2014 ADNOC SUSTAINABILITY REPORT
RISING TO THE ENERGY CHALLENGE H.H. Sheikh Khalifa bin Late Sheikh Zayed bin H.H Shaikh Mohamed Bin Zayed Al Nahyan Sultan Al Nahyan Zayed Al Nahyan President of the United (May Almighty Allah rest his Crown Prince of Abu Dhabi and Arab Emirates soul in peace) Deputy Supreme Commander Founder of the United of the UAE Arab Emirates
“The Emirate of Abu Dhabi will continue to work towards its own comprehensive, multifaceted vision. That vision is to continue to create a confident, secure society and to build a sustainable, open and globally competitive economy.’’ H.H. Sheikh Khalifa bin Zayed Al Nahyan
Cover photo ‘The Wisdom Tree’ - courtesy of Rashed Saad Al Sumaiti, winner of the 2014 ADNOC Sustainability Photo Contest CONTENTS
Introduction from the Director General 7 About ADNOC 8 How we operate 16 People 24 Environment 34 Society 44 ADNOC HSE Award 54 GRI Index 60 Acronyms and abbreviations 70 Independent assurance statement 72 About our reporting 74 Report contributors 75 Introduction from the Director General Welcome to ADNOC’s Sustainability Report for 2014. At ADNOC, we regularly pass milestones that are important reminders of the value we bring to our society and economy. This report is an opportunity to reaffirm the commitments we make to our stakeholders regarding our sustainability performance. Our success along this path is owed to the UAE’s wise leadership and is reinforced by our technological expertise, operational excellence, HSE performance, long term strategic plans, global reach and the unwavering ethical standards and management practices we build into the fabric of our operations.
The energy transition of ADNOC’s Group Companies, culture and has long been part where it will be used to enhance of our day-to-day operations. In Modern society consumes oil recovery and ultimately be 2014, we re-launched the revised energy on a much wider and stored underground. ADNOC HSE Codes of Practice more complex scale than ever Manual, which represents the before. By 2050, the world’s foundation for a stronger and population is projected to More collaboration more robust governance of HSE rise from 7 billion to nearly 9 As a company with global in all aspects of our operations. billion. As a key player in the outreach, we have a significant energy industry, ADNOC has role to play in the energy a responsibility to protect and transition. ADNOC’s ability Understanding the impacts shape future energy markets in to innovate combined with of our activities, both positive the face of population growth our experience of working and negative, is an important and short term instabilities and in partnership with others component of how we operate. 6 challenges, such as the recent means that we can be We are taking significant 7 decline in oil price that was essential participants in the steps to reduce our flaring experienced towards the end of emerging energy system. In emissions and are engaging 2014, and to carve a pathway 2014, ADNOC’s fully owned the communities which may that will deliver a sustainable refining subsidiary company be affected as a result of our supply of energy to the world in TAKREER entered a joint operations in the local area. In the most efficient way possible. venture partnership with Total, 2014, ahead of drilling a new gas Etihad Airways, Boeing and well in the Shweihat area of the Western Region, we undertook a To meet these needs and Masdar Institute of Science series of dialogues with them to transition towards a lower and Technology to deliver a ensure their requirements were carbon future, our energy sustainable and commercially met and concerns adequately policies and investments must viable aviation biofuel supply addressed. The support of our adopt real world solutions chain in the UAE. The initiative, communities is imperative to "As a key player in the energy industry, we have a with tangible economic and named ‘BIOjet Abu Dhabi: the long term success of our environmental benefits. To Flight Path to Sustainability’ is responsibility to protect and shape future energy markets and business. Across all of these this end, ADNOC’s new joint the first in the Middle East and issues and more, our aim is to to carve a pathway that will deliver a sustainable supply of venture company with Abu is aligned with the Abu Dhabi maintain a company that is Dhabi Future Energy Company Economic Vision 2030, which energy to the world in the most efficient way possible." resilient in challenging times and (Masdar) named ‘Al Reyadah’, seeks to develop sustainable continues to deliver on-going which means ‘leadership’ in energy sources to diversify the returns for our stakeholders H.E. Abdulla Nasser AlSuwaidi, ADNOC Director General Arabic, has been established UAE’s economy and increase and the economy and society Opening speech at Abu Dhabi Petroleum Exhibition and Conference to undertake a network of workforce opportunities for at large, whilst supporting our th carbon capture, usage and Emiratis. (ADIPEC), 9 November 2014 work to respect and protect the storage (CCUS) projects in the environment. Emirate of Abu Dhabi. The first Responsible operations of these projects is currently At ADNOC, we have long been underway, and aims to capture known for our strong focus on 800,000 tonnes of CO2 annually safety with the goal of no harm upon its completion in 2016. to people our communities The captured CO2 will be and the environment. This is compressed and transported to a strategic HSE objective that Abdulla Nasser AlSuwaidi oil fields operated by ADCO, one is embedded in our company Director General
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae About ADNOC ADNOC ORGANISATIONAL STRUCTURE ADNOC is one of the world’s leading oil and gas companies, with an annual oil production of over 2.7 million barrels per day and an integrated energy infrastructure ADNOC Audit and Assurance Division comprised of 15 specialist subsidiary and joint venture DIRECTOR GENERAL companies known as the ADNOC Group Companies.
Business Line Directorates Supporting Directorates We aim to create long-term manufacture of petrochemicals opportunities, a portfolio value for stakeholders by and global marketing. of world-class projects and Exploration and Production Strategy and Coordination helping to meet the growing a diverse set of producing Directorate Directorate demand for energy in a safe ADNOC’s headquarters are assets. Upstream also operates and responsible way. We strive located in Abu Dhabi, UAE. the infrastructure necessary • ADCO (100%) to be a world-class operator, a Our new head office, which to deliver oil and gas to the Abu Dhabi Onshore Petroleum Company Ltd. Corporate Support • ADMA-OPCO (60%) Directorate responsible corporate citizen is being constructed towards market. Abu Dhabi Marine Operating Company and a good employer. LEED certification standards, • ZADCO (60%) Zakum Development Company will provide improved services • NDC (100%) Finance Thriving on a spirit of and facilities to our staff, National Drilling Company Directorate enterprise and a commitment visitors and stakeholders. Our Downstream to safely and reliably deliver major operations are based in Downstream is the business Human Resources energy to our domestic and the UAE. that manufactures oil products Gas Processing Directorate global consumers, our Group and petrochemicals, and Directorate Companies’ operations cover supplies fuels, lubricants and Administration all aspects of the hydrocarbon • Al Hosn Gas (60%) other high-value products and Directorate value chain, including crude Upstream Abu Dhabi Gas Development Company Ltd. feedstocks to our local and • GASCO (68%) oil and natural gas exploration, Upstream encompasses global consumers. Abu Dhabi Gas Industries Ltd. 8 production, refining, processing, high-quality exploration • ADGAS (70%) 9 Abu Dhabi Gas Liquefaction Company Ltd. • ELIXIER (51%) • ADOC* ADNOC Linde Industrial Gases Company Ltd. Abu Dhabi Oil Company Ltd. • BUNDUQ* Bunduq Company Ltd.* • TOTAL ABK* TOTAL Abu Al Bukhoosh Marketing and Refining Directorate
• ADNOC DISTRIBUTION (100%) (%) ADNOC share of ownership in each Group • ADNATCO & NGSCO Company • Abu Dhabi National Tanker Company (100%) * Independent Operators operate under National Gas Shipping Company (70%) ADNOC HSE Division directions for HSE matters • TAKREER (100%) Abu Dhabi Oil Refining Company EXPLORATION PROCESSING PETROCHEMICALS MARKETING AND AND AND REFINING PRODUCTION DISTRIBUTION PRODUCTION Petrochemicals Directorate
• Borouge Abu Dhabi Polymers Company Ltd. (60%) Borouge Pte Ltd. (50%) • Exploring for oil • Gas processing and • Producing • Shipping and trading • FERTIL (66.67%) and gas onshore natural gas liquid petrochemicals • Supply and distribution Ruwais Fertilizer Industry and offshore (NGL) extraction (polyolefins including • Developing fields • Refining crude polyethylene and • Producing oil and oil into various polypropylene as well Shared Services gas products including as urea and ammonia) Directorate fuels and lubricants • ESNAAD (100%) • IRSHAD (100%) Abu Dhabi Petroleum Ports Operating Company
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae ADNOC Group Companies Integrated energy infrastructure comprised of 15 Group NDC • Provides onshore and offshore Companies operating onshore and offshore and covering all drilling services to the ADNOC aspects of the petroleum value chain. Group Companies • 2,617,120 feet drilled in 2014 • Operates: - 15 offshore jack-up drilling ONSHORE OFFSHORE rigs and 4 offshore island drilling rigs - 33 land drilling rigs - 5 water-well rigs (to survey ADCO GASCO Al Hosn Gas ADMA-OPCO ZADCO the quality, quantity and • Operates 6 major onshore fields: • Operates 3 desert plants for gas • Operates the Shah Gas Field • Operates 2 offshore fields: • Operates 3 offshore fields: distribution of groundwater in Asab, Sahil, Shah, Bab, Bu Hasa, North processing and natural gas liquids (220 km south west of - Umm Shaif: 360km2 in size, located - Upper Zakum (UZ): 1,269 km2 in the Emirate of Abu Dhabi) East Bab fields (Al Dabbiya, Rumaitha (NGL) extraction: Asab, Bu Hasa, Abu Dhabi) 150km north-west of Abu Dhabi size, located 84 km north-west of - 1 multi-purpose service vessel and Shanayel) and Habshan / Bab complex (Bab • Complete facilities expected to - Zakum: 1,270km2 in size, located 65km Abu Dhabi • The Bu Hasa field is one of the top has additional sour gas treatment Condensate be operational by 2015, with a north-west of Abu Dhabi - Umm Al Dalkh (UA): 150 km2 in twenty fields in the world in terms facilities) & sour gas production capacity • The Zakum field is the second largest size, located 25 km north-west of of proven reserves • Operates an NGL Fractionation Natural Gas Liquids of 1,000 million standard cubic offshore field in the Gulf and the fourth Abu Dhabi • Total concession area covers over Plant in Ruwais feet per day (MMSCFD) over largest field in the world. It contains - Satah (ST): 35 km2 in size, located ADNATCO & NGSCO 2 Associated 21,000 km and Non- • Operates a pipeline distribution the field’s lifetime five separate zones which make up 200 km north of Abu Dhabi • Provides international marine • 2 export terminals: Jebel Dhanna associated network to route natural gas to Lower Zakum and Upper Zakum. Field • Oil operation centres on Zirku Island transportation of LNG, Gas Terminal and Fujairah Terminal several industrial consumers development has been centred on the (140 km north-west of Abu Dhabi) petroleum products, bulk • Over 1,300 oil and gas wells • Overseeing several major expansion lower zones in view of their superior and Arzanah Island (180 km north- sulphur and polyethylene • Current oil production capacity of projects, implementing new gas Sales productivity west of Abu Dhabi) • Operates a fleet of: 1.4 million barrels of oil per day (bpd) processing facilities and revamping Gas • 37 platforms • Major expansion project underway at - 8 LNG Carriers with plans to increase to 1.8 million existing ones • 408 oil and gas well heads (some of Upper Zakum. This project, known as Sulphur - 9 Oil & Chemical Tankers bpd by 2017, by initiating production which are shared with ZADCO) Upper Zakum 750 (UZ750) aims to from 3 new fields: Qusahwira, Mender Sales increase production from 600,000 - 7 Bulk Carriers and Bida Al-Qemzan Condensate & Gas - 2 Container Vessels Ethane Natural Gas bpd to 750,000 bpd by 2017 Liquids - 1 LEG Carrier Network & Industrial Consumers Crude Oil Crude Oil Associated and Associated Gas Crude Oil Non-associated Gas Refined Products (Export) ESNAAD Fujairah Export Terminal Ruwais • Provides a range of facilities, Sulphur Terminal Associated Gas services and supplies to the oil 10 Jebel Dhanna Terminal and gas sector, including: 11 Das Island Zirku Island - Offshore marine support BOROUGE FERTIL services (ESNAAD operates TAKREER • Operates 3 ethane crackers with a • Operates two Ammonia Plants a fleet of 47 vessels) combined annual capacity of 3.6 and two Urea Plants in the Ruwais - Berthing, bunkering and bulk • Operates two oil refineries: Hydrogen million tonnes and 9 polyethylene and Industrial Complex: LNG, LPG, ADGAS supply Praffinic - Abu Dhabi Refinery: located polypropylene plants with an annual - Ammonia: total capacity of 3,300 - Port services in Umm Al Nar, capacity of Naphtha and • Operates a Liquified Natural Gas manufacturing capacity of 4.5 million metric tonnes per day Sulphur (LNG) Plant on Das Island (180 km - Well services 80,000 barrels of oil per day tonnes; all located in the Ruwais - Urea: total capacity of 5,800 - Ruwais Refinery: capacity of north-west of Abu Dhabi) - Drilling fluids services Industrial Complex metric tonnes per day • The LNG Plant is unique worldwide in - Specialised production 817,000 barrels of oil per day • Operates a compounding • Total urea export of 1.9 million its ability to process both associated chemicals • Capacity at the Ruwais refinery manufacturing plant in Shanghai, metric tonnes per year increased in 2014 from 417,000 gas, which is a by-product of oil • Operates a Grinding Plant, China. Currently being expanded from extraction processes, and natural gas bpd to 837,000 bpd upon Blending Plant and Brine Plant 50,000 tonnes to produce 90,000 extracted as a free product from gas completion of the Ruwais tonnes of compounded polypropylene Integrated Gas in the Mussafah Offshore Refinery Expansion (RRE) Project Development reservoirs per year Project • Average annual production: Supply Base Urea and Liquid Ammonia 8 million tonnes of Liquified Natural Gas (LNG), Liquified Petroleum Gas (LPG), paraffinic naphtha and liquid Ethylene, Polyethylene and sulphur Polypropylene Resins Refined Products IRSHAD Refined Products (Local Sales) • Provides marine services to the petroleum ports of Abu Dhabi Nitrogen (Ruwais, Jebel Dhanna, Das (Gaseous / Liquified) End Users Island, Zirku Island, Zakum Field and Mubarraz) and Fujairah Port ADNOC DISTRIBUTION ELIXIER KEY • Services include: - Pilotage, berthing / • Operates 223 motor vehicle • Operates two facilities: unberthing of O&G tankers service stations across the UAE, - Ruwais Air Separation Plant: provides Flow of existing products and the loading of oil products and has taken over 75 petrol gaseous and liquefied nitrogen stations in the Northern Emirates to Borouge via pipeline; liquefied - Offshore terminal maintenance, inspection and • Provides a range of services: nitrogen to ADNOC subsidiaries via Flow of future products - Storage and distribution of tanker; and liquid oxygen to end associated diving operations liquid fuels and LPG users in the UAE - Operational and technical - Lube oil and grease production - Mirfa Nitrogen Plant: consists of Industrial terminal for management of a fleet of 50 and marketing two identical air separation trains processing, storage and export of products vessels of which 10 ASD Tugs, - Bunkering (marine) and aviation to provide nitrogen (capacity of 4 tail back boats and 4 pilot fuelling 670,000 Nm3/h) for injection into Major projects boats are ADNOC owned - Auto services gas reservoirs located at Habshan - Convenience stores
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Products and markets Transporting oil, gas and petroleum products is a challenge First shipment of we meet every day to meet our customers’ needs while new ‘Das Crude’ upholding stringent environmental and safety standards. blend
ADNOC successfully North and South America Asia exported the first Crude oil exported Crude oil exported shipment of its new (‘000 bbl) (‘000 bbl) blend ‘Das Crude’, 4,875 697,231 produced by ADMA- OPCO, on July Refined products exported Refined products exported th (‘000 tonnes) (‘000 tonnes) 4 - a date which Jet oil: 123 Naphtha: 4,850 coincides with the 52nd Jet oil: 36 Anniversary of ADMA- Sulphur exported Gas oil: 472 OPCO’s first crude (‘000 tonnes) Fuel oil: 572 shipment from Das Sulphur: 42 Gas and sulphur exported Island. (‘000 tonnes) Sulphur: 711 Das Crude is a blend LPG: 7,411 of the previous Umm Paraffinic naphtha: 2,467 Shaif and Lower Zakum grades, and was introduced to the market in line Crude oil and condensate Petrochemicals with SPC directives The main onshore grade for our ADNOC’s petrochemicals are for a competitive crude oil is Murban. Our offshore produced by Borouge and specification that grades include Das Crude (a FERTIL. matches international newly introduced high quality standards and 12 crude blend from the Umm Shaif Borouge is a leading increases flexibility and 13 and Lower Zakum oilfields) and provider of innovative, value profitability. Upper Zakum. creating plastics. Borouge’s petrochemical manufacturing ADMA-OPCO’s plan plant is located in Ruwais. to increase production In 2014, Borouge took an is another reason for creating the new blend. Petroleum products unprecedented step forward and expanded the petrochemical The company has plans ADNOC’s refined products plant’s annual capacity by a to boost production are produced by TAKREER. further 2.5 million tonnes per by 100,000 bpd at the They are sold domestically by year from the previous 2 million Lower Zakum field, ADNOC DISTRIBUTION and are tonne per year capacity, under reaching 425,000 bpd also exported to international the name ‘Borouge 3 Expansion by 2016. In addition, markets. Project’. As a result, the Ruwais the new production facility is the largest fully- planned from Nasr integrated single-site polyolefins Field, expected at complex in the world with a 65,000 bpd over the Gas and sulphur capacity to produce 4.5 million coming few years, Africa Europe Australia and Sulphur is a valuable by-product tonnes of polyethylene and along with the current Crude oil exported Crude oil exported New Zealand of our operations. Sulphur polypropylene annually. Umm Shaif production (‘000 bbl) (‘000 bbl) Crude oil exported of 275,000 bpd, will 5,045 3,054 production is set to increase (‘000 bbl) bring the total ADMA- 15,597 significantly when production FERTIL is a leading producer Refined products exported Refined products exported commences from the sour and supplier of granular urea OPCO oil production (‘000 tonnes) (‘000 tonnes) Shah gas field, currently being and ammonia fertilizers in the coming to Das Island for Jet oil: 332 Jet oil: 2,032 Middle East with global exports processing, storage and Gas oil: 240 developed by Al Hosn Gas. ADNOC also markets its share to the Indian sub-continent, Far export up to around 765,000 b/d, which is Gas and sulphur exported of liquified petroleum gas (LPG) East, Africa, USA, Latin America (‘000 tonnes) and paraffinic naphtha, which and Australia. About 6% of its part of the company’s LPG: 40 are produced by GASCO and annual production is marketed overall scheme to Sulphur: 1,401 ADGAS. locally within the United Arab increase production to 1 Emirates, while 94% is exported. million barrels per day.
