SOCIAL IMPACT

Business principle: health, safety and the environment

Business principle: people

Business principle: communities

Note: details of the principles are described in the relevant chapters.

SAFETY PRACTICES

Business principle: Health, safety

We have a systematic approach to health, safety, security management in order to achieve continuous performance improvement. To this end, we manage these matters as critical business activities, set standards and targets for improvement, and measure, appraise and report performance externally.

In order to minimize safety risks and impact of the Company, we have set a number of targets. The results of their implementation are presented further in the table.

Tab. 6.Our targets in safety

Health and safety performance

Table 7 represents KPO LTIF versus contractors LTIF for the past four years. KPO and contractors’ data are presented separately. To obtain a consolidated indicator, a calculation formula should be applied, and not just a summarized data used.

Tab. 7.Lost Time Injuries frequency: KPO vs contractors, 2020–2023

Table 8 represents KPO TRIF versus contractors’ TRIF.

Tab. 8.Total Recordable Injury Frequency: KPO vs contractors, 2020–2023

KPO strives to make work places safe. Despite this, during 2023 there were 14 incidents, resulting in various injuries of KPO and contractors’ employees.

Tab. 9.Incidents (total recordable injuries) in 2023

One severe (major) Road Traffic Incident (RTI) was registered in 2023 – a сontractor’s Gazelle truck collided with another contractor’s KAMAZ mixer truck resulting a serious injury to Gazalle truck driver.

The RTI frequency⁴ per 1 million km driven in KPO and contractors increased from zero in 2022 to 0.02 in 2023. In 2023, the kilometers driven by KPO vehicles amounted to 41.8 million km, compared to 39.3 million km in 2022.

Fatality Frequency in KPO and our contractors in 2019 – 2023 remains zero.

In 2023, KPO and сontractors’ employees worked 37,823,703 man-hours: 18 % of them (6,652,986 man-hours) worked by KPO employees and 82 % (31,170,717 man-hours) by сontractors’ employees.

Tab. 10.Manhours worked: KPO vs contractors, 2020–2023

In 2023, no high potential incidents (HPI)⁵ were recorded in KPO.

Tab. 11.High Potential Incidents: KPO vs contractors, 2020–2023

In 2023, 125 near misses (NM)⁶were registered in the Company: of which 74 (59 %) were reported through the Incident Notification Procedure, and 51 (41 %) – through HSE cards. For each near miss same as for each incident, KPO performs a thorough investigation, identifies the causes and develops recommendations to correct the shortcomings and prevent their recurrence.
 

Tab. 12.Near misses: KPO vs contractors, 2020–2023

FATALITY FREQUENCY⁷ IN KPO AND OUR CONTRACTORS IN 2019–2023 REMAINS ZERO.

Peer comparison

Every year we review our key safety performance indicators against the other O&G producers’ indicators reported by International Organisation of Oil and Gas Producers (IOGP). IOGP annually publishes HSE performance indicators on the website www.iogp.org.

In 2023, the number of Lost Time Injuries in KPO decreased –2 LTIs in 2023 versus 7 LTIs in 2022. If compared with other peer companies in 2023, KPO LTIF is ahead of IOGP average, but behind the performance of IOGP Top 10 (see graph 4).

Graph 4.KPO Performance versus IOGP, 2010–2023

HSE improvement plan for 2023

The overall objective of KPO HSE Improvement Plan is to improve Health, Safety and Environment management, to further control risks and to prevent harm to people and the environment. This is done by implementing Key Focus Elements that are over and above KPO’s day to day business activities to deliver tangible benefits and improvements.

In 2023, KPO applied a structured approach in preparation of the HSE Improvement Plan to ensure the Plan and the KPIs support each other and HSE objectives are achieved.

Tab. 13.2023 KPO HSE Improvement Plan consisted of level I-II-III interlinked objectives

Monitoring of the Plan was arranged by means of Traffic Light system (Green, Yellow, Red) applied to Levels I, II and III.

To achieve the common goal of zero incidents, KPO words together with its stakeholders to implement the Plan and strengthen safety barriers. The subordinate plans with more details are implemented to address the Improvement Plan’s objectives.

