FY 2012 - Investor Relations - NIS

Traffic SafetyThe introduction of Global Positioning Systems (GPS)resulted in the improved control of vehicle speed and reducednumber of offenders and thus, reduced risks associatedwith speeding.Plans for 2013 are:1. Organization of training for safe driving in NAVAK,in order to identify categories of drivers and thelevel of risk, and to choose driver training basedon this;2. Procurement of equipment for testing the mentaland physical abilities driver, which establishesa preference of drivers to enter the risky trafficsituations;3. Changing of Company’s Standard: Safe drivingmeans of transport by road in the NIS, in terms ofimproving the planning and risk assessment of theroad (prior to departure).Contractor and Third Party ManagementIn 2012, the Company Standard: “The Method ofManaging Contractors and Third Parties in Terms of HSEwas enforced. This Standard defines:• pre-qualification of potential Contractors (theprocess is repeated every two years)• selection of pre-qualified Contractors and signingof the main HSE Annex to the Contract• Contractor management during the activities• performance efficiency analysis and assessmentof Contractors in terms of HSEThe Contractor and Third Party Management areperformed by an employee in charge of contractor supervisionsas a person responsible for the direct implementationof the specific activity and Contractor’s HSEperson.The training was attended by 492 employees whohave been identified as the persons responsible for theimplementation of this standard.In 2012 the number of qualified contractors, in termsof HSE, is 276 potential suppliers of services.Personal Protective Equipment (PPE)Personal Protective Equipment means equipmentwhich aims at protecting employees against injuries andoccupational diseases and/or hazards which cannot beeliminated from the working environment. The properuse of PPE during work, the risk of employee injuries issignificantly lower.In view of ensuring adequate protection, employeesin the Company are provided with contemporary andhigh-quality personal protective equipment which complieswith the standards of the Republic of Serbia andinternational standards. For this purpose, the PPE catalogueswhich comprise all technical Company requirementsin terms of quality, appearance and functionalityhave been drafted.in 2013 The planned centralization of storage of personalprotective equipment, in the so-called consignmentstock is planned in the NIS. This will allow that atall times employees will be provided with appropriatepersonal protective equipment in sufficient quantities.Use of HSE Notice Boards and SignsIn 2012, the Company Standard: “Use of HSE NoticeBoards and Signs in NIS j.s.c. Novi Sad Facilities” wasenforced. The Standard defines the type, size, number,place and setup level and zone of notice boards andsigns as well as the HSE-related rights and duties regardingthe placement of notice boards and signs arisingfrom the Company Policy, laws of the Republic of Serbiain the area of HSE as well as requirements of internationalstandards.In 2013 according to plans every branch will completethe set of HSE designation in accordance with therequirements of the above mentioned Company’s standards,and the practice of leaflet distribution on entry tothe facilities and the location of the Company to thirdparties will be established.Environmental ProtectionThe strategic concept of NIS j.s.c. Novi Sad as a sociallyresponsible company is running business in linewith the adopted NIS j.s.c. Novi Sad HSE Policy as well assustainable development principles by minimizing negativeimpacts on the environment and human health aswell as continuous improvement and efficient environmentalprotection system management.NIS allocated and expended substantial funds forthe implementation of environmental projects aimed atequipment modernization and reduction of emission ofpollutants into environment, remediation and rehabilitationof contaminated locations (historical contamination),environmental monitoring etc.By the completion and start-up of the MHC/DHTunits, NIS completely switched to the production of motorfuels (gasoline and diesel) which meet the requirementsof Euro 5 quality standard.In addition to projects with a direct environmental effect,2010 – 2015 investment programmes has been defined.The investment program also covers infrastructureprojects with significant environmental effect (pipeline andsewage system replacement projects, modernization ofBlockunits, flare etc.), reconstruction and modernization of petrolstations, energy efficiency and risk reduction projects.In 2012, the following sums as at December 31st, 2012were invested for projects directly targeted at environmentalprotection:Exploration and Production 50,975,471 424,796Refining 3,180,409,322 26,503,411Sales and Distribution 9,630,273 80,252Oilfield Services 9,308,312 77,569Total: 3,250,323,378 27,086,028Projects ended in 2012Block Project Total investment until 31/12/2012Exploration andProductionRefiningSales and DistributionOilfield ServicesProcurement of Geoelectric SurveyingEquipment for the Purposes of EnvironmentalResearchesRSD2012ЕUR(RSD)Regeneration of Spent Sulphuric Acid 1,454,718,056Revitalization of S-1000 Gas Flare RecoveryUnit85,872,299Replacement of Safety Valves in Block 5 26,368,792Reconstruction and Modernization of LPGLoading/Unloading Installations342,752,984Reconstruction of HPV facility 224,299,412Installation of Separators at 9 PSs 9,630,273Reconstruction of the Waste Water TreatmentSystem of the Biodisk at location Šangaj9,308,312TOTAL: 2,160,719,160134 • Environmental Protection, Industrial and Occupational Safety Annual report 2012Annual report 2012Environmental Protection, Industrial and Occupational Safety • 135