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae for major new projects where members of industry bodies Customers our presence may bring about such as the International Stakeholders ADNOC’s millions of customers changes in the local areas, Association of Oil & Gas As an energy supplier, we have many responsibilities - to range from consumers such as jobs and support for Producers (IOGP) and the our employees, contractors and partners, government and purchasing our fuels and community development, as American Petroleum Institute lubricants to large-scale regulators, industry and community. well as increased road traffic (API). industrial customers of oil, and changes in the landscape. natural gas and petrochemicals. We engage with local Through our concerned Group communities through public Working together with business success. We keep our Training and dialogue also Companies, we engage with consultations and meetings Academic institutes our stakeholders allows employees informed about the help build the capability of our customers about supply chain with local representatives. us to appreciate different context within which they work contractors. See pages 20 - 21 In addition to establishing our management, GHG emissions See page 47 - 48 for more three academic institutes, which viewpoints and maintain a and have established channels for more information. and the sustainability of our information. include the Petroleum Institute, global perspective on our most for our employees to raise products across their life cycle, we collaborate with research material topics. It also helps us concerns across our operating among other topics. See page institutions on various initiatives build mutually beneficial and sites. We have an ongoing 21 for more information. across the UAE to encourage long-lasting relationships and dialogue with our employees Government and Industry more youth towards innovation create opportunities that are about a wide range of issues, regulators We work through industry and excellence on future energy aligned with their interests. including benefits, development We engage with the local and groups to help establish and sustainable development. This is fundamental towards opportunities and diversity. federal government on many standards and address complex See page 50 - 52 for more helping us continue to improve See pages 30 - 33 for more fronts, and aim to maintain energy challenges, and we are information. our company. We use a variety information. dialogue with all ministries, of mechanisms to engage government agencies and our stakeholders, including regulatory departments at internal and external one-on- Suppliers, contractors every stage of our operations. 2014 Material topics one and group dialogues and and partners We engage in policy debates briefings, senior executive Material topics that are of concern to us and We identified the following speeches and press releases, Like our industry peers, ADNOC A key step in developing the content of this the communities in which we issues as being of high community consultations, rarely works in isolation. operate, such as carbon and Sustainability Report is ensuring the content focuses concern to stakeholders email communications, and For example, the Shah Gas water management, security on the sustainability challenges and subjects that and of high significance for publications such as the Annual Development Project operated and nationalisation. See page matter most to our stakeholders and people who have ADNOC, and are therefore Sustainability Report and our by Al Hosn Gas employed over 38 for more information. an interest in our activities. emphasized in this report: 14 quarterly newsletters. 43,000 contractors at its peak 15 in 2014. Safe and responsible • Occupational health and operations depend on the safety management capability and performance of We use a structured approach frameworks, industry and peer • GHG emissions Local communities Employees our suppliers, contractors and to select the report’s content, reporting practices, media • Hydrocarbon flaring partners. To this end, we set Our relationships with which is informed by internal coverage and public domain. • Energy consumption Our nearly 60,000 employees operational standards through communities are important for priorities as well as external The information is gathered in • Energy efficiency are the drivers for our continued legally binding agreements. all our activities, but particularly focus areas, as highlighted different ways including formal • Water consumption in international reporting meetings, workshops and • Local communities standards, local and federal online feedback. engagement policies and regulatory • Employment • Training and development • Emiratization Our approach to materiality
Internal External priorities priorities
Input from internal experts Audience research Risk register External reporting trends Business priorities Industry benchmarking and peer review International media review
Material issues judged as those that represent significant external concerns that also match internal priorities
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Corporate governance We are committed towards the highest level of corporate governance and strive to foster a culture that values and rewards personal and corporate integrity and respect for others.
Supreme Petroleum under both ADNOC and Council Abu Dhabi protocols. An independent audit committee, The Supreme Petroleum appointed by the SPC, reviews Council (SPC) is the highest ADNOC’s financial performance authority responsible for and reports, as appropriate. the petroleum industry in the Emirate of Abu Dhabi. The Council formulates and Additionally, as part of its oversees the implementation mandate to review key of Abu Dhabi’s petroleum government-owned entities, policy and follows up its the Abu Dhabi Accountability implementation across all areas Authority (ADAA) provides of the petroleum industry to independent external assurance ensure that the set goals are that ADNOC’s activities are accomplished. managed economically, and ensures accuracy of the financial reports as well as The SPC functions as ADNOC’s compliance with the relevant governing board and oversight regulations. committee. H.H. Sheikh Khalifa Bin Zayed Al-Nahyan, the 16 17 president of the UAE and Ruler ADNOC’s operations and major of Abu Dhabi, is the chairman developments are funded of the SPC. primarily from the company’s own cash flow. Surpluses are available for distribution as dividends. These are paid to Financial governance the Abu Dhabi Investment Authority (ADIA) and Abu ADNOC reports directly to the Dhabi Investment Council SPC on matters of strategy and (ADIC), two of Abu Dhabi’s Highlights financial performance, which is sovereign wealth funds. regarded as highly confidential HOW WE OPERATE • 8 independent members of Our role to supply energy comes with many responsibilities — to our shareholders, neighbours, ADNOC’s governing customers and communities. Our employees, technical expertise, financial strength, and the Supreme Petroleum Council board management practices that we build into the fabric of our operations are central to establishing a high-performance culture and to creating long-term value for ADNOC and our stakeholders. Chairman • 8 HSEMS elements, H.H. Sheikh Khalifa bin Zayed Al Nahyan covering all aspects Achieving this requires a driven corporate governance structure that promotes the company’s of our operations vision and objectives; robust processes to effectively manage our HSE, security, quality and Members reputational risks; and effective emergency response practices that can be quickly mobilized in H.H. Sheikh Sultan bin Zayed Al Nahyan • 3 integrated levels the event of an incident. As we strive towards operational excellence, we will continue to seek H.H. General Sheikh Mohammed bin Zayed Al Nahyan of governing HSE new and improved ways that will help us perform better. We expect our contractors, suppliers performance and vendors to do likewise. H.H. Sheikh Mansour bin Zayed Al Nahyan H.H. Sheikh Hamed bin Zayed Al Nahyan • 3 tiers for H.H. Sheikh Mohamed bin Khalifa bin Zayed Al Nahyan emergency H.E. Mohamed Habroush Al Suwaidi response and crisis H.E. Hamad Mohamed Al Hur Al Suwaidi management H.E. Khalifa Mohamed Khalifa Al Kindi H.E. Eng. Abdulla Nasser Al Suwaidi
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Operating framework Operating with integrity Our commitment to an outstanding performance is built ADNOC is fully committed to operating with integrity and from the solid foundation of our long-standing Health, our operations specifically prohibit engaging in unethical Safety and Environment (HSE) policy, and is the foundation conduct. This extends to all aspects of our activities, of our oversight over our operations. This policy is also including how we engage third parties and contractors, embedded within our operating standards and our the security practices that we enforce and how we management systems. manufacture and deliver our products.
ADNOC Codes of as well as emerging industry- audited regularly by a dedicated Practice wide best practice. As part team of experts appointed of this update, seven new by the ADNOC HSE Division, To ensure that all aspects of ADNOC Codes of Practice were with representation from the health, safety and environmental introduced, some of which are ADNOC Directorates and the management are carried out highlighted in this report. ADNOC operating companies. successfully and consistently The operating companies are across the oil and gas sector also required to audit their own in Abu Dhabi, ADNOC has performance, in accordance ith established a centralised annual and five year plans that framework of operational HSE Management System are agreed upon with the HSE standards against which The ADNOC Codes of Division. compliance is mandatory. Practice provide structured These standards provide guidance for the development a comprehensive cover of of a comprehensive HSE The ADNOC HSEMS framework petroleum industry activities with Management System (HSEMS), is comprised of 8 integral distinct HSE risks or impacts, and covering all aspects of employee elements, as presented below. ADNOC’s operations and their requirements adhere to UAE and contractor activities. The Risk identification and Corruption and anti- activities are in compliance Federal Laws and Regulations. HSEMS is intended to serve • Leadership & Commitment mitigation competitive behaviour with the law and that ADNOC The operational standards are as an engine driving ADNOC • Policy & Strategic Objectives At ADNOC, we place great Our procedures require Group Companies abide by 18 collectively known as the ADNOC HSE policy implementation and emphasis on the identification appropriate due diligence in 19 • Organisation, Resources & their contractual agreements. Codes of Practice. continuous improvement in and mitigation of HSE risks at selecting and engaging third Competence It also helps to ensure the legal performance. every stage of our operations parties, the maintenance • Risk Evaluation & Management protection of ADNOC’s national to ensure that hazards are of accurate and reasonably The ADNOC Codes of Practice and international interests. Manual was first launched in Once the HSEMS is established, • Planning, Standards and identified and the associated detailed records of expenditures 2003. The Manual was updated the ADNOC Companies are Procedures risks mitigated to a level which is and the implementation ADNOC Group Companies are and re-launched in 2014 in expected to evaluate their • Audit as low as reasonably practicable and maintenance of specific subjected to audits by ADNOC’s response to ADNOC’s growing individual performance via a self- (ALARP). approval requirements for our • Implementation & Monitoring Audit and Assurance Division operations and new operating assessment protocol. The scores transactions. • Management Review (A&AD) in addition to regular conditions and environments, and the HSEMS overall are ADNOC Company activities, audits by their respective including new project ADNOC policy bans employees internal audit functions, where developments and major from making use of their jobs the reliability and integrity modifications to existing or positions to acquire an illicit of financial and operating ADNOC HSE Division facilities, are subjected to personal benefit or interest, • Develop ADNOC HSE information, as well as the • Review and develop compulsory Health, Safety financial or otherwise, from policy and strategy and means used to identify, measure HSE standards, and Environmental Impact accepting, directly or indirectly, maintain overview of and report such information, are policies and ADNOC Assessments (HSEIAs). The any gift, commission or donation corporate HSE performance carefully evaluated. Furthermore, Codes of Practice framework by which HSEIAs from any person who has work • Verify compliance by the these internal audit functions • Consult with Group should be prepared prior relations with ADNOC. Companies on any ADNOC Group Companies assist the Group Companies’ with HSE standards, to submission to ADNOC is proposed changes audit committees and policies and the ADNOC clearly stipulated in the relevant The ADNOC Disciplinary to the workplace, respective senior management Codes of Practice ADNOC Code of Practice. Code specifies that misusing a practices of in the deterrence of fraud by procedures that could • Liaise with Federal position in ADNOC or a Group ADNOC HSE Steering evaluating controls in relation to affect HSE functions Committee authorities on behalf of HSEIAs are thoroughly reviewed Company for the acquisition the potential risks. Individual Group ADNOC Group Companies by the ADNOC HSE Division or acceptance of bribes or Company HSE and the ADNOC HSE Steering personal benefits from other Divisions Known incidents of fraud or Committee, and must ultimately employees or outsiders will corruption are investigated be approved by the ADNOC result in dismissal without and reported to concerned HSE Steering Committee before notification or benefits. authority in Group Companies project execution can proceed. • Responsible for all managerial and operational aspects of HSE or the ADNOC Head Office for ADNOC’s Legal Division appropriate action. • Co-ordinate with the ADNOC HSE Division on all HSE matters is responsible for ensuring
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Security of Practice, ADNOC standards and procedures, and UAE Laws Security for ADNOC’s and Regulations. In addition, onshore and offshore facilities Saving resources with Borstar® specific HSEMS expectations is provided by the Critical HSE Scorecard Program have been set to ensure enhanced polyethylene Infrastructure and Coastal effective management of Protection Authority (CICPA), contractors’ HSE performance. which was established in Al Hosn Gas 2007 to ensure the safe and Borouge uninterrupted operation of The management of contractor’s safety is fundamental assets critical to the economy in ‘high-risk’ industries especially the drilling industry. In Environmental concerns have led to governments taking steps of Abu Dhabi. CICPA, a separate January 2014, ‘Al Hosn Gas Drilling HSE Scorecard Program’ Product stewardship to deal with issues of packaging waste and recycling. One effect body of the government of was developed to encourage contractors to better manage We seek to work with those of the environmental legislation has been to reduce the amount of packaging by lightweight or down gauging of materials. Abu Dhabi, works closely with and measure HSE performance. involved in the life cycles ADNOC to develop plans and of our products to enhance Specific to the plastic flexible consumer or industrial packaging procedures regarding the The criteria were selected to be appropriate for the drilling environmental and social industry, converters have felt the need to continuously down security of ADNOC installations. activities and a monthly performance report was issued at performances along the gauge the package thickness or to increase the amount of different levels of the organization (i.e. management, front supply chain and to promote recycled content, whether due to cost savings initiatives or responsible product use and a push by their end users / brand owners. Borstar Enhanced The international shipment of line supervision, etc.). By grading each contractor’s effort in our products necessitates that management. Polyethylene (PE) and other more advanced materials in the several key areas, focus and attention can be brought to bear ADNOC adopt the highest market can perform this function. Increasingly, film converters security arrangements across on performing activities that will help to avoid accidents. Our internal audits and will be using more advanced polyolefin’s in their formulations our maritime operations, Historically, safety performance was measured through management systems are to fulfill sustainability objectives. The Borstar polymerization especially in the wake of piracy central to our approach to lagging indicators, for example recordable incident rate process enables Borouge to combine the product properties of attacks that have become product stewardship. Many various conventional PEs into one unique product family the biggest threat to the (RIR) or lost work case rate were reported. The new of our products are required shipping industry in recent scorecard uses a balanced blend of lagging and leading to have specific material The industrial packaging segment, especially the Heavy Duty years. To ensure their safety in indicators which address