation to submitapplications for all activities at construction sitesoutside the agreed working time, monitoring ofcompliance by means of helicopter flights over sites,random checks, including at weekends, and trainingand specially tailored courses for different trades.The goal in 2011 is to avoid any type of accident.With enhanced standards and even more commitment,we are working to continuously improve thehigh level of safety and our performance.We are constantly striving to improve the companywidehealth, safety and environment managementsystem (WINS). This is supported by intensive experienceexchange and dialogue between expertsfrom the Operating Companies (OPCOs) and BusinessUnits (BUs) at Wintershall’s global locationsand our involvement in committees of the InternationalAssociation of Oil and Gas Producers (OGP)and the industry association Erdöl- und Erdgasgewinnunge. V. (WEG).

38/39Safety 2010at a glance.Worldwide: Review of safety standardsin offshore production.The Deepwater Horizon disaster in the Gulf of Mexicohad serious consequences for the environment.The impact of the blowout, which was caused bythe failure of various safety systems, was also exacerbatedby the fact that the platform was locatedin waters that are 1,500 meters in depth, leadingto the blowout being considerably more difficult tocontrol. The E&P industry has responded to theevent by conducting extensive reviews of the existingsafety systems applied in offshore production. Anindustry-wide working group set up by the InternationalAssociation of Oil & Gas Producers (OGP)reviewed the course of the incident and the underlyingcauses. The objective of the review was toreassess the systems currently applied and adaptprocedures where required.Even though Wintershall itself does not operate anydeep-sea drilling activities, the findings from investigationreport were closely monitored. In order toimprove safety in drilling operations further, thepotential relevance of the courses of events andfailed barriers were assessed. In drilling wells andproducing hydrocarbons, Wintershall adheres tothe very highest standards of environmental protectionand safety. At the same time Wintershall isconstantly seeking opportunities to improve thesafety of existing technologies. A task force wasestablished in 2010 to implement learning pointsand optimize existing processes further.Germany: Fire drill at the Rehdennatural gas storage facility.In the fall of 2010, Wintershall invited safety expertsto attend a drill for a major incident at the naturalgas storage facility in Rehden. During the annualfire drill, around 60 field personnel from Wintershalland BASF plant fire services, as well as local volunteerfire fighters, trained for various scenarios in Rehden.Additionally safety experts from the Gazprom subsidiaryGazobezopasnost, from Gazprom export,Achimgaz and Severneftegazprom observed thedrill for the first time.During the exercise, a task was to bring an ignitedgas outlet under control at a wellhead. Togetherwith the volunteer fire fighters, the Wintershall plantfire service demonstrated various extinguishingtechniques and a personnel rescue maneuver infront of almost a hundred guests. The LudwigshafenBASF plant fire service’s most modern service vehicle,the turbo extinguisher, played a central rolein the fire drill. The turbo extinguisher is equippedwith two aircraft turbines, and water or foam is fedinto their jet wash. Through this, the special vehiclegenerates a fine mist which prevents flames andescaping gas from spreading. Thus, one hundredpercent of water-soluble gases can be washed outof the atmosphere. Up to 8,000 liters of water perminute can be reduced to a fine spray and sprinkledover an area of up to 3,500 square meters from adistance of 150 meters.Fire drill in Rehden (Germany)

Germany: Microtunnel – working in compressedair conditions.The Baltic Sea Pipeline Link (OPAL) will pass belowthe River Peene via a microtunnel that was drilledin a depth of up to 25 meters. This method waschosen to protect the sensitive countryside andsurrounding nature reserve. A tunneling machinewith a diameter of three meters was used to drill atunnel from the entry pit to the exit pit 1,000 metersaway. As the machine advanced, 4-meter concretesegments were inserted in the tunnel. At the completionof the tunnel, the pipes for OPAL, which had beenwelded together beforehand, were drawn in.HEALTH SAFETY ENVIRONMENT 2010The discovery of a granite erratic boulder of aroundthree meters in diameter after 650 meters of drillingresulted in the cutting tools having to be replacedon the drill head at a depth of around 22 meters.The position below groundwater level was achallenge. Due to the prevailing conditions in thesubsoil, the tool had to be replaced with the frontsection of the tunnel pressurized using compressedair. This ensured stability, enabled access and preventedan excessive influx of groundwater. Extensivesealing work for the tunnel and surface werenecessary to make the working area air-tight. Thepressure at the drill head was 2.3 bars, equivalentto that when diving at a depth of 20 meters. Consequently,special compressed air equipment wasneeded to ensure safe working conditions andminimize the physical strain and stress. The techniciansworked in three shifts, each lasting 2.5hours; it also took around 3 hours to prepare theworkers for the face and another 3 hours to returnthem to the surface in a compression chamber.The entire work program was supervised by anoccupational physician and coordinated by a teamof professional divers.