In the following paragraphs, we present the activities implemented in 2023 on HSE Leadership, HSE Culture and Road Safety. Environment protection, Asset Integrity, Risk Management and Health activities are covered in relevant chapters.

HSE leadership and culture

In order to prevent accidents and injuries, to protect our people, environment and assets, the Safety Leadership and Culture Program was launched in KPO in July 2023. The approach was to build our in-house capabilities and develop own resources.

With this purpose, and based upon certain criteria, candidates were selected for the “Train the Trainer” course. Approximately 200 candidates were interviewed, of whom 88 KPO employees and contractors’ personnel were selected and trained. They attended a three-day “Train the Trainer” course to become SLC Coaches delivering Safety Orientation sessions for all KPO and contractors’ employees. 372 sessions were held and 5,506 KPO employees and contractors were covered against the target to cover 4,500 people.

Aimed at implementing the plans and general vision of the Safety Leadership and Culture Programme, two Commitment workshops were held for Directors and Managers of KPO and contractor companies performing medium and high-risk activities for KPO.

Team members were identified and Project Management Office (PMO) established to coordinate the implementation of the program. Nine monthly meetings of PMO were held. The main objectives of PMO were to:

• Provide overall governance, direction and strategy of Safety Leadership and Culture Programme implementation;
• Develop a strong partnership between KPO and Сontractors;
• Address issues regarding Safety and Leadership Culture Programme implementation.

In July and December 2023, an anonymous Pulse Survey was conducted to understand the state of the company’s safety culture. Both KPO and Business Partners employees took part in the surveys. Based on the surveys’ results and feedback from the SLC Orientation sessions and from the Safety Commitment workshops, some areas for improvement were identified which require more work to be done in 2024.

SLC Coaches recognition event was held in December 2023 to sum up the results of 2023 work.

HSE Promotion and Awareness-Raising Tools

The Company’s key commitment is to ensure health, safety and environment.

Thanks to the concerted efforts of all HSE functions all the scheduled activities and campaigns related to the HSE communication enhancement were 100 % completed in 2023.

The quarterly HSE quiz was launched. Every employee could check his/her basic HSE knowledge and, if won, receive a gift. In addition, the continuous focus was made on prompt communication and raising awareness of employees through daily pop-up messages and regular Safety Moments on relevant topics and preventive recommendations. Throughout the year 15 Safety Moments were issued covering different topics such as hearing protection, importance of reporting near misses, recent hand and finger injury cases in KPO, and other.

In April 2023, in anticipation of the World Day for Safety and Health at Work, the 2022 award ceremony for the best HSE performance took place in KPO. The Unit-2 team received the main award in the nominated category “Best KPO Department Health and Safety Performance of the Year”. “Yelzhas” company became the winner for the best performance among the s companies. The honorary award was also given to Schlumberger company for safety commitment and best practices in safety enhancement.

The winners of individual awards for intervention and reporting of potential hazards and unsafe behaviour received the monetary award. Besides, the incentive monetary awards were also given to those who made the particular contribution to the safety improvement and supporting various health and safety initiatives and campaigns additionally to their main job.

In August 2023, the Safety Day on the topic “Stop Work Authority” took place at all KPO facilities. The agenda covered the statistics on injuries sustained over the period of 2022–2023, the video-message from General Director and the reminder to promote and empower every employee on the authority and a duty to stop any unsafe activity or unsafe act.

The Annual HSE Forum has been an integral part of communication tool over the years. In November 2023, KPO held annual HSE Forum with its contractors on the theme ”Leaders in change”. The Forum involved the Senior Management of KPO and key contractor organisations. The Forum was also livestreamed allowing more participants to join online. The purpose of the Forum was to jointly review current changes and challenges in Health, Safety and Environment and the role of Leaders in effective implementation of changes as well the improvement of an overall Safety Culture at the Karachaganak Field.