the ADNOC HSEMS requirements safety data sheet (MSDS). Shipping Sacks (HDSS) segment, is a major user of PE film international waters, ADNATCO on contractors. Six parameters were selected for the new These MSDSs outline the packaging, considering the number of petrochemical plants existing today and the quantity of chemical products that they & NGSCO’s vessels are fitted scorecard program: relevant health, safety and with the latest and most rigid environmental aspects of our produce. HDSS used to be 180-200 microns about 10-15 years non-lethal security measures. • Management commitment and staffing for safety products and are available to ago, and its thickness has gradually been reduced to around The unique security designs • HSE Management System implementation and our customers and to those 140-160 microns currently, mainly due to a combination of cost that have been adopted by understanding who transport our products. saving effort as well as introduction of advanced polymer resin 20 their vessels have contributed 21 • Transportation safety with superior mechanical properties. Borouge has worked to towards establishing As our primary activities are in reduce the thickness of its own HDSS. Driving this effort mainly • HSE Critical Equipment and Systems international maritime security the extraction and processing through the Product Handling Network, and supported by our standards, such as the Best • Action closeout stages of a product’s life cycle, Procurement function and packaging suppliers, the solution Management Practice Guide • Incident and Near Misses the majority of the life cycles is now ready to reduce our HDSS thickness from 150 to 130 No. 4 (BMP-4) For Protection of our products occur after microns. By using a combination of FB2230 & FB1350 in the film against Somalia Based Piracy. The HSE scorecard program registered improvement in all they have left our control. For formulation, the down-gauged Borouge HDSS is still more than key parameters. In addition, some specific performance our petrochemical products, able to meet our stringent specifications. Using a base capacity where a closer interaction enhancements have been identified such as: timely of 4.5 mil MT of resin (equivalent to 150 million HDSS per year), with consumers takes place, resolution of HSE issues, improvement in lessons learned this initiative is expected to generate material savings of 2,175 Managing our contractors the health and safety impacts sharing, etc. These efforts played a key role in accomplishing metric tonnes per year for Borouge itself. are assessed for improvement A considerable part of ADNOC’s an ‘accident free’ year for several of Al Hosn Gas contractors. Group-wide operations depends during the marketing on contractors to carry out and promotion; storage; a variety of works. We strive distribution and supply; and Group Companies (namely Marketing to maintain a stable and fair use and disposal stages as well ADNOC DISTRIBUTION, communications Borouge and FERTIL) as our business relationship with our as during their manufacturing The Group Companies’ success at home and aboard contractors throughout all and production stage. individual marketing is determined to a large extent stages of our projects, from departments strictly adhere by the reputation of our procurement to delivery. Both our refined and to the provisions of signed products and our commitment unrefined products undergo customer agreements and to towards customer service The majority of our contractors’ comprehensive quality applicable laws and standards excellence. works are carried out in and assurance and quality control related to advertising, around areas of relatively high testing before entering promotion and sponsorship. risk. Particularly for large and the marketplace, to ensure Our Group Companies’ On a voluntary basis, ADNOC long-term contracts, there is international and customer approach towards customer DISTRIBUTION makes a need for early identification specifications are strictly met. satisfaction is complemented reference to the British Code of clear and common HSE with other methods such of Advertising, objectives and it is imperative as 24/7 call centres, regular customer visits, product trials to include these in the contract. Sales Promotion and and technical follow-ups where As a general rule, all contractors Customer outreach Direct Marketing that has possible. working for ADNOC Group and satisfaction been developed by the Companies will be subject to Customer satisfaction is UK Advertising Standards ADNOC HSE Policy, HSE Codes critical to our outward-facing Authority (ASA).
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Collaboration and Business continuity Emergency response and crisis management mutual aid management Our operations are required to have systems in place to ADNOC Tiered The potential threat of ADNOC plays a central role in identify, manage and effectively respond to incidents, Emergency Response emergencies does not only exist developing the UAE’s economy emergencies and crises. Collectively, these requirements Structure within ADNOC’s operations, and in stabilising international are designed to enable our operations to safely return to but also exists as a result of oil trade. Interruptions in the industrial, commercial and ADNOC’s supplies could have full function as soon as possible. political activities surrounding adverse impact on oil trade in ADNOC’s areas of operation. international markets. ADNOC’s Corporate Crisis Resources and capabilities Zirku Island, which has been international exchange Team therefore works closely With governmental direction, strategically selected to ensure programmes in 2013 to share with the UAE National Crisis ADNOC developed a Businesses Our corporate teams are maximum coverage across our knowledge with international Tier 1 & Emergency Management Continuity Management Policy strategically established across offshore operations. professionals. Authority (NCEMA), the Abu and is revising its business the Abu Dhabi Emirate, with Dhabi Maritime Security Council continuity plans in alignment two major oil spill response Handled by Considering the high level of on-site resources and the UAE Armed Forces. with the UAE Business centres (OSRCs) located Continuity Management at Mussafah and Ruwais, integrated activities performed across ADNOC’s offshore Tiered emergency Furthermore, ADNOC is a Standard 7000:2015 to insure a response outpost at Al- founding member of the that our operations will continue Dabbiya, and a response vessel operating companies, ADNOC response structure also has an Offshore Mass Regional Clean Sea Organization to fulfil our commitments anchored between Zirku Island Crisis management is (RECSO), a leading non-profit towards local, regional and and Das Island for quick initial Evacuation Plan (OMEP) in dominated by a three-tier place to improve preparedness environmental organization international customers. response. response structure where high established by major oil and in the unlikely occurrence level leadership commitment, shipping companies in the GCC The plans are built with due of events that require mass constant communication, The sensitive nature of Abu region that functions on the consideration of critical business evacuations. mutual aid assistance, and Dhabi’s marine environment concept of ‘mutual aid’. units and processes, to ensure clear accountabilities on demands that ADNOC’s Crisis Tier 2 their uninterrupted operation in The competency of our staff preparedness and response & Emergency Management Jointly with the 13 members, the event of various scenarios is critical to our success in are key. The philosophy of the Teams be on stand-by ADNOC contributes towards the that might affect our business anticipating and effectively tiered response structure is Requires mutual and ready to mobilize at largest ready reserves of oil spill continuity. Such scenarios are responding to crisis situations. that every facility will provide aid assistance all times. As the size and response resources in the world, actively prepared for by our Our in-house training an immediate response 22 complexity of our operations and providing direct access participation in regular exercises 23 programmes are accredited capability directly supported grow (particularly with the to world-class services and jointly with the National Crisis by the UK’s Nautical Institute by a corporate response expansions witnessed across expertise that can be mobilized & Emergency Management to meet the requirements of organisation and by mutual the ADNOC Group Companies’ quickly for member companies Authority (NCEMA). the International Maritime aid. The final tier of response island structures and offshore to contain and clean up a major Organization (IMO). With is attained by promoting and installations), so must our oil spill. speed of response in the oversight and support from expanding relationships with event of emergency. ADNOC the National Emergency Crisis the regional and international is therefore in the process of and Disasters Management oil industry and oil spill constructing a third OSRC on Authority (NCEMA), our response providers. Tier 3 personnel undertook several Requires national or international assistance Abu Dhabi Shoreline Survey The ADNOC Crisis and Emergency Division initiated Phase I of the ‘Abu Dhabi Shoreline Survey Project’ in 2014, where a team of 15 trained specialists walked the shoreline of the emirate performing mapping for different shorelines types and identifying key response strategies as part of contingency planning objectives. Increasing severity of incident Phase 2 is expected to take place in 2015 in cooperation with the Japan Cooperation Centre, Petroleum (JCCP), where critical areas will be identified and their surface current measured to further enhance the information available.
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Keeping our people and operations safe Driven by our leadership, safety is a fundamental value and personal responsibility for all ADNOC employees and our contractors. We strive to create and maintain an injury-free work environment and to apply robust operating and maintenance practices across our facilities and work places.
Managing our and taking responsibility for occupational managing these conditions safety risks safely. The risks inherent to our operations include a number An essential principle of of hazards that, although many our employee engagement may have a low probability of principle is empowering our occurrence, can have extremely employees to intercede or serious consequences. Hazard refrain from a job or task identification, risk assessment based on their view that the and implementation of risk work is considered to pose a control measures based on threat to HSE, without threat the appropriate risk control of reprisal. This principle is hierarchy, are central to our stated explicitly in ADNOC’s management of occupational HSE Policy. safety. These requirements are 24 25 also integral to our Group-wide HSE Management System and ADNOC Codes of Practice Road safety which all our operations are Incidents involving motor required to have in place and vehicles remain one of the implement. most significant causes of injury and fatality in the oil and Engaging our employees and gas industry. As part of the contractors is an essential second revision to the ADNOC feature of our occupational Codes of Practice Manual, a Highlights safety management approach. new Code of Practice was In addition to ensuring their established in 2013 to provide PEOPLE competence of performing our Group-wide operations with a consistent framework • >60,000 employees Having our people return home safe and well at the end of every work day and enabling them tasks and activities in a safe for assessing and controlling across ADNOC to end their working life fit and healthy are central to everything we do. Regardless of where manner, people who carry the health and safety risks operations our people are located or the type of work they undertake, we strive to create a working out HSE-critical activities associated with road transport environment that is free from occupational illness or injury. or are engaged with HSE- critical installations are in a activities. This Code of Practice • 581 million man unique position to identify the was established to supplement hours recorded This is reflected in the processes and controls we have in place throughout our organisation. strengths and weaknesses of an existing Code of Practice Our principles and requirements for safe, reliable and compliant operations are part of our • 2.3 million man existing safety regimes, and that mostly covered the HSEMS against which all ADNOC operations are required to align with. Our operations are also hours of training hence assist in identifying and aspects of road transport required to have systems in place to identify, manage and effectively respond to foreseeable delivered at a total implementing opportunities for operations, including risk crises and emergencies. Collectively, these requirements are designed to enable our operations spend of over AED improvement. assessments, driver training to safely return to full function as soon as possible. 447 million and management systems. ADNOC requires all operations • AED 17 billion in to have a system in place that employee wages encourages employees and and benefits contractors, where relevant, to participate in identifying and reporting unsafe conditions
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Managing occupational safety
Employee Competency & Engagement LTIF – Exposure Hours FAR – Exposure Hours
Implementation Incident Hazard Risk Monitoring of Risk Control Reporting & 0.2 2,500 Identification Assessment and Review 2.5 25 Measures Follow-up
2,000 2.0 20
1,500 1.5 15 0.1 Our safety performance 1,000 FAR Taking fireground LTIF 1 10 Our expectation for safety outcomes and for definitions safety to a new Fatalities dimension that classify incidents is that they are applied uniformly 500 0.5 5
across our operations. We adopt the International Association hours (million hours) Exposure of Oil and Gas Producers (IOGP) guidelines for the recording 0 0 0 0 and reporting of occupational injuries and illnesses. GASCO 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Rapid Deployment and Telemetry Systems are LTIF Exposure hours FAR Fatalities designed to enhance crew safety during operational activities involving Breathing Fatality (by activity) Fatality (by cause) Apparatus (BA). Rapid
deployment allows for the Drilling, workover, well services Fall from height immediate deployment (1 incident) (4 incidents) of resources if crew sizes are restricted and quick Construction, commissioning, Caught in, under or intervention is required. If decommissioning (1 incident) between (2 incidents) 26 resources are available or Maintenance, inspection, Explosion or burns 27 the incident is protracted, testing (4 incidents) (1 incident) Telemetry Entry Control can be used. The system Transport: land (2 incidents) Struck by (1 incident) transmits electronic data between each BA set and the Entry Control Officer (ECO), which allows for greater command and control, and improved health and Process safety and asset integrity safety of the deployed personnel. Not only does At ADNOC, we manage and safeguard the integrity Our 2014 lost time injury activities and construction this project allow for the of our facilities, operating systems and processes frequency (LTIF) of 0.11 activities. Our belief that work- ECO to monitor real time by applying industry-wide and international safety air consumption of the injuries per million hours related deaths and serious wearer(s), time-to-whistle standards and procedures throughout our facility Preventing loss worked is lower than the injuries and illnesses are and remaining cylinder and asset design, construction, start-up activities and industry benchmark of 0.36 preventable will motivate us pressure, but it also modifications. of containment (IOGP average). While we to reinforce our emphasis on allows users themselves continue to see year-on-year safety training about hazards to activate distress of materials is a improvement, we recognise that on the job and the need for warnings, which would primary goal of LTIF is principally an indicator continual vigilance across our be transmitted to the In 2014, a total of 14 tier 1 and events, detailed analysis of in highlighting broad personal operations. ECO. The telemetry entry 22 tier 2 process safety events the consequences of failure industrial safety injury trends, and we recognise control board also allows were recorded across our events, and the analysis of the entry control officer management that lower injury rates alone will Our fatal accident rate (FAR) operations. process risks accounting for to activate each wearers not prevent fatalities. all the safeguards can help programs. – the number of fatalities per emergency distress alarm, A thorough understanding of significantly in preventing 100 million hours worked – for example if the entry Four fatalities occured during decreased in 2014 compared control officer notices the hazards, identification of and mitigating loss of maintenance, inspection to 2013, where we recorded an a structure becoming a complete range of failure containment incidents. and testing activities; two FAR of 1.38 in 2014 compared to unsafe he will be able to fatalities occured during land 1.55 in 2013, and is higher than notify all SCBA personnel transportation; and one fatality the industry benchmark of 1.03 to evacuate the area. occured during each of drilling (IOGP average).