40/41Russia: STC –working hand-in-hand for safety.Over the past few years, the successful collaborationbetween Wintershall and Gazprom along the entirevalue creation chain – from the wellhead in Siberiato the customer in Europe – has been expandedsystematically to other important areas for bothcompanies. Wintershall and the Gazprom safetyexperts have been working together regularly since2008. The goal is to develop the skills and safetyknow-how of their field personnel when it comes torectifying damage, improve coordinated interactionbetween them and test new protective equipmentand devices. Following joint safety drills in Astrakhan,Russia, and in Rehden, Germany, further projectsare planned for 2011.Libya: Vehicle tracking system forthe desert.Under challenging climatic conditions Wintershallproduces oil in Libya. In 2010, Wintershall Libyaequipped its vehicle fleet and an aircraft with asatellite-based positioning system to enable rapidlocalization of vehicles in the desert, where fullcoverage by mobile communications and VHF radiois not possible. The vehicle tracking system enablesvehicles to be tracked down quickly and easily, evenin remote areas, and can navigate teams to theirlocation if need be. It can be operated from anywherein the world.Norway: Adapting to growth.Wintershall is one of the biggest licensees in Norway,holding more than 40 licenses and over 20 operatorships.The company plans to invest more than onebillion euros in this region by 2015 and has discoveredhighly promising reserves off the Norwegian coast.In 2010, Wintershall Norge and its consortium partnersconducted numerous audits of their contractorsand drilling rig operators to ensure compliance withthe HSE standards. Areas such as health and safetymanagement, environmental protection, maintenanceand repair and emergency managementwere audited.Due to the continuous expansion of its activities inNorway, Wintershall Norge also pressed aheadwith adapting the existing management system tochanging conditions. One project team is developinga business management system integrating theHSE quality management system. Both employeesand contractors are to be given access to the webbasedsystem.Exploration in Norway

Key performance indicatorshealth protection.As in 2009, no employee of Wintershall suffered from an occupational disease in 2010. Together with HSEexperts, company physicians at the individual locations and Business Units analyze working areas in orderto minimize the risks to employees’ health in their activities. The working conditions in exploration, productionand administration are of a very high standard. A total of 53 plant inspections to check standards wereconducted. Beside this, numerous workplace inspections were performed by the management accordingto the requirements of the HSE Management System.In order to ensure that emergency first aid can be administered, there are 557 first aiders who hold a nationallyrecognized certificate in first aid at the Wintershall Group’s locations.HEALTH SAFETY ENVIRONMENT 2010501 medical examinations relating to prevention or early screening for work-related diseases and to preparestaff for travels abroad were conducted worldwide in 2010.Health protection 2010 at a glance.Keeping healthy is not only a question of ensuringthat operating facilities are technically safe.Health consciousness, and the will of each andevery one of us to promote health and safety andto communicate this issue, is of crucial importance.Wintershall therefore believes it is vital to give itsemployees up-to-date information on importanthealth concerns. Wintershall staged a campaignunder the slogan “avoid bowel cancer” in 2010. Itwas specifically aimed at providing information onthis form of cancer and measures to prevent it.Specialist doctors and nutritionists explained theillness and ways it might be prevented. Around twohundred employees took part in free early screeningat the headquarters in Kassel.Wintershall offers its employees regular vaccinationagainst influenza – a service that was also taken upby many in 2010. In addition, company physiciansprovide employees assigned abroad with intensivehealth advice and services before they travel. Thatincludes health information on the country they aretraveling to, as well as administering the vaccinationsrequired there.An emergency can strike anybody. The personsaffected often only have a chance of survival ifimmediate measures are put into effect. Above all,it is vital to know what to do in emergencies. Thatis why Wintershall gives its employees the opportunityto take part in first-aid courses. Wintershalland WINGAS also encourage staff to take part incourses for company first aiders held by the GermanRed Cross. The company registers the employeesfor courses and also assumes the costs.Donating blood can also save life. In 2010, twoblood donation drives were organized at the headquartersin Kassel and almost 100 employees tookpart in them.