The topics covered within the forum: changes to RoK Eco Code and KPO Waste management process; changes to the KPO and Business Partner processes of Random alcohol screening and Fitness to work; Road traffic incidents and violations; Stop Work Authority; Safety Leadership and Culture.

In order to efficiently engage each of attendees into discussion, they were involved into separate interactive sessions, team tasks and surveys to enable comprehensive analysis of current cultural behaviours and beliefs and planning of improvement and prevention activities.

In July 2023, Contractor HSE management workshop was conducted with KPO contract owners / KPO designated persons on the key responsibilities and expectations in Contractor HSE management. The workshop was chaired by General Director to stress on the importance of the process and the role of contract owners and KPO designated persons in achieving the goal of zero harm and zero leaks. Workshop discussion covered the key responsibilities in managing Contractor HSE, increasing involvement of Contractors’ Senior Management in HSE tours, concerns/suggestions/actions for further improvement of the process etc.

With the aim of Safety Culture improvement, the following leading HSE indicators/targets were set as mandatory for employees to receive the 2023 Annual HSE Bonus:

• The ratio of Near Misses (NM) reported to total man-hours shall not be less than the yearly target of 2.6;
• By the end of the year, employees were to undergo LSR e–learning “Working at Height” and make at least one positive intervention or a safety improvement discussion with colleagues.
• KPO managed to reach the target at least 2.6 ratio of Near Miss reporting versus total man-hours, and HSE bonus was paid to those KPO and manpower employees who timely underwent the e-learning and completed online report on intervention.

Management presence on work sites

For tracking the overall HSE performance and management interaction with employees at work sites, KPO practices HSE site tours: HSE Leadership tours engaging KPO Directors/Controllers, as well as Contractors’ senior management, and HSE Management tours for Level 2-3 Managers. The main principle of this program is interaction with the workforce.

In 2023, the total number of HSE Leadership tours amounted to 176 compared to the planned 83 having resulted in 212 % plan completion and HSE Management tours amounted to 944 compared to the planned 350 having resulted in 270 % plan completion.

IN 2023, HSE LEADERSHIP TOURS RUN BY THE TOP MANAGEMENT COMPLETED BY 212%, AND BY THE MIDDLE MANAGERS – BY 270%.

Road safety

To ensure more sustainable road safety performance, KPO continues implementing its annual Road Safety Improvement Plan. In 2023, KPO has completed 88 % activities of the Plan.

The key road safety achievements/implemented activities in 2023 are:

• ISO 39001: Road Traffic Safety Management System – successful (zero non-conformities) pass of 1st surveillance audit;
• Update of IVMS and Dashboard camera management and Load Haulage Safety procedures;
• Road traffic safety assurance review of 13 top low-performance contractors;
• Workshops for contractors on safe load transportation and driver’s fatigue management;
• Mini forums with drivers to share experience and receive proposals on road safety improvement;
• Road Safety Stand-Down for drivers on risks of driving in winter, including risk of hitting animals on the roads;
• Joint ventures (TCO, NCOC, CPC and KPO) collaboration meetings on road safety;
• Catastrophic RTI drill with involvement of KPO Emergency Response and Health teams;
• Implementation of stickers with QR code in all vehicles to give access to drivers to all the main road safety information / requirements;
• Update of KPO Road Hazard Assessments for the main routes (new hazards, risks, control measures, new format) and upload to KPO Intranet;
• Implementation of Blue driver category (100 points) in IVMS RAG report and revision of points within green, amber, red driver categories;
• Driving competence assessment of more than 200 drivers both randomly and by applying risk-based approach, e.g. based on IVMS BRAG reports, vehicle type, load type, km driven.

Also, within the framework of cooperation on road safety improvement with the authorities and the community, KPO carried out/participated in the following activities in 2023:

• At the initiative of the Burlin Region’s Education Department, in May and June 2023, KPO took part in road safety awareness events for children, which included conducting contests and memorable gifts for participants;
• KPO renewed road safety billboards in Aksai;
• KPO sent a letter to the authorities in June 2023 with road safety improvement proposal with regard to the roundabout on the way from Aksai to the Field and the it was implemented by the authorities.