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Keeping our people and operations safe The acute and immediate nature of serious accidents makes them an obvious health and safety focus; however Our priority the life-altering disabilities that can result from chronic exposure to health risks are equally important. is to control occupational exposures Managing Health surveillance at their source. occupational health As part of an effective risks and exposures occupational health risk Numerous agents pose a management programme, hazard to our workers’ health health surveillance is required and well-being, regardless of where the OHRA process has whether they are in an office, identified personnel exposed to Elimination of a workshop or in a process extreme, high or medium risks plant. These agents are broadly to health. chemical exposure classified into five categories: hazard Human rights physical, chemical, biological, ADNOC’s health surveillance is Whilst employee labour ergonomic and psychosocial a two-tier programme that is associations and collective Labour welfare and wellbeing (work-related stress). built on medical examinations FERTIL bargaining agreements are not ADNOC acknowledges the contribution that foreign and screening (conducted at permitted in the UAE under workers make to our operations and is committed to Our operations are required pre-employment stage and Hydrazine, a chemical Federal Law, the International protecting their rights and empowering them to fully to identify and establish an then regularly throughout oxygen scavenger, was Labour Organisation (ILO) benefit from their residency in the UAE over the duration inventory of all current or employment history); and conventionally used by principle of ‘Decent Work’ of their work on our projects. anticipated agents that are biological monitoring and FERTIL to reduce the is integrated in all aspects of our relationships with our potentially hazardous to health, health surveillance tests. O content in boiler feed ADNOC has a Labour Welfare Unit that was established and assess the health risk Depending on the type of 2 employees, and extends to our water systems, thereby to oversee the welfare and labour conditions of associated with exposure to exposure, the latter may involve contractor workforce as well. suppliers, contractors and workers employed by 28 reducing the possibility of 29 these agents. This is followed by biochemical analysis and more contractors on ADNOC projects. The Unit, with pitting corrosion. the implementation of effective sophisticated investigative tools ADNOC has a zero tolerance representation from ADNOC welfare specialists and control measures to eliminate or such as audiometric testing, Following an international stance towards human rights from our operating companies, oversees various welfare abuses or claims of abuse, and minimise the health risks to as X-ray, MRI imagery etc. The trend to restrict the use of aspects including wages and payment, annual leave, and low as reasonable practicable medical data obtained through significant measures are taken Hydrazine due to its health labour living conditions, amongst others. (ALARP), and a regular review these surveillance measures to safeguard human rights hazards, FERTIL initiated of the effectiveness of these provides a powerful tool for across our operations and The Labour Welfare Unit refers to the UAE Federal a study to identify an control measures. This process, assessing the exposure risks sphere of influence. Suspected Labour Law, international best practice, and ADNOC alternative compound with known as Occupational Health present in the workplace and cases of human rights violations Codes of Practice as reference to define decent and fair Risk Assessment (OHRA), for evaluating the adequacy of similar performance. are thoroughly investigated by practice as well as violations of workers’ rights. These is required for all ADNOC’s control measures in minimising ADNOC; entities found not to be principles are clearly defined in ADNOC’s contractual new and existing projects and those risks. The replacement product, compliant with ADNOC’s policy agreements and their practice is evaluated prior to the operations. CORTOL OS5601, was of promoting and upholding decision making process of whether or not to proceed tested successfully respect for human rights are with an investment. Our screening criteria and and found to pose no blacklisted from providing occupational exposure handling hazards and no services to ADNOC and our Our health performance Group Companies. limits are aligned with local environmental damage regulatory limits or are set by In 2014, ADNOC initiated a in case of chemical ADNOC wherever regulatory Group-wide internal audit ADNOC does not hire anyone spillage. Furthermore, limits are absent or found not of occupational health under the legal working age of to provide sufficient protection performance reporting the performance of this 18. Forced, compulsory and child against the hazardous agents practices to standardize replacement product labour are strictly forbidden inherent to our operations. reporting across our projects outperforms Hydrazine under the UAE Federal Labour and operations, including Our priority is to control at O2 scavenging in lower Law No. 8 of 1980, and ADNOC occupational exposures at their our contractor workforce. temperatures. takes a firm stance on ensuring source; in situations where The findings of this audit are no violations of this kind take we cannot control the source underway and will be disclosed place amongst our workforce. by engineering methods or in our forthcoming 2015 report. In 2014 , no ADNOC operations otherwise, a range of measures were identified as having risk are employed including the for incidents of child, forced or provision of personal protective compulsorily labour. equipment (PPE).
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Employee hire and turnover Developing our people Rate of employee Rate of employee Throughout 2014, our workforce comprised over 60,000 Category New drilling hire (%) turnover(%) employees and over 97,500 contractors. Employing and training centre developing people with exceptional skills and who share Gender Male 87 94 our values is critical to our long-term success. inaugurated in the Western Region Female 13 6 Age Under 30 years old 51 27 30-50 years old 46 52 Diversity and equal Training and development NDC Over 50 years old 3 21 opportunity We develop the skills and Drilling is the backbone ADNOC has a clear employment capabilities of our workforce of ADNOC’s operations. Position Executive and Senior - 1 structure of ‘job grades’ through regular performance To support the expansion Management whereby employees are reviews combined with of ADNOC’s onshore Middle Management 13 16 assigned specific grades on training and development and offshore projects, Staff 87 83 the basis of their entry level programs. In 2014, 83 per cent NDC established a new experience and qualifications. of employees participated in Drilling Training Centre at a formal performance review Bu Hasa (in the Western Our employees come from process. This process includes Region). around the world, primarily a review of an employee’s Asia, Europe and other Arab development plan, which may and leadership skills and Awards programme, which plays Equipped with six training Empowering our countries. Equal opportunity include participation in training female workforce helping them overcome the an influential role in shaping is ensured for ADNOC’s programs to maximise their halls, four laboratories, challenges. the future of the oil and gas employees with no difference performance and potential. and additional Across our 60,000 employees, industry, both regionally and women play a critical applied on the basis of gender, facilities capable of In 2014, women represented internationally, by recognising role in our organisation’s age or origin. For example, Training programmes and accommodating more 10.1% of our employee best practice and providing development and bring high job grades and basic salaries, development opportunities are than 300 trainees, this workforce. a platform for achievers to value to traditionally male- including minimum amount designed and implemented at new drilling centre aims share their knowledge and dominated workplaces. paid, are the same for male and the operation level to support to provide specialised Demonstrating leadership experience with their peers. ADNOC is committed to 30 female employees. ADNOC is each job requirement. In 2014, in female workforce 31 technical training to creating an environment that also committed to providing the ADNOC Companies spent empowerment, ADCO received ADCO is the first energy NDC’s employees and supports women as they an environment that enables over AED 447 million to deliver the award for ‘Empowering company and the third reinforce their continued navigate their careers in the all employees to pursue their in excess of 2.3 million hours of Women in the Oil and Gas company in the public sector development, thereby oil industry and participate careers free from any form of employee training. Industry’ in the annual Abu to introduce a child nursery strengthening the in leadership roles, by discrimination. Dhabi International Petroleum on site. strengthening their technical capabilities of the national Energy Conference (ADIPEC) workforce and qualifying Employee diversity by age Breakdown by nationality young national talents to resume key positions
<30 years old - 14% Emirati National - 34% in the technical and 30-50 years - 33% Other GCC Nationals - 1% managerial professions in >50 years - 53% Non GCC MENA - 12% the company. Rest of Africa - 2% Rest of Asia - 48% NDC is proud that N&S America, Europe today, its rigs are being and Australia - 3% operated by competent UAE nationals from drillers to rig managers, ADNOC also has a three to four Assurance Management System in land rigs, offshore rigs year core training programme (CAMS) programme. and island rigs. specially formulated for promising new graduates (known Some of the ADNOC Companies as ‘entry point’ employees) who also offer programmes to assist are keen to serve the UAE’s with pre-retirement planning and national oil and gas economy. budgeting. Furthermore, ADNOC In 2014, there were 3,840 entry goes beyond legal requirements point employees across the to support individuals in ADNOC Group Companies transition. participating in this programme, known as the Competence
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae wage is highly competitive For UAE nationals of all pay with market rates in the oil and grades, ADNOC contributes gas sector. ADNOC provides to a pension programme housing for the majority of that is managed by the Abu employees either through direct Dhabi Retirement Pensions provision or a stipend. and Benefits Fund (ADRPBF), an entity of the Abu Dhabi ADNOC recently revised its Government. Expatriate benefits package across all employees receive the employee positions in the company’s end of service company, to include additional benefits, which equate to one provisions aimed at better month of salary for every year serving our employees’ needs worked, increasing to 1.5 months and lifestyle requirements. of salary for every year worked after three years of service.
32 33
Non-retaliation Working in with a suitable work-life balance and grievance remote locations at these locations (see page 46 for more information on ADNOC recently A combination of measures The remote nature of many of ADNOC’s housing and lifestyle revised its benefits is applied to ensure our our operations often means that provisions for workers and their employees’ job satisfaction and the skilled workforce needed families). package across to ensure their job concerns to advance our safety and all employee are suitably addressed. production requirements is not These include open forums, available at these locations. positions in the workshops, employee This requires us to widen our company, to Benefit plan satisfaction surveys and regular recruitment options and employ include additional performance appraisals. people who choose to reside obligations outside the community and ADNOC’s entry-level provisions aimed Confidential employee grievance work in remote locations. In compensation package is at better serving is embedded in ADNOC’s order to attract the qualified highly competitive. Standard our employees’ HR Policy, which extends to workers we need in today’s ADNOC benefits for employees our Group Companies and competitive labour market, include life insurance, health needs and lifestyle Independent Operators, and ADNOC places paramount care, disability coverage and requirements. ensures a fair and impartial importance on being able leave policies (e.g. annual leave, approach. ADNOC does not to offer accommodation, maternity leave, sick leave, currently have a policy to compensatory Remote Area and Hajj travel), educational cover collective bargaining Allowance (RRA) and lifestyle assistance and retirement agreements. choices that provide our people provisions. Our minimum
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Managing climate change risks Working in an energy-intensive industry, we recognise that major challenges and opportunities lie ahead in addressing climate change risks, particularly in the context of rising energy demand and global economic growth.
Managing GHG share approach and using the emissions across our Intergovernmental Panel for operations Climate Change (IPCC) 100- year Global Warming Potentials ADNOC’s strategy to manage (GWP). climate change risks is focussed on improving greenhouse gas (GHG) management by increasing our energy efficiency and implementing Flaring proven emission-reducing In 2014, flaring across our technologies in the short term, operations averaged 69.9 million and promoting renewable standard cubic feet per day energy and innovation in our (MMSCFD), an increase of 13.5% technologies in the long-term. from 2013 levels (where 61.6 MMSCFD was recorded). The The majority of our GHG increase is largely accounted emissions come from fuel for by our expanding gas combustion, flaring and processing and petrochemical venting, which occur at various production operations. stages of our hydrocarbon value chain. In 2014, our 34 operating companies invested 35 approximately AED 125 million Venting towards improving energy Venting is sometimes required efficiency, reducing flaring and and is important for the safe decreasing GHG emissions; this operation of our well sites and corresponds to approximately operations. In 2014, the total 20% of our total environmental volume of vented hydrocarbon expenditure in 2014. in 2014 amounted to 471,732m3, a decrease of 48.7% from In 2014, the GHG emissions 2013 levels. The total amount across our operations amounted of continuously vented to 24.8 million tonnes CO2 Eq, hydrocarbon in 2014 amounted Highlights ENVIRONMENT derived based on the equity to 457,600 m3. • Over 21.6 million GJ We operate our facilities with integrity and with the goal of preventing environmental incidents. energy savings The principle of Pollution Prevention and Control (PPC) is central to how we operate, and we GHG emissions (5 year trend)* • AED 637 million concentrate our efforts on taking a proactive approach towards environmental protection 25 rather than one that focuses on remedial efforts alone. At the same time, we ensure to have the in environmental e ability to respond quickly and effectively when incidents do occur. 2 20 expenditure 15 • 2 Clean Our operations are required to assess the environmental risks and impacts of new projects and 10 Development substantially altered existing projects, and to ensue our risks are managed to an acceptable Mechanism (CDM) level and do not result in unacceptable consequences to our people, environment, assets and 5 CO million tonnes projects registered our reputation. This is supplemented with continuous environmental monitoring during the 0 with the UNFCCC to development and active phases of our projects and through to decommissioning. Upstream** Gas Refining Petrochemicals Distribution ADNOC date Processing (domestic and Total international) • 18% Reduction 2010 2011 2012 2013 2014 in NOx emissions compared to 2013 *Limited assurance was performed for the GHG emissions reported in 2014 only (refer to page 72 for External Assurance Statement); the 5 year trend may therefore not be representative of ADNOC’s GHG levels emissions over this period. ** GHG emissions from ADNOC’s upstream operations were revised for the period 2010 - 2014 to exclude emissions from our independent operators. The values will therefore differ from those disclosed in previous ADNOC Sustainability Reports.
