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Driving health, safety and environmental performance

The Group continued its quest to improve HSE performance in 2016/2017 and remains focused on becoming an industry leader in HSE practices in countries where we have operations, with the intention of minimising the Group’s impact on the environment and providing safe and healthy working conditions for all our employees.

The Group’s seven guiding principles underpinned in its HSE policy

Compliance and standards

Reporting and monitoring

Continuous improvement

• Focus on complying with, but also exceeding where possible, all applicable HSE laws and regulations

• Compliance with all internal standards

• Compliance with generally accepted environmental practices and established industry codes of practice

• Regular evaluation and monitoring of the impact of past and present business activities on HSE matters

• Comprehensive quarterly reporting of HSE matters to SacOil’s Board of directors

• Use of innovative design and engineering to reduce the environmental impact of each of the Group’s operations throughout the asset’s life cycle

• Efficient use of natural resources, including energy to minimise waste streams and emissions

The HSE Policy outlines in comprehensive fashion, the Standard Operating Procedures which promote a culture of health, safety and protection of the environments in which the Group operates. It provides practice guidelines to management, staff, contractors and other affected role players. The Group has endeavoured to stay true to its primary HSE objective as espoused in its Code of Business Conduct, viz, that the health and safety of its employees and the communities in which it operates are fundamental to the sustainability of the Group’s operations, which makes adherence to HSE standards non‑negotiable. The Group also remains committed to ensuring that in instances where it may not be an operator, but has a shared business interest, that its operating partners share and practise the same commitment to HSE. This is monitored through the operating management structures.

Review of HSE performance

During 2016/2017 the Group focused on the implementation of the HSE Policy introduced in the previous financial year. Key focus areas included:

•    the improvement of Group-wide Standard Operating Procedures for alignment with the legislative and regulatory frameworks in Egypt;

•    accident monitoring and prevention programmes;

•    implementation of ISO 31000 to further enhance the Group’s total quality management approach and activities; and

•    monitoring the Group’s impact on the environment.

Improvement of Group-wide Standard Operating Procedures

To ensure compliance with Egyptian General Petroleum Corporation regulations (“EGPC”), Egypt’s Oil and Gas Health, Safety and Environment (“EOGHSE”) forum guidelines and international oil and gas industry best practices, an internal HSE review and self-assessment were conducted. The HSE self-assessment focused on the following:

•    identification of HSE risks and the assessment of internal control adequacy;

•    verification and development of health and safety plans;

•    assessment of the adequacy of protective equipment;

•    assessment of training needs for supervisory and execution personnel;

•    assessment of the suitability of access controls for designated areas, such as gas storage and confined spaces;

•    assessment of field-wide equipment to determine if it is fit for purpose; and

•    verification of overall compliance with EGPC regulations.

Following on from this, a number of initiatives have been successfully implemented. These initiatives have contributed to the impeccable safety record which the Group has maintained since acquiring the asset in 2014, notwithstanding the extensive drilling, steaming and hydraulic stimulation programmes that have been undertaken at the Lagia Oil Field.

Prevention programmes, accident monitoring and incident reporting

The enhancement to the Group’s accident prevention programmes was a direct result of the HSE review and self-assessment performed during the year. Enhancements made to the Lagia Oil Field include improvements to signage, fencing off of high-risk areas and installation of explosive-proof switches and gas detectors. The Group also saw an improvement in the practices around accident monitoring, from the alignment of the HSE Policy with the EGPC regulations and EOGHSE guidelines. We continue to evaluate and monitor the impact of past and present business activities on HSE matters as a preventative tool to improve safety and health performance.

The Board received the relevant quarterly reporting with respect to HSE matters during 2016/2017. We are proud to report that there were no reportable injuries or fatalities at any of our sites. In addition, there were no major or minor environmental incidents. A major environmental incident would be where rehabilitation and restitution would be required. All other incidents are categorised as minor.

Implementation of ISO 31000

The Group has implemented its HSE plans in keeping with the ISO 31000 framework which also guides its overall ERM framework of which HSE forms an integral part. The focus to date has been on implementing the HSE Policy and HSE processes. This has included improving the governance structure, HSE risk assessment, improvement of HSE controls and reporting on HSE matters. Ongoing reviews of enterprise risks include HSE exposure.

Monitoring the Group’s impact on the environment

During the year under review the Group implemented measures to monitor the impact of its operations on the environment. We monitored the Group’s CO2 emissions and water and energy consumption which will now form a base for future targets to further minimise the impact of our operations on the environment. The Group’s water and energy consumption and carbon footprint primarily arise from steaming operations at the Lagia Oil Field in addition to day‑to-day water and electricity usage at the Group’s various offices and travel related to business development activities and operations. The process to monitor and report our environmental performance will continue to evolve as the Group aligns its practices with industry norms and integrates AfricOil. The acquisition of AfricOil will now require the Group to also monitor the impact of its fleet on the environment in addition to the usual parameters. The Group’s environmental performance metrics are highlighted alongside.

Focus areas for 2017/2018

•   Establish a baseline for the enlarged Group’s carbon, energy and water footprint

•   Improve the Group’s carbon footprint and energy and water efficiency

•   Fleet safety and security following the acquisition of AfricOil

•   Independent health assessments