42/43ENVIRONMENTAL PROTECTION2010

Key performance indicatorsenvironmental protection.HEALTH SAFETY ENVIRONMENT 2010As a wholly-owned subsidiary of BASF SE, Wintershall is committed to the Responsible Care Initiative. Inaccordance with BASF’s Responsible Care Reporting Guidelines, environmental emissions relating tothe production of crude oil and natural gas are reported as a ratio of Wintershall’s participating interest inthe consortium in question. As a member of the International Association of Oil & Gas Producers (OGP),Wintershall has reported its environmental emissions in exploration and production as part of the OGP’s“Environmental Performance in the E&P Industry” report since 2006.Energy.We use electrical energy to produce, process and transport crude oil and natural gas, for example to drivepumps and compressors, as well as thermal energy in the form of steam to produce oil. Depending on thelocation of our production sites relative to the supply networks, we obtain electricity from the public grid orproduce it ourselves at remote locations.In 2010 we used a total of 977,742 MWh in electrical energy, an additional 4,260 Mio. MWh energy forproduction processes and 511,514 tonnes of steam for our processes.The use and generation of energy are subject to continuous improvement regarding efficient energy use.Examples are the commissioning of a highly efficient combined heat and power generation (CHP) plant atour Emlichheim location in Germany and installation of a system to enable use of exhaust heat at a gasturbine generator plant in Nakhla in Libya. In addition, Wintershall is testing generation of wind and solarpower in a pilot project in the Libyan Desert with the aim of obtaining an energy-efficient electricity supplyfor remote facilities.

44/45Greenhouse gas emissions.Emissions released into the air are regularly controlled and recorded in accordance with statutory stipulationsand our own standards. Apart from greenhouse gas emissions, we also ascertain emissions of air pollutants.They include inorganic gases such as carbon monoxide (CO), nitrogen dioxide (as NO ²) and sulfur dioxide(as SO ²). Apart from carbon dioxide (CO ²), nitrous oxide (NOx) and methane (CH 4 ), no other greenhousegases are emitted by Wintershall.Wintershall was able to cut greenhouse gas emissions last year by 11 percent compared with 2009.Production operations at Wintershall and WINGAS accounted for total emissions of 1.37 million tonnes ofCO ²(2009: 1.67 million) and 3,318 tonnes of CH 4 (2009: 5,940) in 2010. Relative to Wintershall’s productionof crude oil, natural gas and condensate, the specific emission is 0.08 tonnes of CO ²/toe (2009: 0.08).Methane losses in gas production in 2010 were around 0.024 percent of the total quantity of natural gasproduced.Source of CO ²emissions co ²emissions 2009 (t) CO ²emissions 2010 (t)Production processes 1,507,838 828,579Indirect (import/export of electricity/steam) 46,814 79,715Direct (electricity and steam production) 123,079 465,135Source of CH 4 emissions ch 4 Emissions in (t) 2009 CH 4 emissions in (t) 2010Production, undifferentiated 5,940 3,318The reduction in greenhouse gas emissions is mainly attributable to rigorous measures to improve energyefficiency, such as commissioning of a CHP plant to produce electricity at Emlichheim, lower emissions inthe Netherlands and further implementation of the No Flaring Policy. Of the produced associated gas 95 %is used to the date.For an environmentally friendly future: natural gas.Natural gas stands out among fossil fuels on account of its high energy efficiency and favorable environmentalproperties. When natural gas is burned, it gives off mainly CO ²and water vapor. Sulfur and nitrogenare found only in low concentrations. Far fewer greenhouse gases and dust particles are emitted comparedto other fossil fuels.During transportation process from the production field to the customer, natural gas sometimes travelsseveral thousand kilometers through pipelines. The gas has to be compressed at regular intervals in compressorstations in order to compensate for the pressure loss caused by friction at the interior pipe wall.Electric, gas and steam turbines are used to drive the compressors. Virtually sulfur-free natural gas is usedas fuel for the gas turbines.