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Flaring (5 year trend) Improving product Engaging in climate performance change policies CDM Registration of 100 ADNOC develops products that The issues associated with Shah Flare Gas Al Dhaffa Energy reduce energy use and emissions climate change are a challenge Efficiency Program Recovery Project throughout our customers’ for governments and industries activities and supply chains. worldwide, and public policy will 75 These include Green Diesel – a play a key role in reducing GHG ADCO new fuel developed by TAKREER emissions in the future. ADNATCO & NGSCO which contains a maximum Petrochemicals As part of continuing efforts ADNATCO & NGSCO to improve the company’s of 10 parts per million (ppm) ADNOC is taking a proactive 50 Refining initiated a three-phase environmental performance, sulphur content and introduced approach toward adopting energy efficiency Gas Processing ADCO established a flare gas to the local market in 2014; and globally recognised GHG program in 2012 across Upstream recovery system at their Shah Natural Gas for Vehicles (NGV) management tools and Field that utilises spiking gas – a new fuel that was introduced strategies, starting with our their shipping fleet. The 25 compressors to avoid flaring by ADNOC DISTRIUTION in growing portfolio of Clean company engaged a third per day cubic feet Million standard approximately 5.1 million 2010 and delivers significant Development Mechanism (CDM) party specialized in energy standard cubic feet per day reductions in emissions when projects. ADNOC has two active efficiency management (MMSCFD) of associated compared to petrol-fuelled cars CDM projects – implemented with the aim of identifying 0 gas to the atmosphere. The (20-25% for CO2, 50-80% for CO by ADCO and GASCO – and current gaps, setting a 2010 2011 2012 2013 2014 associated gas will be spiked and 25-60% for NOx). an addition one by ZADCO base line and implementing into the main oil line at Asab which is currently undergoing recommendations and until the new plant for the Al industry best practices. Energy efficiency agenda and plays a leading role Hosn Shah Gas Development Since NGV was first introduced accreditation. We aim to build Project is commissioned. in 2010, a total of 3,428 vehicles our portfolio of CDM projects, • Phase one – Identify Across ADNOC’s operations, towards enabling cutting-edge have been converted to run focussing our efforts on quick wins we pursue a variety of projects technologies, new innovations The spiking gas project was on this new product, with 480 projects that provide long-term • Phase two- Establish to improve our energy and solutions to climate change registered under the Clean new vehicles added to the NGV environmental benefits and cost- roles & responsibilities efficiency and reduce energy challenges to be introduced and Development Mechanism fleet in 2014. There are 9 NGV effective gains. • Phase three- Install consumption; these largely commercially deployed. (CDM) of the United Nations conversion centres in place energy efficiency devices focus on optimising the way ADNOC continuously seeks Framework Convention on across Abu Dhabi, Al Ain and ADNOC also engages with we operate our facilities and Climate Change (UNFCCC) in At the completion of phase opportunities for research Sharjah, with plans in place to policy makers on climate change on replacing on-site power July 2013, and will generate one, the improvement collaborations with our partners expand the network in the future. policies at a local and federal generation with higher approximately 110,000 Carbon achieved since the 36 in the oil and gas industry that level, including environmental 37 efficiency imports from the Emission Reduction (CER) start of the project was benefit our operations and Our innovative products extend regulators and the ministries of national grid. A total of 21.6 units (one carbon credit translated to a saving in research institutions (see page to our petrochemicals, whereby environment and water, energy million GJ is reported to have per one tonne reduction of the fuel consumption of 52 for more information on CO equivalent). In addition our Group Company Borouge is and foreign affairs, and aim to been saved across our operating 2 actively engaged in researching make a meaningful contribution 3,788 metric tonnes thus companies in 2014. ADNOC’s research institutions). to eliminating flaring and GHG emissions, the project and developing innovative and towards the collective efforts reducing CO2 emission by also delivers strategic social high performance polypropylene involved in setting domestic 11,797 metric tonnes that We also developed a new Going forward, the challenge will be to make CCUS projects and economic benefits for (PP)-based products for the initiatives and future GHG amount to USD 2.5 million. Code of Practice in 2013 associated industries and the infrastructure automotive management targets. both commercially viable and At the completion for implementing Energy UAE overall. These include and advanced packaging attractive to invest in. To this of phase two, the Management Systems, targeting generating employment industries (see page 21 for more ADNOC is also an active envoy end, the joint venture between improvement achieved a long-term improvement in opportunities for skilled and information on substitute with to the UAE’s delegation at ADNOC and Masdar will create since the start of the our energy efficiency profile. unskilled workers (up to Borouge’s products). major international climate a benchmark for the technical project was translated Our operating companies 6,000 people were involved change forums and negotiations, and commercial delivery of CO2. in the construction phase to a saving in the fuel are also integrating more including the Conference of of the project); freeing up consumption of 7,306 renewable energy options into Parties (COP) meetings held their operations. Over AED 18.5 Once CO2 EOR is proved to be natural gas for downstream metric tonnes thus feasible in Abu Dhabi fields, the industries to assist meeting under the United Nations million has been invested into reducing CO2 emission by domestic gas requirements; Framework Convention on this transition process in 2014. potential CO2 demand from 21,915 metric tonnes that and contributing towards Climate Change (UNFCCC). ADNOC’s operations may rise amount to USD 4.6 million capacity building in terms In 2014, energy used across our on the back of expanding oil of technical knowledge The project is currently operating companies totalled production in the future, and Abu Dhabi will thus create a and project management in phase three, whereby 532.5 million GJ from direct skills. At a capital outlay Carbon capture, usage and storage commercial playing field that many devices are in energy sources (of which of approximately AED 315 ADNOC is seeking to utilise CO2-enhanced oil recovery (CO2 the installation process, approximately 31,284 GJ was will enable other companies, million, the spiking gas EOR) as part of a joint venture with Abu Dhabi Future Energy including ship performance generated from renewable project developers and investors project is a clean and robust Company (Masdar) through a pioneering carbon capture, monitoring system, Coriolis sources), and 17.5 million GJ to enter the market on a technology that aims to usage and storage (CCUS) project. Located in Abu Dhabi, the mass fuel flow meters, from indirect energy sources. commercial basis. encourage and promote the deployment of similar capital of the United Arab Emirates, the project will compress Torque meters and Kwh and transport CO2 captured from the Emirates Steel Industries meters. The need to invest in new areas systems across ADNOC’s operations and in other (ESI) to be used for enhanced oil recovery in ADCO’s onshore of research and development industries of the UAE. fields. Due for completion by 2016, the project will sequester (R&D) in the oil and gas up to 800,000 tonnes of CO2 annually. industry is high on ADNOC’s
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Managing our environmental performance Our commitment to operating in an environmentally responsible manner is anchored in our HSE Policy and ADNOC Codes of Practice Manual, which foster appropriate operating practices and training, and require our facilities to be designed, operated and managed with the goal of preventing environmental incidents. Take off your SOx and NOx Air emission monitoring NOx, SO2 and VOC ADNOC established an Air emissions knockout Quality Monitoring System In 2014, the total quantity Takreer has adopted a (AQMS) in 2007. The system of nitrogen oxide (NOx), SCR (Selective Catalytic started with eight stations (six sulphur dioxide (SO2) and Reduction) DeNO fixed and two mobile). x VOC emissions from ADNOC’s process – the most ODS emissions (tonnes) CFC-II Equivalent (tonnes) operations amounted to 56.7 efficient method in the Halons 0.8 7.9 An additional five stations kilo metric tonnes, 276.2 kilo market - to comply with (four fixed and one mobile) metric tonnes and 68.9 kilo CFCs 2.3 0.3 are expected to be fully ADNOC Code of Practice metric tonnes respectively. 3 operational by the end of 2015. on NOx (350mg/Nm ) HCFCs 19.5 1.0 All thirteen stations will then emissions. Total 22.6 9.2 be integrated to one network that can broadcast data on the This process, with web in real-time basis. accompanying Water and wastewater operations; this corresponds to the total water withdrawn is technology, is credited management 6.8% of our total internal water extracted from the sea and used consumption. as cooling water. with reducing NOx The sustainability of our content from 170mg/ operations relies on our ability Nm3 of flue gas to 50 to obtain the appropriate quality Water withdrawal Most of this water is then mg/Nm3. The active and quantity of water and to In 2014, approximately 4.7 discharged back to the sea use this resource responsibly. In billion cubic metres of water after undergoing treatment, 38 product in this process is 39 2014, approximately 10.1 million was extracted to support our as required, to meet ADNOC ammonia, which is toxic discharge limits. VOCs to handle, as a feed. cubic metres of water was operations. Over 99% of recycled and reused across our 2010 SO2 Hence, Ruwais Refinery NOX West has invested in Major streams Volume extracted (million m3) a hydrolyser skid to 2011 generate ammonia from Surface water 4,689 urea solution, in a safe, Ground water 3.8 contained environment. 2012 In doing so, RR West has Municipal water 23.2 further reduced the NOx Total 4,716 content of its already NOx 2013 compliant flue gas stack. Across our operations, there resources, water supply wells are the Marawah Marine Protected is one sensitive water body drilled in the brackish zone of Area, located 100 km west of which may be affected by the the reservoir where the salinity Abu Dhabi, which lies within 2014 withdrawal of water. This is exceeds 15,000 ppm. ADOC’s concession area. The the Liwa groundwater aquifer Marawah Marine Protected Area 2 0 50 100 150 200 250 (located immediately north of Effluent discharge is approximately 4,255 km in Liwa, and covering a surface size. To minimise their impact, Air emissions (kilo metric tonnes) Across the ADNOC Company area of about 1,800 km2), from ADOC’s wastewater discharges operations, there is one sensitive which ADCO withdraws water are regulated and are in water body that may be to perform their operations in accordance with the discharge Companies operate halon-free. Our operating companies significantly affected by effluent Emissions from ozone the Bu Hasa and Asab fields. limits and criteria stipulated in The halon stock remaining in use are also investing in discharge. This water body is depleting substances To conserve the fresh water the ADNOC Codes of Practice. is approximately 20.3 tonnes. replacing existing In 1997, ADNOC initiated a This is largely accounted for chlorofluorocarbon (CFC) phase-out programme for by ZADCO’s halon stock at and hydrochlorofluorocarbon 3 halons (an ozone layer depleting Major streams Volume discharged (million m ) the Upper Zakum and Zirku (HCFC) units with alternative substance). With the exception crude oil storage tanks, which refrigerants of lower ozone Cooling water 4,631 of ADMA-OPCO and ZADCO, is planned to be phased-out by depleting and global warming who are actively exploring viable Process effluent 29 the first quarter of 2015 under potentials). No halons or CFCs alternatives that are appropriate a new progressive halon phase- are planned for use in any for their complex offshore Sewage water 32 out strategy. future developments and facility operations, all our ADNOC upgrades. Total discharge 4,692
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Produced water Waste management of ADNOC’s hazardous waste, Spill prevention and training materials for our 2014, a total of 38 hydrocarbon ADNOC established the Central operators, emphasizing regular spill incidents were recorded, Produced water across our Our first waste management response Environment Protection Facility performance of tests and drills, of which 37 were to land operations is re-injected into priority is to avoid its When assessing our potential (known as BeAAT) in Ruwais. and allowing us to maintain a surfaces and one was to a deep wells as per ADNOC generation, and then to impacts to water or land, spill Operated by TAKREER, BeAAT relentless focus on safety (see water body. None of the spill requirements. In 2014, this reuse or recycle waste prevention is a top priority. 3 offers a range of treatment page 22 for more information on incidents, including significant amounted to 27.7 million m . wherever possible. ADNOC ADNOC’s HSEMS requirements processes in a single site. ADNOC’s emergency response spill incidents, occurred in Treatment is practiced where also implements a life cycle help prevent spills by building and crisis management environmentally sensitive necessary to reduce oil content approach towards waste in layers of redundancy, approach). locations or protected areas. to permissible levels prior to re- management that facilitates In 2014, a total 54,867 metric outlining procedures for Minor adverse environmental injection. an optimisation of costs, tonnes of hazardous waste the proper inspection and impact was reported for all spill resources and environmental and 122,956 metric tonnes of maintenance of equipment, Hydrocarbon spills incidents. and social benefits. To ensure non-hazardous waste were providing comprehensive Across ADNOC’s operations in the centralised management generated from our operations.
Hazardous and non-hazardous waste treatment To water surfaces Tonnes Total number of spill incidents 1 Total volume released (boe) 0.13 Hazardous Waste1 Quantity Generated 54,867 Total volume recovered (boe) 0 Quantity Treated By BeAAT 46% Recovery rate (%) 0 Directly by Group Company 6.5% To land surfaces Other2 47.5% Total number of spill incidents 37 Non-hazardous Waste1 Quantity Generated 122,956 Total volume released (boe) 3,715a Quantity Treated / Disposed Directly by Group Company 3.8% Total volume recovered (boe) 3,705a 3 Other (unspecified) 96.2% Recovery rate (%) 99.7
1 These quantities exclude drill mud and drill cuttings, which are reported separately below a The volumes released and recovered relate to only 21 out of the 37 incidents; the volumes corresponding to the remaining 16 incidents could not be quantified. 40 2 This largely represents hazardous waste generated from international shipping activities undertaken by ADNATCO & NGSCO and from ADNOC 41 DISTRIBUTION’s nation-wide fuelling operations for which hazardous waste transfer to BeAAT was analysed not cost-effective and alternative waste treatment options were implemented. 3 This represents treatment by municipal / authorised external waste management facilities for which breakdown by treatment option is not available Non-hydrocarbon spills efforts are supplemented with In 2014, there were 13 non- regular inspections to monitor hydrocarbon spill incidents, of and mitigate potential adverse seek to balance the potentially desorption technique in ADCO’s Drilling waste which 12 were chemical spills ecological impacts that may arise conflicting health, safety and Thermal Desorption Plant (for The choice of drilling fluid and one involved leakage of throughout project lifetimes. environmental requirements that ADCO cuttings), and BeAAT to be used in our operations sulphur. The quantity of material each system presents. (for ZADCO’s cuttings). No (water-based drilling fluids, released in 9 of the chemical spill Across ADNOC’s operations oil-based drilling mud and oil-based drilling fluids, or a incidents (chemical spills) could in 2014, there were a total of cuttings are discharged to the combination of both) is made ADCO, ADMA-OPCO and not be quantified; the other three eight operating sites located environment. with due regard of ADNOC’s ZADCO use a combination of chemical spill incidents in which in or adjacent to (within a 50 strategic HSE objective to oil-based muds (OBM) and a total of 8.2 boe was released km radius) protected areas or minimise the use of oil-based water-based muds (WBM) in Al Hosn Gas and our had an average 15% recovery rate areas of high biodiversity value. mud in our operations. Rigorous their fields. OBM is recovered, Independent Operators (ADOC, with minor environmental impact Biodiversity action plans (BAPs) risk assessments of different reconditioned and reused in BUNDUQ and TOTAL ABK) incurred. are in place across all eight drilling fluid systems are future wells. OBM drill cuttings use only water-based muds to operating sites, and no significant undertaken, which consider and are treated by a thermal perform their drilling activities. biodiversity impacts from activities were reported in 2014. Biodiversity Waste drilling fluids and cuttings ADNOC also takes a proactive Our operating companies approach towards enhancing the Tonnes operate in a variety of terrestrial productivity and biodiversity of and marine environments Oil-based Abu Dhabi’s marine environment, Drill mud 32,321 which range from areas of low and has a dedicated team of biodiversity value to those of marine experts whose role is to high ecological sensitivity. Our Drill cuttings 78,427 complement marine protection operating companies take every activities through a number of care to integrate biodiversity Water-based rehabilitation and proliferation Drill mud 283,733 considerations and management projects that involve mangrove plans into their HSEIA process, in and seagrass plantation, and the order to ensure their operating Drill cuttings 188,669 deployment of artificial reef and environments are unharmed fish habitat structures across and capable of delivering their ADNOC’s concession areas. ecological services. These
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Location and Operator Site description Key elements of BMP
Located in ADCO’s South Qusahwira Oil East Bab Asset and Field arewithin the proposed (58 km2) Arabian Oryx Protected Area in Umm Al Zamool.
Arabian Oryx are listed • Desk-top studies to establish species Mender Oil Field as vulnerable species present in ADCO’s concession areas (birds, (62 km2) on the IUCN Red List of mammals, reptiles, plants). Threatened Species. • List of priority species based on IUCN Red Located in ADCO’s List of Threatened Species. ADCO North East Bab Asset, • Biodiversity awareness campaigns 40 kilometres east of (targeted at employees and contractors) the Marawah Biosphere with a special focus on transportation Al Dabbiya Oil Reserve. impacts in biodiversity sensitive areas. Field The environment features • Sign boards in three languages on the (296 km2) Environmental sensitive habitats that rare and endangered species present in expenditure include deserts, sea, Qusahwira. mangroves, salt marshes, We are investing heavily in a BIOjet Abu Dhabi: Flight Path to coral reefs and sabkha. wide range of technologies and environmental practices in an Sustainability Located 40 kilometres effort to minimise and mitigate Jebbel Dhanna east of the Marawah the impacts of our operations. In Terminal Biosphere Reserve. 2014, our operating companies (49 km2) Sensitive habitats include spent approximately AED TAKREER sea grass and coral reefs. 637 million in environmental expenditure, of which 20% was For the first time ever in the UAE, biofuel was produced at Located in the Marawah dedicated towards emission the Takreer Research Center (TRC). This was made possible Marine Protected • Mangrove plantation project implemented abatement and improving our with a collaboration between Etihad Airways, Boeing, Area, which is home to on the island since 1983. energy efficiencies. ADNOC Takreer (TRC), Total, and Masdar Institute of Science and 42 Mubarraz Island important marine and 43 ADOC • Sea grass plantation and coral reef is currently collaborating with 2 coastal ecosystems Technology. (569 km ) preservation projects. federal entities for the purpose including sea grass of initiating a study to determine • Breeding and monitoring of Ospreys. meadows, coral reefs and the financial implications of ‘BIOjet Abu Dhabi’ was announced on January 19, 2014 mangroves. climate change on the current one day after Etihad Airways conducted a demonstration and future operations of the oil flight with a Boeing 777 powered in part by the first UAE- and gas sector in the Emirate of produced bio kerosene from an innovative plant biomass- Abu Dhabi. Located approximately • Visual inspections for flora and fauna. processing technology. The biofuel was partially converted 10 km from the nearest • Avoiding fencing of the interpad lines and from biomass by Total and its partner Amyris. Takreer Shah Gas Field boundary of the transfer lines to maintain gazelle movement undertook the final distillation to produce 600 litres of (700 km2) proposed Arabian Oryx through the area. Environmental expenditure by biofuel which was blended with normal jet fuel in a ratio Protected Area in Umm • Minimise off-road driving. Al Zamool. category of 1/10, adding the UAE to a handful of countries that have • Avoid removal of vegetation; destruction or produced and flown on their own bio kerosene. disturbance to animal burrows or dens; and Al Hosn areas identified as containing desert roses. Gas The BIOjet Initiative is aligned with the Abu Dhabi Economic • Construct laydown areas and temporary Vision 2030, which seeks to develop sustainable energy access roads after due consideration of Located approximately sources to diversify the UAE economy and increase 30 km from the nearest ecological constraints in the vicinity. workforce opportunities for Emiratis. Shah Gas Plant boundary of the • All sites including temporary laydown areas (12 km2) proposed Arabian Oryx and access roads to be reinstated to their Protected Area in Umm original condition on completion of works. Al Zamool.
Waste management - 39% Zirku Island is an • The west coast of Zirku Island was self- important nesting declared by ZADCO as a protected Energy and emissions - 20% ground for Hawksbill exclusion zone. Zirku Island Turtles, which are listed Water and effluent - 20% ZADCO • In partnership with ADNOC trained (8 km2) as critically endangered Biodiversity - 1% volunteers conduct visual assessments species on the IUCN Remediation - 2% Red List of Threatened of the turtles and their nesting grounds, Species. particularly during their spawning season. Other environmental expenditures - 18%
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Engaging our communities ADNOC’s duties and responsibilities in the energy sector are never carried out at the expense of our responsible corporate citizen commitment. We maintain a dynamic and proactive engagement in our society, and are proud of our role towards providing a better future for the citizens of our nation while safeguarding our environment and resources for the generations to come.
Dialogue with our key as Ruwais, for example, where stakeholders several Group Companies operate jointly in the Ruwais Maintaining good relationships Industrial Complex), with our stakeholders is a key component of how we perform our operations, and ADNOC ADNOC is in the preliminary prioritizes stakeholder groups stage of developing a that work for us, including centralised and Group-wide our people and contractors, stakeholder engagement as well as the communities procedure in co-ordination with that live near our operations. our major stakeholder groups. These include the communities The procedure, which will set of Ruwais, Madinat Zayed, the objectives and means Liwa and Shuweihat – which for a proactive stakeholder are collectively located in the engagement approach, aims Western Region of Abu Dhabi to establish dialogue with our 44 45 (also known as Al Gharbia). stakeholders concerning our current, planned and proposed Our operating companies future activities, and enable implement individual the exchange of viewpoints, Highlights practices towards community as well as establish a formal engagement, in recognition of means through which potential the shared impacts that some grievances can be raised and • 3 ADNOC academic of our operations have such adequately addressed. institutes dedicated to providing world- class education and research facilities SOCIETY • 4,285 active scholarships ADNOC has an important role to play in driving the creation of in-country value. We accomplish Location relative to our operations this in several ways that include the transfer of knowledge and technology, investing in • 1,241 graduates education and research, job creation and development of local talent and the local supply chain, 20 km from the Petroleum Madinat Zayed developing critical infrastructure to support our economy’s growth and development, and the 20 km from ADCO’s production facility and Institute establishment of best practices across the oil and gas industry. GASCO’s processing facilities in Bab and Habshan respectively • 69% executive and 15 km senior management We strive to demonstrate our commitment towards being a responsible corporate citizen Liwa through practical actions undertaken in partnership with our stakeholders to ensure that our 15 km from the Shah Gas Field operated by positions occupied Al Hosn Gas operations are aligned with their interests and that we continue to build mutually beneficial by UAE nationals 10 km relationships. Our aim is to create opportunities that positively enhance the lives of people who Ruwais • AED 114 million work for us and live near our operations, as well as the society overall. 10 km from Borouge and Fertil’s petrochemical facilities and TAKREER’s refining operations, in community collectively based in the Ruwais Industrial investments within Complex the Emirate of Abu 4 km Shuweihat Dhabi 4 km from a new sour gas well being operated by ADNOC
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Developing the local economy and infrastructure in the Awareness campaign in Shuweihat ahead of places we work gas drilling activities One of our biggest success As part of ADNOC’s expansion plans to develop gas stories is the transformation reservoirs in order to meet the increased demand for of Ruwais, located 240 gas in the next decade required to support domestic kilometres west of Abu Dhabi economic growth, ADNOC is planning to drill a gas city, from a remote desert site well in the Shuweihat area in cooperation with our to the modern industrial city partners (Wintershall –Middle East and OMV Abu it is today. The Ruwais story Dhabi). The proposed well site is in a remote location, began in 1979, when plans but with a main highway located 1.5 km away, and were laid to transform the nearby residential areas located approximately 4 km remote desert site into the from the well site. self-contained and modern industrial town of today, that is geared towards fulfilling the downstream requirements of key downstream oil and gas facilities including TAKREER’s Ruwais Refinery, GASCO’s NGL fractionation plant, FERTIL’s fertilizer plant, as well as a marine terminal and a sulphur handling terminal.
Industry needs people and so Ruwais has also been at the recreation centers. The emergency department, developed into a model ‘new The complex has all the staffed by highly-skilled SMART Service town’ with a population ancillary services required of medical officers and well- of several thousand. The a modern town, including a trained nurses, is open 24 Stations 46 Ruwais Housing Complex well-maintained road network, hours a day and operates a 47 (RHC), covering an area street lighting in all areas, round-the-clock ambulance of six square kilometers, is and a sewage system which service, not only for ADNOC ADNOC located 10 kilometres away includes a treatment plant for employees and their families from the industrial plants and recycling sewage water for but the whole of the DISTRIBUTION was developed by ADNOC irrigation purposes. Electricity immediate neighborhood. Aligned with the UAE’s as a major contributor to and desalinated water Ambulance crews are on vision for ‘Smart Cities’, the national economy and supplies are provided directly hand, for example, to attend ADNOC Distribution’s represents a series of multi- from the refinery. to road accidents along the SMART Service Stations million-dollar investments by nearby highway between Program will kick start in the company. Tarif and Sila. The RHC clinic, Abu Dhabi in 2016 and belt around the perimeter of Ruwais children, from which is open six days a week then extend to all other RHC was built in two phases covers 140 hectares and nursery through to secondary Providing community and is fully integrated with emirates. The new service between 1979 and 1984. In is planted with more than level, are met by a total of 10 healthcare services Ruwais Hospital, provides a stations will provide world- line with ADNOC’s policy 22,000 trees. To ensure a schools. class facilities that conform Medical care to citizens of comprehensive health-care of ensuring that employees regular supply of plants all to international hygiene, the Ruwais Housing Complex programmed to all residents and their families have the year round, the complex has safety, security, and eco- The schools, private and is provided by ADNOC via of the housing complex. It very best of social and its own nursery to propagate friendly standards. The government, are equipped a modern general hospital, offers a wide range of general welfare facilities, all efforts seeding. stations will offer enhanced with modern classrooms and the Ruwais Hospital, and a practitioner and specialist have been made to make it a designs and integrate other facilities, such as science purpose-built clinic; both of services, including nursing and fully-integrated community. Although families who live in innovative technologies laboratories and libraries. RHC which are administered by child welfare, immunization The complex has over 7,000 RHC are some 250 kilometers such as radiofrequency has two recreation centers, ADNOC’s Medical Services and vaccination, school health, residential units, ranging from away from Abu Dhabi, a wide identification (RFID)-based one exclusively for women. Division. Ruwais Hospital dental and physiotherapy one-bedroom apartments to range of consumer goods authorization and payment, The other is open to all and provides the full range of services. four-bedroom, double-story have been made available. The near field communication facilities include a swimming general and emergency ‘executive’ villas. All have complex has three commercial (NFC) readiness, as well pool, gymnasium, theatre, medical services, including modern furnishing and fittings centers with more than 40 as B2B/ B2C e-commerce bowling alley, general activity cardiology, maternity, and are pleasantly set amidst shops and two supermarkets platforms – all designed halls, tennis courts, library, pediatrics, dentistry and landscaped grounds. selling everything from for the comfort and restaurants and cafeterias. ophthalmology, on both foodstuffs to electrical goods, convenience of our Cultural events, often involving an out-patient and in- RHC has a number of household items and fashion- customers and partners. troupes and performers from patient basis. recreation parks and a green wear. The educational needs overseas, are staged regularly
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Investing in our youth Young ADIPEC ADNOC, together with the wider energy sector, provides Program fundamental support in deepening and broadening the domestic industrial base, and driving the country’s broader socio-economic development. Our projects ADNOC help create jobs and develop new skill sets among the ADNOC is a founding local population, while at the same establishing key sponsor of ‘Young ADIPEC’, infrastructure of benefit to the wider economy. a feature that provides students from schools across Abu Dhabi from the ages of 14 to 17 with the opportunity to gain hands- Overall, ADNOC serves as The need to create jobs on on experience in the energy the primary engine for the the one hand and to develop sector through a series of organic growth of Abu Dhabi a national workforce with the fun and engaging activities, Liwa Dates Festival: Supporting sustainable agriculture and economic and has plans to invest billions right capabilities and skill set including educational development in the Western Region: of Dirhams annually into the for the oil industry on the other field trips, site visits and competitions, and which In 2014, ADNOC extended the platinum sponsorship to the 10th edition of the Liwa Date Festival, local economy, in line with the was recognized as early as culminates at the region’s which was held under the patronage of HH Sheikh Mansour bin Zayed Al Nahyan Deputy Prime Abu Dhabi 2030 Plan for the 1999, when ADNOC’s National leading industry exhibition Minister and Minister of Presidential Affairs. The festival, which aims to preserve the UAE’s authentic development and growth of the Recruitment Committee (NRC) – ADIPEC, the Abu Dhabi heritage of palm tree cultivation, inspires local farmers in the Western Region to adopt more Emirate. and the Group Nationals International Petroleum sustainable cultivation and irrigation practices to help improve the quality of the UAE’s dates. Recruitment Department (GNRD) were established Exhibition and Conference, to oversee and facilitate the which was held at ADNEC Local hiring and government’s newly introduced during 10-13 November competency ‘Emiratization’ efforts. 2014. The aim of this Preserving the UAE’s festival with the world’s only The festivals attract nationals, development program is to build the camel beauty contest; the Al expatriates and tourists with youth’s interest in the oil cultural heritage and The Emirate’s population The current five year target is 48 Gharbia Watersports Festival, the aim of celebrating the and gas sector and develop 49 reviving the local is young and growing, and to achieve 75% Emiratization a 10-day event that attracts UAE’s longstanding bedouin it into a later career path. economy of the Western requires jobs. At the same time, across core ADNOC and amateurs and professionals culture, reviving the role of Region the requirements for technical Group Company positions by in watersports fom around poetry and its influence on ADNOC and our Group experts in the emirate are the end of 2017. This plan is The program hosted 240 the world; and the Al Gharbia UAE culture, introducing Companies also proudly sponsor increasing as the era of easy passed down to each of the students from Abu Dhabi Falconry Festival, which and preserving the authentic several high profile annual oil is coming to an end and the Group Companies in the form and the Western region in provides an opportunity camel breeds of Asayil and events that include the Liwa extraction of existing and new of annual plans. Each company 2014, a 35 per cent increase for falconers, experts and Majaheem, and ultimately Dates Festival, which showcases hydrocarbon reserves becomes prepares the annual intake plan from last year. Such researchers to enjoy the activating the region’s our nation’s valued fruit; the Al more complex and technically in the beginning of the year and programs play a critical role celebrated art of falconry. economic growth. Dhafra Camel Festival, a unique challenging. the progress on recruitment in attracting the younger is monitored on a monthly, generation to the energy quarterly and annual basis. sector and setting up a substantial local talent pool for the future. The next generation of engineers had the opportunity to meet H.E. Sheikh Nahyan, patron of the Young ADIPEC program, and demonstrate their skills and abilities in a host of industry-related activities. Students from visiting schools were inspired by the Minister’s visit, presenting to him some of their achievements in the programme, from their expertise in the energy sector to the cutting-edge videos from their site visits.
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae In 2014, approximately 69% the ADNOC Group Companies of executive and senior was spent on local suppliers; this management positions across is equivalent to approximately ADNOC and our Group AED 51 billion. Women in Science Companies were occupied by and Engineering Emiratis. Teams participate Due to the scale of our Academic institutes in the first GCC operations, we have the We are very proud of our family Hybrid-Electric Car capacity to help local businesses of educational institutions. Race grow and to foster the long- These were established by term development of our ADNOC to nurture a specialised, suppliers. Our local procurement competitive, and highly plans enhance the opportunity professional young workforce Petroleum Institute for economic participation of for the local oil and gas industry, The PI’s Women in Science locally based small-to-medium and help create educated and and Engineering Program enterprises in our businesses engaged citizens for Abu Dhabi. (WiSE) is a unique model and we aim to bridge the gap of operations dedicated to the support of female between their capacity and our The Petroleum Institute (PI) supply requirements. undergraduate students The Petroleum Institute (PI) pursuing their studies was launched in 2000 in Whilst many of our larger at PI. It aims to provide collaboration with the Colorado ADNOC Technical Institute training (JIT) opportunities for contracts are granted to the encouragement and Scholarship and School of Mines in the United environment allowing (ATI) trainees in relevant areas within leading engineering companies internship programmes States of America (USA). The female students to each company’s operational from around the world, these The ADNOC Technical Institute PI has the goal of creating succeed academically, sites. ADNOC Scholarship companies often use local (ATI) was established in a world-class institution in professionally and Programme suppliers for the provision 1978 as the first vocational engineering, education and personally. Every female ADNOC Schools ADNOC started its Scholarship of services, labour and other training institute in Abu Dhabi research areas of significance to student is automatically Programme in 1974, sponsoring amenities. ADNOC defines a to offer programmes that ‘ADNOC Schools’ was the oil, gas and broader energy a member of the WiSE talented UAE nationals to local supplier as a provider of meet the needs of ADNOC founded in 2008 by ADNOC industries. The PI currently offers community once she joins pursue their post-secondary materials, products and services and its Group Companies for in collaboration with the bachelor degrees in chemical, the PI. In 2014, two WiSE education in reputable that is based in the UAE or has teams from the PI, and skilled national manpower. Glenelg Country School in 50 electrical, mechanical, petroleum academic institutions locally 51 a local sponsor in the UAE. The a third (all male) team The ATI produces entry-level Maryland, USA. Its mission is to engineering and petroleum (internal scholarships) and sponsorship arrangement often participated in the GCC’s technicians in the oil and gas offer a world-class secondary geosciences, as well as master abroad (external scholarships), requires the supplier to share a first hybrid-electric car industry and contributes to education to national and degrees in chemical, electrical, and to specialise in the various percentage of the contract with challenge. The teams spent the community by providing expatriate students, preparing mechanical and petroleum technical disciplines essential to their sponsor, ensuring that at five months designing and an alternative to conventional them to join prestigious engineering. constructing their single- academic education for UAE universities worldwide. ADNOC the oil and gas industry. The first least some of the value of any graduating class of 10 students contract leaving the country is seat lightweight hybrid male nationals. The institute Schools has one branch in the In 2014, the PI celebrated the was in 1979. realised locally. cars to stringent race has a current capacity of capital city of Abu Dhabi and graduation of 209 engineers design and safety rules. 750 students. Since its three branches in the Western with 43.5% representation from The two stage competition Today there are 4,285 In 2014, approximately 89% of establishment, the ATI has Region (in Ruwais, Madinat UAE nationals. opened with the Electric active scholarships across the procurement budget across trained more than 3,500 Zayed and Ghayathi), across Grand Prix (E-GP), with technical staff in a range which there are over 6,000 undergraduate and teams trying to drive their of disciplines. The Group students enrolled. postgraduate programmes vehicles as far as possible Companies assist the ATI by around the world, with 1,302 in one hour, using only providing job instructional scholarships awarded in the energy stored in their 2014 alone. Enrolment of female students in PI (5 year trend) batteries. The second day was the Hybrid-Electric Grand Prix (HE-GP), where Scholarships awarded (5 year trend) teams combined petrol and electric power to travel Active scholarships to date Yearly intake of new students 1000 Institute the maximum distance 5,000 3,000 on the least amount of 4,285 2,566 energy in three hours. The 3,894 750 4,000 challenge, hosted by PI and held in collaboration with 2,000 Petroleum 3,000 500 Abu Dhabi National Energy 1,302 the Company PJSC TAQA, 2,000 in brought together students 1,497 1,000 817 250 1,236 from 11 universities across 964 1,000 ADNOC Scholarships the GCC. Number of students students Number of female 315 365 445 609 896 319 204
enrolled 0 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae from the government in order ADNOC also makes significant to develop a long-term strategy contributions to the community that supports these ambitions. such as the Ministry of Labour Sustainable and Social Affairs, Children Our efforts haven’t stopped with Special Needs Centre, Campus Initiative there however. Major contracts the Red Crescent, hospitals, signed in recent years with educational organisations such international oil companies as Zayed University, Higher Borouge (IOCs) call for training and Colleges of Technology, and To strengthen and build personnel development of Abu Dhabi Educational Zone sustainable leadership Emiratis, and support in the as well as cultural and sports capacity amongst the youth research and development clubs. In 2014, ADNOC and our in the UAE, in 2014 Borouge (R&D) sphere. To this end, Group Companies contributed launched, together with ExxonMobil, for example, agreed over AED 114 million towards the Environment Agency – to support the establishment community initiatives. Abu Dhabi, the Sustainable of a specialized R&D facility Campus Initiative, thereby Additionally, ADNOC and our at the Petroleum Institute supporting universities to Group Companies develop when it signed an agreement manage their environment infrastructure that provides local with ZADCO giving it a 28% footprint and engage in communities and businesses share in the Upper Zakum field community projects. The with benefits such as roads, development. goal of the Sustainability hospitals, mosques and schools. Campus Initiative is to Our indirect impacts are Achiever Oasis elementary, preparatory and Dhabi Oil Refining Company Our broad socio- strengthen and build difficult to quantify because of Programme (AOP) secondary school education (TAKREER) – which is seeking economic contributions leadership capacity their wide-ranging scale and stages. The AOP students to become a leading research ADNOC supports initiatives amongst the Emirate’s ADNOC has an innovative diversity. ADNOC also provides are given a stipend, while centre in the field of refining launched by other local entities Youth to address issues of summer training programme humanitarian aid and relief outstanding students are technology, process and product in the Emirate of Abu Dhabi and environmental sustainability known as the Achiever’s Oasis assistance towards international rewarded with bonuses and development, and at Borouge across the UAE to encourage and be the main agent Programme (AOP) which causes around the world. was established in 2002. incentives. – whose Abu Dhabi Innovation more youth towards innovation of change in the Emirate The programme aims to Centre seeks to develop the and excellence on future energy in working towards and motivate young nationals to In 2014, a total of 1,866 students competence of polymer science and sustainable development shaping sustainable 52 pursue studies in the fields of participated in the AOP in the UAE in partnerships with projects. This includes our communities. The initiative 53 engineering, exploration and programme across three regions; European innovation centres as support of the Young Future involves a self-audit within production and management Abu Dhabi, Al Ain and the well as local and international Energy Leaders (YFEL) the campuses first and a engineering. Western Region. educational institutions, programme by Masdar’s Institute subsequent correction plan including the PI. of Science and Technology. followed by a community Graduates from the AOP, often engagement project go on to join the Petroleum To carry out successful R&D embedding a sustainability Institute, enrol in local Focusing on research one needs researchers, and mind-set in the local universities or are awarded and development to build a sustainable R&D communities. scholarships abroad to pursue The focus on research and environment that benefits their university studies. development (R&D) is a the country as a whole, one key priority for ADNOC and needs to develop and utilize The AOP awards financial several R&D centres have local talent. As such, ADNOC incentives in addition to free been launched by our Group is seeking closer collaboration summer courses during the Companies, including at Abu with academia and support
AOP Participants in 2014
11% 53% 36% Western Abu Dhabi Al Ain Region
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Recognizing outstanding achievements The ADNOC HSE Award programme was created in 1997 and has since evolved remarkably. Submissions were accepted then under one category, HSE Performance, only.