CO ²-emissions trading in Germany.In 2010, WINGAS TRANSPORT’s natural gas compressor stations in Mallnow, Olbernhau, Rückersdorf,Eischleben, Reckrod, Lippe and Haiming, WINGAS’ natural gas storage facility in Rehden and Wintershall’sCHP and steam flooding plants in Emlichheim as well as two Wintershall platforms in the Netherlands wererequired to participate in the emissions trading scheme. In 2010, the German Emissions Trading Agency(DEHSt) allotted our plants 744,624 EU allowances (EUA/a). Our German plants that are required to tradeemissions emitted a total of 447,628 tonnes of CO ²in 2010.Wintershall is currently preparing for the 3rd emissions trading period from 2013 to 2020. It is necessary toreapply for the EU allowances for this period. In addition, allowances for the OPAL natural gas transferstation, which is currently under construction in Lubmin, and the new OPAL gas compressor station atRadeland must be applied for from the Emissions Trading Agency.HEALTH SAFETY ENVIRONMENT 2010Emissions of other substances.Fossil sources of energy, such as natural gas, heating oil or diesel, which emit various substances into the airduring their thermal conversion, are used in some cases for power generation and production at our locations.Emissions of inorganic substances fell by 1,621 tonnes in 2010. Measures to increase energy efficiency,improved utilization of associated gas and lower energy requirements are among the reasons for this.Inorganic substances emissions 2009 (t) Emissions 2010 (t)Total inorganic substances 4,586 2,965Carbon monoxide (CO) 2,005 1,033Nitrogen oxides (NO X) as NO ²2,276 1,678Sulfur oxides (SO ²+SO ³) as SO ²305 254Organic substancesNon-methane volatile organic compounds (NMVOC) 2,375 2,015Other substancesParticulate matter 20 30

46/47Waste management.Waste is classified, stored, handled, transportedand disposed of in accordance with the applicablelegislation of the country in question. In this respectWintershall follows international and own standards.Waste is classified into the categories “hazardouswaste” and “non-hazardous waste” according toEU regulations.In 2010 Wintershall incurred 61,268 tonnes of waste(2009: 185,095). 29,505 tonnes were hazardouswaste (2009: 150,122) and 31,763 tonnes nonhazardouswaste (2009: 34,973).83 % of the waste was disposed of at approveddumps. Around 8 % was recycled or subjected tothermal recovery, approximately 4 % was disposedof in waste incinerators and 5 % was disposed ofproperly in other ways. The volume of waste declinedin comparison to the previous year due tocompletion of the recultivation at the used drillingmud pit at Wietingsmoor.Water management.A total of 9.5 million cubic meters of water wereused in 2010 (2009: 9.8 million), most of which –8.5 million m³ (2009: 9.6 million) – was accounted forby production water. Some 6.55 million cubic metersof production waster were reinjected into the reservoirsafter being separated from the crude oil andnatural gas at the surface. Production water fromour offshore platforms totaled 1.97 million m³ and,after being cleaned, was discharged into the sea incompliance with the statutory threshold limits.There were also 152,210 cubic meters of sanitarywaste water and 758,322 cubic meters of otherwaste water. A total of 501,332 m³ was fed to wastewater treatment facilities.old oak saved