Today the programme has The success of our programme expanded to include four main over the years has helped drive award groups: an increase in the number of award submissions, reflecting • Group 1: Projects – an increase in sustainable awarded across five practices across our categories: Innovation, participants. In 2014, a total of Safety, Occupational 236 submissions were received Health, Environment, and under the ADNOC HSE Award Sustainability. programme.
• Group 2: Corporate Submissions are evaluated by Performance and Leadership an independent judging panel, – awarded across two whose recommendations categories: HSE Performance inform a second round of and HSE Champion. judging that is performed by the ADNOC Director • Group 3: Special Recognition General and by ADNOC – awarded to companies Senior Management. Awards who submitted high quality are distributed in an annual projects that scored within ceremony to commemorate 54 the top five in their category the participants’ efforts and 55 but did not get either first or their achievements. second prizes in any of the main categories. Number of submissions • Group 4: Group Company Environment - 42 and Contractor Partnerships Occupational Health - 31 – awarded to the top Safety - 65 two contractors and Innovation - 54 their respective Group Sustainability - 32 Highlights Company for an outstanding HSE Performance & partnership in HSE Leadership - 21 ADNOC HSE Award implementation. • 18 award cycles Pursuing and sustaining excellence in HSE performance requires continuous improvement held since 1997 and unremitting focus. Leaders at every level of our organisation must continue to to encourage demonstrate their commitment towards establishing a high performance HSE culture with operational distinctive core capabilities and best-in-class standards and systems. HSE Award submissions (5 year trend) excellence • 4 award groups Recognising and appreciating our Group-wide efforts towards operational excellence is an 250 important component of reinforcing ADNOC’s commitment towards sustainable business to recognise practices. The ADNOC HSE Award programme was therefore established to recognize and achievements in 200 reward outstanding achievements, promote knowledge sharing pertaining to best practice, project execution, and foster an atmosphere of friendly competition amongst the ADNOC Group Companies corporate and our Independent Operators in their quest for sustainable development. 150 performance and partnerships 100 • 236 submissions received in 2014 50
Number of submissions 193 219 228 243 236
0 2010 2011 2012 2013 2014
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Innovation Safety Occupational Health Environment
Winner Winner Winner Winner TOTAL-ABK with entry “Drifting buoys: GASCO with entry “Taking fire-ground safety Innovation and technology at the service to a new dimension”. Rapid Deployment and NDC with entry “Reducing strain and back pain ADCO with entry “Achieving sustainable of oil spill response”. Being located nearby Telemetry Breathing Apparatus Entry Control in the Rig Operation”. Manual handling is known zero flaring through spiking gas compressor international marine borders, TOTAL-ABK oil Systems are designed to enhance personnel cause of chronic back pain among Floor-men. at ADCO Shah Field”. Gas flaring from oil spill contingency plan has to be significantly safety during BA operational activities. One of conventional heavy tools used on Rig industry represents 1.5% of the global Green efficient and robust. To further strengthen our Rapid Deployment allows for the immediate Floor are manual slips. Although trained on House Gas (GHG) emissions. In efforts to capability to respond in case of oil pollution, deployment of resources if crew sizes are kinetic, some Floor-men still adopted awkward improve the environmental performance, we integrated drifting buoys into our tools. restricted and quick intervention is required, body postures while using these tools. Through ADCO commissioned spiking gas compressors These devices will be positioned within the If resources are available or the incident is scientific studies, mechanized powered slips in 2014 in Shah Field. The project resulted in 56 oil slick and will drift with it according to protracted, Telemetry Entry Control is used. were introduced. Its use eliminates awkward recovery of 5.1 MMSCFD flared gas (~ 2.5 million 57 wind and sea currents. Sending up to 96 This system ensures that our emergency body postures and minimizes strains on household gas cylinders), reduction of 110,000 back. Consequently, Incidents of back pain, tons of CO per year and improved local air accurate positions daily they can provide 24h responders are controlled and accounted for 2 localization, thus significantly contributing to maintaining their safety. morbidity and absenteeism were reduced. quality. Further the project was registered an optimized response. Health performance and productivity increased under Clean Development Mechanism (CDM) to drastically. claim carbon credits.
Runner-Up Runner-Up Runner-Up Runner-Up ZADCO with entry “Enhanced gas lift surface BOROUGE with entry “e-PTW: Supporting safety systems – minimizing risk during artificial operational excellence”. e-PTW manages one ADMA-OPCO with entry “Process cards ADNOC Distribution with entry “Gas delivery in island SIMOPS”. The project utilizes a unique of the most essential/critical safety processes trump health risks”. These pocket sized a more sustainable way!” ADNOC Distribution combination of Lift Gas Safety System and in Borouge. An extensive review/optimization cards are tailor-made for each job and all designed a new enhanced and safe intake Annulus Monitoring System to prevent venting of the policies/procedures was performed associated activities of that job. The cards system for CNG Station. This new concept pressurized lift gas during either a dropped and a fully integrated e-PTW System was are designed with pictographs of the work incorporated as a pilot measure in one of object or an unplanned incident leading to loss implemented in Borouge. The new system that is being carried out. It also shows the daughter stations and significant energy saving of piping or well integrity. The system allowed fully integrates the Permit-to-Work System danger level of each activity, as well as what and reduction in HSE risk was noted, which for complete removal of the gas bleed line to to the Energy Isolation Management with an protection a worker needs to implement. The include: the production header and enhanced safety embedded Task Risk Management that is also listed precautions and pictures will provide to the Island operations through containment tightly integrated with SAP with real time a reminder to the worker and supervisor to • 232,650 kWh saved / year / station monitor the workers’ compliance. of the annulus lift gas inventory within the updates, assisting in getting a better overview • 176 tonnes CO2 emissions reduced / year / well itself with no pressurized surface lines on the status of the maintenance jobs. station remaining exposed. • AED 76,309 saved / year / station • Reduced maintenance costs and improved safety
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Corporate Performance and Sustainability Leadership
Winner The HSE Champion Award was received by Mr. Abdalla Saeed Al-Suwaidi, Chief Executive Borouge with entry “ADNOC partnership in a Officer of NDC, for his visible efforts and active sustainable supply chain”. Borouge and FERTIL commitment towards HSE affairs in 2014. processes for importing raw material have been greatly enhanced with this sustainable initiative. The HSE Performance Award was received by ADOC (Japan) to commemorate their efforts in This remarkable change will result in following adhering to and upholding ADNOC standards benefits over five year period: and international best practice. • 11,000 tonnes of hazardous chemicals no longer being transported via Abu Dhabi roads. 58 59 • Number of journeys made by trucks on Abu Special Recognition Awards Dhabi roads reduced by 17,500 trips. Special Recognition Awards were presented to the following Group Companies: • Reduction of 79% in CO2 emissions. • ADNATCO & NGSCO • Cost saving potential of AED 45 million • TAKREER • ESNAAD • ADGAS Runner-Up • FERTIL • Al Hosn Gas ADNOC DIST with entry “Fuel up your car and your conscience”. ADNOC Distribution as a major fuel distributor incorporated a “Think Partnership Awards Green and Build Green” concept by integrating Partnership Awards were presented to the LEED design concepts at two new service following contractors and their respective stations in Yas Island. The following benefits companies: were harvested: • IMI through TOTAL-ABK • A 50% reduction in water consumption (from • Drydocks World through NDC 100 to 50 m3/day) • A 40% reduction in the overall energy use (from 4,400,000 to 2,600,000 kWh/year) • The use of insulating concrete blocks reduced energy consumption by 20-30% (54,534 KWh/year) • Gasoline vapor recovery (35,700 liters/ year)
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae GRI Index
Profile Disclosure Level of Location of disclosure in Sustainability Report Profile Level of Location of disclosure in Sustainability Report Disclosure reporting or cross-reference Disclosure Disclosure reporting or cross-reference Strategy and Analysis State any specific limitations on the scope or boundary of Statement from the most 3.7 the report (see completeness l 74 1.1 senior decision-maker of the l 6,7 principle for explanation of organization. scope). Description of key impacts, risks, 1.2 l 6,7, 19 – 23 Basis for reporting on joint and opportunities. ventures, subsidiaries, leased facilities, outsourced operations, Organizational Profile 3.8 and other entities that can l 74 2.1 Name of the organization. l 8 significantly affect comparability from period to period and/or Primary brands, products, and/ between organizations. 2.2 or services. l 10 – 13 Data measurement techniques Operational structure of the and the bases of calculations, organization, including main including assumptions 2.3 divisions, operating companies, l 8 – 11 and techniques underlying subsidiaries, and joint ventures. estimations applied to the 3.9 compilation of the Indicators l 74 Location of organization›s and other information in the 2.4 headquarters. l 8 report. Explain any decisions not to apply, or to substantially Number of countries where diverge from, the GRI Indicator the organization operates, Protocols. and names of countries with 2.5 either major operations or that l 8, 12 – 13 Explanation of the effect of any are specifically relevant to the re-statements of information sustainability issues covered in provided in earlier reports, the report. and the reasons for such 3.10 re-statement (e.g., mergers/ l 74, 35 Nature of ownership and legal acquisitions, change of 60 2.6 form. l 9, 17 base years/periods, nature 61 of business, measurement methods). Markets served (including geographic breakdown, sectors 2.7 l 12 – 13 Significant changes from served, and types of customers/ previous reporting periods beneficiaries). 3.11 in the scope, boundary, or l 74, 35 measurement methods applied Scale of the reporting 8, 10 – 13. Financial performance is regarded in the report. 2.8 organization. l as proprietary information and is not fully disclosed. Table identifying the location of 3.12 the Standard Disclosures in the l 60 – 69 Significant changes during the report. 2.9 reporting period regarding size, l 6, 7, 10, 11 structure, or ownership. Policy and current practice 3.13 with regard to seeking external l 72 – 73 Awards received in the reporting assurance for the report. 2.10 period. l No awards received. Governance, Commitments, and Engagement Report Parameters Governance structure of Reporting period (e.g., fiscal/ the organization, including 3.1 calendar year) for information l 1 January 31 – 2014 December 2014 committees under the highest 17. All members of ADNOC’s governance provided. 4.1 governance body responsible l body are males and UAE nationals; there are for specific tasks, such as setting no minority group members. Date of most recent previous strategy or organizational 3.2 report (if any). l 4 September 2014 oversight. Indicate whether the Chair of the Reporting cycle (annual, biennial, 3.3 l Annual 4.2 highest governance body is also l 17 etc.) an executive officer.
Contact point for questions For organizations that have a 3.4 regarding the report or its l [email protected] unitary board structure, state the contents. number and gender of members 4.3 of the highest governance body l 17 Process for defining report 3.5 l 14 – 15 that are independent and/or content. non-executive members. Boundary of the report (e.g., countries, divisions, subsidiaries, Mechanisms for shareholders and employees to provide 3.6 leased facilities, joint ventures, l 74 4.4 l No mechanisms in place suppliers). See GRI Boundary recommendations or direction to Protocol for further guidance. the highest governance body.
l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Profile Disclosure Level of Location of disclosure in Sustainability Report Profile Level of Location of disclosure in Sustainability Report Disclosure reporting or cross-reference Disclosure Disclosure reporting or cross-reference
Linkage between compensation Approaches to stakeholder for members of the highest engagement, including governance body, senior 4.16 frequency of engagement by l 14 – 15 managers, and executives Board compensation is not linked to type and by stakeholder group. 4.5 (including departure l arrangements), and the organisational performance. organization›s performance Key topics and concerns that (including social and have been raised through environmental performance). stakeholder engagement, 4.17 and how the organization has l 14 – 15 Processes in place for the responded to those key topics highest governance body to and concerns, including through 4.6 ensure conflicts of interest are l 19 its reporting. avoided. Economic Process for determining the composition, qualifications, and 12, 13, 17, 45, 52, 53. Volume of estimated expertise of the members of the Members of ADNOC’s governance body are proved reserves is considered proprietary Disclosure on Management Approach l information and is not fully disclosed in this 4.7 highest governance body and l appointed by the SPC Chariman, H.H. Sheikh its committees, including any Kkalifa bin Zayed Al Nahyan. report. consideration of gender and other indicators of diversity. Direct economic value generated and distributed, including Internally developed statements revenues, operating costs, 45, 53. Some parameters relating to ADNOC’s employee compensation, financial performance are regarded as propri- of mission or values, codes of EC1 l conduct, and principles relevant donations and other community etary information and are not fully disclosed 4.8 to economic, environmental, l 18 investments, retained earnings, in this report. and social performance and the and payments to capital status of their implementation. providers and governments.