Environmental protection2010 at a glance.HEALTH SAFETY ENVIRONMENT 2010WINGAS: Compensation for OPAL.As compensation for land-use through construction of the Baltic Sea Pipeline Link (OPAL), a multi millioneuro sum is being invested to expand, maintain and care for areas of ecological value. In Brandenburgalone, some 280 hectares have been converted into semi-natural biotopes, including reforestation of anarea of just under 90 hectares. The diversity of heathlands is to be fostered over around 40 hectares,while a further 40 hectares will be turned into forest monocultures. In addition, hedges and tree rowswill be planted, wetland biotopes created and the renaturation of watercourses supported.WINGAS sometimes takes a detour in constructing pipelines.In order to protect an oak at least 200 years old and with a diameter of 1.6 meters that was in theplanned path of OPAL, the gas pipeline was diverted around the tree and the adjacent small pond.WINGAS: Eco gas with a positive CO ²balance.Since October 2010, Wintershall’s subsidiary WINGAS has been offering eco gas, i.e. CO ²-neutralnatural gas. As a result, customers can completely offset the greenhouse gases emitted during theburning process. The emissions are compensated by CO ²reductions in climate protection projects.The projects are chosen in accordance with strict international quality criteria, such as those of theGold Standard. These are accepted by environmental organizations like the WWF. The certificates,which are acknowledged and inspected by independent bodies such as the UN Climate Secretariat inBonn, are purchased by WINGAS and then taken off the market and deleted. The emission-reducingprocesses are regularly monitored by recognized organizations such as Germany’s technical inspectionassociation TÜV.WINGAS: Biogas in the portfolio.WINGAS’ eco gas portfolio is also complemented by biogas. WINGAS cooperates with farmers whosupply the company with biogas under long-term contracts. Mixing in biogas can further improve naturalgas’ excellent CO ²values. In accordance with the Federal German Government’s targets, by 2020, sixbillion cubic meters of biogas are to be fed into the German natural gas pipeline network each year.

48/49Netherlands: Wintershall Noordzeecertified to ISO 14001.In June 2010, Wintershall Noordzee’s HSE managementsystem was recertified in accordance with theinternational environmental standard ISO 14001 forthe third time after 2005 and 2007. This requiresthe company to have a defined environmental policy,environmental objectives and a managementsystem that helps achieve the objectives. Thesecriteria are met by Wintershall Noordzee with itssystem. This is geared toward constant controland improvement of the company’s environmentalbalance.Libya: Absorbent to help save water.The company has planted over a hundred palmsand mango, orange and other citrus trees for testpurposes in the Nakhla treatment facility in themiddle of the Sahara as part of testing the absorbentLuquasorb from BASF. If the test goeswell, the absorbent will be passed on to the localsettlements in the area, so that they can use it toreduce their agricultural water consumption. Fourkilograms of absorbent are mixed with sand per palmand incorporated in the root area. The absorbentsucks up the water into a gel to prevent it fromseeping away or evaporating quickly. A new watertreatment plant is also being built. This cleaned waterwill then be used to water the plants and trees.Libya: Power from sun and wind energywith crude oil production.A further model project in Libya, which has beenrunning since early 2010, will examine whether installationsoutside the central production facilities,such as camps, measuring points and pumps,can be independently supplied with power fromsun and wind energy. Under desert conditionsthe power generated from wind in the project iscompared to the output of a photovoltaic system.The effects are not limited to savings in fossil fuelconsumption – greenhouse gas emissions are alsoreduced.Libya

Qatar: Safety drill and informationevent held.In 2010, an initial exploration well was drilled in theKhuff formation in the western part of explorationblock 4N in Qatar. Extensive safety measures weretaken in advance to avoid oil spills. As protection,Wintershall has concluded service agreements inQatar with a specialist emergency organization thatkeeps safety equipment available on an escort shipstationed alongside the well. The drillship’s crewpracticed using the equipment in an emergencyexercise. Wintershall is also involved in block 3 inQatar. Following the first 3D seismic investigationsin 2010, exploration wells are planned in the comingyears. Before the seismic campaign, Wintershall’scontractor Western Geco held an information eventfor local fishers in order to avoid disruptions for allparties involved.HEALTH SAFETY ENVIRONMENT 2010Russia: Green Office Campaign.It is only now that Russians are slowly becomingaware about environmental protection and resourceconservation. Wintershall Russia therefore initiatedan environmental protection campaign for employeesat its office in Moscow. In addition to an evaluationof the office building’s environmental compatibility,the Green Office Campaign also focused on showingemployees small but effective ways with whichthey can make a personal contribution to environmentalprotection and resource conservation. Manyemployees also took part in a campaign to clean thebanks of the Moskva River in their spare time.

OUTLOOK.

52/53News.Schizophyllan –A small fungus with a big impact.The production of crude oil and natural gas is nolonger conceivable without modern and highlyspecializedtechnology. And yet the best methodsoften come from nature itself, as is the case withthe largest research project that the German crudeoil and natural gas producer Wintershall is currentlyconducting together with BASF. A fungus is in itsfocus – for one simple reason: When it consumesoxygen and starch, Schizophyllum commune – asthe fungus is called – generates a biopolymer, a100 % biological thickening agent.This polymer can be used for oil production: Thegelatin-like substance thickens the water which isinjected into the reservoir to enhance production.The water can force more oil out of the reservoirbecause it increases viscosity. This technique canraise the recovery rate from a reservoir significantly.Even more, it does so in an environmentally friendlyway because the biopolymer is fully biodegradable.Start of construction of NEL.Work on building NEL, the North European NaturalGas Pipeline, got up and running in 2011. 440 kmin length, it is one of Germany’s largest pipelineprojects and demands extreme precision on thepart of the engineers planning it: Its route takesinto account the factors natural conservation, geography,safety and cost-effectiveness. All this isunderpinned by sophisticated technology and aplanning process that includes all agencies andorganizations representing public interests. Thepipeline is scheduled for completion by fall 2012.Exploration of shale gas deposits.Germany has valuable undeveloped gas deposits,for example in the form of shale gas. Work to quantifynatural gas resources in such unconventionalreservoirs is still in its early stages. The GermanFederal Institute for Geosciences and Raw Materials(BGR) is currently investigating the overall potentialfor domestic shale gas production on behalf of theGerman Federal Ministry of Economics.Wintershall is also involved in the scientific evaluationsand in August 2011 was granted permissionby the mining authorities to carry out geologicaltests in two fields. Wintershall’s “Rheinland” and“Ruhr” concessions cover an area of 3,900 km²and stretch from the German/Dutch border in thewest as far as the Sauerland region in the east.Wintershall’s activities in the next three years will beconfined solely to preliminary geological surveys toassess the resource potential of possible unconventionalreservoirs in these areas. Deep drillingand fracing operations are not planned. The scientificwork program in North-Rhine Westphalia includesspecial rock investigations aimed at providinginformation about the gas content of the rock atgreater depths.We will be focusing on shale horizons which, inselected locations, are already close to the surface,thus making it easy to carry out geological tests.Shallow core holes of up to 200 meters under thesurface which provide rock samples for closer geologicalexamination may also be drilled and mustbe applied for individually.Wintershall does not currently produce shale gaseither at its international sites or in Germany. Theresults of the preliminary investigations must becarefully evaluated before any shale gas depositsin Germany can be exploited – needless to sayunder the precondition that shale gas productionwould make economic sense and would not causeundue damage to the environment. That is becausethere is no hard and fast answer to this question atpresent.

Action days.OUTLOOKEnvironmental day 2011.To mark the United Nations World EnvironmentalDay, Wintershall is also launching a company-widecampaign to promote environmental protectionand increase ecological awareness. The companywill provide information on its environmental protectionactivities at the Wintershall EnvironmentalDay 2011. It will also show how every single one ofus can help protect the ecology by small measuresat work and in everyday life. Outstanding projectsfrom Wintershall’s global locations will be showcasedin an exhibition. International experts will presentenvironmental protection measures in the oil andgas industry in a program of talks. Focal issues willbe production of shale gas and construction of theNord Stream Baltic Sea Pipeline.Health Campaign 2011.Skin protection is the theme of Wintershall’s HealthCampaign 2011. Since skin diseases are one ofthe most widely spread occupational illnesses, thecampaign will provide information on related riskfactors and valuable tips on preventing such diseases.The emphasis is on work-related skin diseases,skin and sun protection and early detection of skincancer. Within the campaign Wintershall offers freeskin cancer screening for employees.STC – HSE experts meet on Sakhalin.In 2011, HSE experts from Wintershall will meet withGazprom’s safety and rescue service on Sakhalinin Eastern Siberia to share their experiences anddiscuss the latest technologies and methods forrectifying damage. Gazprom has built Russia’s firstliquefied natural gas plant on the island in order tosupply countries in the Far East. The challengingclimatic conditions and sensitive ecosystem demandspecial protective measures in the area of health,safety and environment.Outlook Libya.Wintershall is monitoring the developments in Libyawith great concern. The company closed down productionin the desert and shut in the wells securelyat the end of February 2011 for safety reasons. Nomore oil has been produced there since then. All internationalemployees were flown out at the same time.368 local employees remained in the country, someof whom are also supervising and monitoring theoperating facilities. Before that, Wintershall had producedaround 100,000 barrels of oil a day in Libya.It is currently difficult to assess how the situation inLibya will develop. Wintershall is taking care of itsLibyan employees on site as best it can. At presentit is not possible to foresee whether, when and howoil production in Libya can be recommenced.Wintershall’s commitment in Libya is long-term andsustainable – and one to which the company isfirmly dedicated.Wintershall is supporting the International Red Cross(IRC) and Red Crescent in their work in Libya with100,000 euros of immediate aid. The donations willbe used specifically to help people in Libya andTunisia. In addition, a fundraising campaign for employeeswas initiated and Wintershall doubles everyeuro donated.Wintershall has been active in exploration and productionin Libya, one of Africa’s biggest oil producers,since 1958. More than 2 billion US dollars have beeninvested in the country since then, and more than150 wells have been drilled. Wintershall currentlyoperates eight onshore oil fields in concessions96 and 97 in the Libyan Desert. The facilities areapproximately 1,000 km southeast of Tripoli.

54/55HSE in figures.Wintershall Performance unit 2010 2009Sales to third parties mil. € 10,791 11,356• Exploration & Production mil. € 3,819 3,846• Natural Gas Trading mil. € 6,972 7,509Profit from operating companies (EBIT) mil. € 2,334 2,289• Exploration & Production mil. € 1,918 1,781• Natural Gas Trading mil. € 416 508Occupational Safety unit 2010 2009Number of employees* 2,164 2,077Own employees• Fatalities (FAT) 0 0• Incident with > 1 day lost time (LTI) 0 3• Lost time incident frequency rateper one million man hours (LTIF) 0 0.65Contractors• Fatalities (FAT) 3 0• Incident with > 1 day lost time (LTI) 6 8• Lost time incident frequency rateper one million man hours (LTIF) 1.01 1.68LTIF total (own employees and contractors) 0.67 1.17Occupational Health unit 2010 2009Occupational disease own employees 0 0First aiders Wintershall/WINGAS 557 -Occupational medical check ups 501 -Environment unit 2010 2009Energy consumption (total)(general and production process) mil. MWh 5,238 5,933• General MWh 977,742 140,929• Production process mil. MWh 4,260 5,792Greenhouse gas emissions• CO ²mil. t 1.37 1.67• CH 4 t 3,318 5,940Emissions of inorganic substances t 2,965 4,586Emissions trading• Received emission allowances EUA/a 744,624 730,385• Emissions from facilities regulatedunder emissions trading scheme t 447,628 493,546Waste disposal t 61,268 185,095Water turnover (incl. production water) mil. m 3 9.5 9.8*Excluding temporary employees; part-time employees pro rata.

Contact persons.CONTACT PERSONSKassel Head OfficeContact: +49 561 301-1757hse@wintershall.comGermany (WIDE)Dr. Michael BätcherHSE ManagerNetherlands (WINZ)Onno SpinderHSE & Permitting ManagerArgentina (WIAR)Andres WertheimerHuman Resources & Administration ManagerGuido SchniedersCorporate HSE ManagerGeorgina WienHSE Manager WINGASRussia (WIRF)Nikolay PopovHSE ManagerNorway (WINO)Janne LeaHSEQ ManagerQatar (WIQA)Axel BarenscheeHSE ManagerJörn KahleHSE ExpertMalalay OsmaniHSE ExpertResponsible for the contentWintershall Holding GmbHFriedrich-Ebert-Straße 16034119 Kassel, GermanyTel.: +49 561 301-0Fax: +49 561 301-1702Klaus JantosEnvironmental ExpertLars WinkelsHSE ManagerConcept, Designand TypesettingDamm & Bierbaum GmbH, Frankfurt am MainLithographyORT, Frankfurt am Main