Procedures of the highest Financial implications and other governance body for overseeing risks and opportunities for the 43. Full disclosure on this indicator is planned the organization›s identification EC2 organization›s activities due to l in 2017. and management of economic, climate change. environmental, and social 4.9 performance, including relevant l 18 Coverage of the organization›s risks and opportunities, and EC3 l 32 – 33 adherence or compliance with defined benefit plan obligations. internationally agreed standards, Significant financial assistance 17. ADNOC receives little direct support from codes of conduct, and principles. EC4 l 62 received from government. the government. 63
Processes for evaluating the Range of ratios of standard entry highest governance body›s level wage by gender compared The UAE has no minimum wage. ADNOC’s own performance, particularly EC5 l entry level wage is highly competitive with 4.10 l No formal process in place. to local minimum wage at with respect to economic, significant locations of operation. market rates in the oil and gas sector. environmental, and social performance. Policy, practices, and proportion of spending on locally-based Explanation of whether and how EC6 l 50 the precautionary approach or suppliers at significant locations 4.11 principle is addressed by the l 19, 25 of operation. organization. Procedures for local hiring and proportion of senior Externally developed economic, In 2009, ADNOC launched the ADNOC EC7 management hired from the l 49, 50 environmental, and social local community at significant charters, principles, or other Sustainability Performance Initiative. Further 4.12 l information can be found in our inaugural locations of operation. initiatives to which the ADNOC 2009 Sustainability Report at organization subscribes or www.adnoc.ae endorses. Development and impact of infrastructure investments and services provided primarily EC8 for public benefit through l 46 – 48, 51 – 53 Memberships in associations commercial, in-kind, or pro bono (such as industry associations) engagement. and/or national/international advocacy organizations in which the organization: * Has Understanding and describing significant indirect economic 4.13 positions in governance bodies; l 14 – 15, 22 – 23 EC9 l 46 – 48, 51 – 53 * Participates in projects impacts, including the extent of or committees; * Provides impacts. substantive funding beyond routine membership dues; or * Volume of estimated proved reserves is Views membership as strategic. Volume and type of estimated OG1 proved reserves and production. l considered proprietary information and is not disclosed in this report. Environmental List of stakeholder groups 4.14 l 14 – 15 engaged by the organization. Disclosure on Management Approach l 16, 17, 34 – 36 Since energy is the dominant input and Basis for identification and Materials used by weight or output of operations, the value of a total 4.15 selection of stakeholders with l 14 – 15 EN1 volume. l materials indicator by weight or volume for whom to engage. our sector is limited.
l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Profile Level of Location of disclosure in Sustainability Report Profile Disclosure Level of Location of disclosure in Sustainability Report Disclosure Disclosure reporting or cross-reference Disclosure reporting or cross-reference Although we recycle used oils, the percentage is low compared to our overall material use Total water discharge by quality Percentage of materials used EN21 and destination. l 39 EN2 that are recycled input materials. l and it is not material in a global basis. The value of reporting on this indicator for our sector is limited. Total weight of waste by type EN22 l 40 Direct energy consumption by and disposal method. EN3 primary energy source. l 36 Total number and volume of EN23 l 41 Indirect energy consumption by significant spills. EN4 primary source. l 36
Energy saved due to Weight of transported, imported, EN5 conservation and efficiency l 36 exported, or treated waste improvements. deemed hazardous under the EN24 terms of the Basel Convention l 40 Initiatives to provide energy- Annex I, II, III, and VIII, and efficient or renewable energy percentage of transported waste based products and services, shipped internationally. EN6 and reductions in energy l 36, 37 requirements as a result of these initiatives. Identity, size, protected status, and biodiversity value of water bodies and related habitats Initiatives to reduce indirect EN25 significantly affected by the l 39 EN7 energy consumption and l 36, 37 reporting organization›s reductions achieved. discharges of water and runoff. Total water withdrawal by EN8 source. l 39 Initiatives to mitigate environmental impacts of EN26 l 21, 38, 43 Water sources significantly products and services, and EN9 affected by withdrawal of water. l 39 extent of impact mitigation.
Percentage and total volume of EN10 l 39 Percentage of products sold and water recycled and reused. EN27 their packaging materials that l Disclosure on this indicator is planned in 2016. are reclaimed by category. Location and size of land owned, leased, managed in, or adjacent 64 EN11 to, protected areas and areas of l 41 Monetary value of significant 65 high biodiversity value outside fines and total number of non- protected areas. EN28 monetary sanctions for non- l No fines received in 2014. compliance with environmental Description of significant laws and regulations. impacts of activities, products, and services on biodiversity in EN12 protected areas and areas of l 41, 42 Significant environmental high biodiversity value outside impacts of transporting products protected areas. and other goods and materials EN29 used for the organization›s l Disclosure on this indicator is planned in 2016. EN13 Habitats protected or restored. l 41, 42 operations, and transporting members of the workforce.
Strategies, current actions, Total environmental protection EN14 and future plans for managing l 41, 42 EN30 expenditures and investments l 43 impacts on biodiversity. by type.
Total amount invested in Number of IUCN Red OG2 l 36, 43 List species and national renewable energy. conservation list species with EN15 l 41, 42 Total amount of renewable habitats in areas affected by OG3 l 36, 43 operations, by level of extinction energy generated by source. risk. Number and percentage of significant operating sites in Total direct and indirect OG4 l 41, 42 EN16 greenhouse gas emissions by l 35 which biodiversity risk has been weight. assessed and monitored.
Other relevant indirect Volume of formation or EN17 greenhouse gas emissions by l Disclosure on this indicator is planned in 2016. OG5 produced water. l 40 weight. Volume of flared and vented Initiatives to reduce greenhouse 35 – 37. Full disclosure on this indicator is OG6 l 35, 36 EN18 gas emissions and reductions l hydrocarbon. achieved. planned in 2016. Amount of drilling waste (drill Emissions of ozone-depleting EN19 l 38 – 39 OG7 mud and cuttings) and strategies l 40 substances by weight. for treatment and disposal.
NOx, SOx, and other significant Benzene, Lead and Sulfur EN20 air emissions by type and l 38 OG8 l 38 weight. content in fuels.
l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Profile Level of Location of disclosure in Sustainability Report Disclosure Profile Disclosure Level of Location of disclosure in Sustainability Report Disclosure reporting or cross-reference Disclosure reporting or cross-reference
Labor Practices and Decent Work Ratio of basic salary and remuneration of women to Disclosure on Management Approach l 24 – 33 LA14 men by employee category, by l 31 30, 31. A breakdown by gender is not avail- significant locations of operation. able for permanent employees. The value of Total workforce by employment reporting on this aspect of the indicator is Return to work and retention LA1 type, employment contract, and l limited considering the majority of ADNOC’s LA15 rates after parental leave, by l Disclosure on this indicator is planned in 2016. region, broken down by gender. employees are employed on a permanent gender. contract. Human Rights Total number and rate of new Disclosure on Management Approach l 20, 21, 29, 30, 45, 46 employee hires and employee LA2 l 31 turnover by age group, gender, Percentage and total number and region. of significant investment agreements and contracts that Benefits provided to full-time 32 – 33. Benefits provided to full-time em- HR1 include clauses incorporating l 20, 21 employees that are not provided ployees that are not provided to part-time or human rights concerns, or that LA3 to temporary or part-time l temporary employees vary by Group Compa- have undergone human rights employees, by major operations. ny has have been excluded from the scope of screening. this report. Percentage of significant Percentage of employees Employee associations are not permitted in suppliers, contractors and LA4 covered by collective bargaining l the UAE under Federal Law. ADNOC has no HR2 other business partners that l 20, 21 agreements. collective bargaining agreements as such. have undergone human rights screening, and actions taken. Minimum notice period(s) The ADNOC Management of Change Protocol does not stipulate the minimum notice period. Total hours of employee training regarding significant operational However, ADNOC’s operating companies LA5 changes, including whether l on policies and procedures implement procedures to ensure employees concerning aspects of human it is specified in collective are informed of changes well in advance of ADNOC does not directly provide trainings on agreements. HR3 rights that are relevant to l human rights issues. their implementation. operations, including the percentage of employees Percentage of total workforce trained. represented in formal joint management-worker health Total number of incidents of LA6 and safety committees that l 25 No incidents of discrimination were reported HR4 discrimination and corrective l to ADNOC in 2014. help monitor and advise on actions taken. occupational health and safety programs. Operations and significant 66 suppliers identified in which 67 Rates of injury, occupational the right to exercise freedom 29. Employee associations are not permitted diseases, lost days, and HR5 of association and collective l in the UAE under Federal Law. 26, 27. Absenteeism rate and occupational bargaining may be violated or at LA7 absenteeism, and number of l disease rate are not included in this report. work-related fatalities by region significant risk, and actions taken and by gender. to support these rights. Operations and significant Education, training, counseling, suppliers identified as having prevention, and risk-control significant risk for incidents of programs in place to assist HR6 l 29 LA8 l 30 – 32 child labor, and measures taken workforce members, their to contribute to the effective families, or community members abolition of child labor. regarding serious diseases. Operations and significant Health and safety topics covered suppliers identified as having Trade unions are not permitted in the UAE significant risk for incidents of LA9 in formal agreements with trade l under Federal Law. unions. HR7 forced or compulsory labor, and l 29 measures to contribute to the elimination of all forms of forced Average hours of training per 30, 31. The breakdown of employee training by gender is not material for ADNOC at an or- or compulsory labor. LA10 year per employee by gender, l and by employee category. ganisational level. ADNOC reports on training expenditure only. Percentage of security personnel trained in the organization›s 20. Security for ADNOC’s onshore and policies or procedures offshore facilities is provided by CICPA; Programs for skills management HR8 l and lifelong learning that concerning aspects of human trainings on human rights and otherwise are support the continued rights that are relevant to provided by CICPA. LA11 employability of employees and l 30, 31 operations. assist them in managing career endings. Total number of incidents of violations involving rights of HR9 indigenous people and actions l No incidents or complaints to report in 2014. Percentage of employees taken. receiving regular performance LA12 l 30, 31 and career development reviews, Percentage and total number by gender. of operations that have been HR10 subject to human rights reviews l 29 Composition of governance and/or impact assessments. bodies and breakdown of employees per employee Operations where indigenous LA13 category according to gender, l 17 communities are present or ADNOC does not have operations in areas age group, minority group OG9 affected by activities and where l where indigenous communities are present or membership, and other specific engagement strategies could be affected. indicators of diversity. are in place.
l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Profile Level of Location of disclosure in Sustainability Report Profile Disclosure Level of Location of disclosure in Sustainability Report Disclosure Disclosure reporting or cross-reference Disclosure reporting or cross-reference
Number of grievances related Product Responsibility to human rights filed, addressed 45, 46. No grievances related to human rights Disclosure on Management Approach l 21, 37 HR11 and resolved through formal l were received in 2014. grievance mechanisms. Life cycle stages in which health and safety impacts of products Society and services are assessed for PR1 improvement, and percentage of l 21 16, 19, 22, 23, 37, 44 – 53. The majority of significant products and services ADNOC’s operations are located in remote Disclosure on Management Approach l categories subject to such onshore and offshore areas, none of which in- procedures. volved voluntary or involuntary resettlement. Total number of incidents of Percentage of operations non-compliance with regulations with implemented local and voluntary codes concerning SO1 community engagement, impact l 45, 46 PR2 health and safety impacts of l No incidents to report in 2014. assessments, and development products and services during programs. their life cycle, by type of outcomes.
Percentage and total number of Type of product and service SO2 business units analyzed for risks l 19 information required by related to corruption. procedures and percentage of PR3 significant products and services l 21 Percentage of employees trained There is no formal anti-corruption training subject to such information SO3 in organization›s anti-corruption l requirements. policies and procedures. programme as of current Total number of incidents of non-compliance with regulations Actions taken in response to SO4 l 19 and voluntary codes concerning incidents of corruption. PR4 product and service information l No incidents to report in 2014 and labeling, by type of Public policy positions and outcomes. SO5 participation in public policy l 37 development and lobbying. Practices related to customer satisfaction, including results PR5 l 21 Total value of financial and in- of surveys measuring customer kind contributions to political ADNOC does not provide financial support or satisfaction. SO6 parties, politicians, and related l in-kind contributions to any political parties. institutions by country. Programs for adherence to 68 laws, standards, and voluntary 69 codes related to marketing Total number of legal actions for PR6 communications, including l 21 anti-competitive behavior, anti- No cases of anti-competitive behavior, anti- SO7 l trust and monopoly practices were received advertising, promotion, and trust, and monopoly practices sponsorship. and their outcomes. in 2014. Total number of incidents of Monetary value of significant non-compliance with regulations fines and total number of No fines or monetary sanctions were received and voluntary codes concerning SO8 non-monetary sanctions for l in 2014. PR7 marketing communications, l No incidents to report in 2014 non-compliance with laws and including advertising, promotion, regulations. and sponsorship by type of outcomes. Operations with significant 45, 46. No operations were identified to have SO9 potential or actual negative l significant potential or negative impacts on Total number of substantiated impacts on local communities. local communities in 2014. complaints regarding breaches PR8 of customer privacy and losses l No incidents to report in 2014 of customer data. Prevention and mitigation measures implemented in Monetary value of significant SO10 operations with significant l 45, 56. See response to SO9. fines for non-compliance with potential or actual negative PR9 laws and regulations concerning l No incidents to report in 2014 impacts on local communities. the provision and use of products and services. Number and description of significant disputes with local OG10 l No disputes to report in 2014. Volume of biofuels produced communities and indigenous OG14 and purchased meeting l 43 peoples. sustainability criteria.
Number of sites that have been decommissioned and sites that No sites were decommissioned or in the OG11 are in the process of being l process of being decommissioned in 2014. decommissioned.
Operations where involuntary resettlement took place, the No operations involving voluntary or OG12 number of households resettled l involuntary resettlement took place in 2014. in each and how their livelihoods were affected in the process.
Number of process safety OG13 events, by business activity. l 27
l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators l Fully reported l Partially reported l Not reported Indicators in bold represent core GRI indicators
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Acronyms and abbreviations
A&AD Audit and Assurance Division CO Carbon Monoxide International Petroleum Investment Occupational Health Risk IPIC OHRA Company Assessment ADAA Abu Dhabi Accountability Authority CO2 Carbon Dioxide International Union for Conservation OSRC Oil Spill Response Centre IUCN ADIA Abu Dhabi Investment Authority CO2e Carbon Dioxide Equivalent of Nature PI Petroleum Institute ADIC Abu Dhabi Investment Council CoP Code of Practice (ADNOC) KPI Key Performance Indicator PP Polpropylene ADNOC Abu Dhabi National Oil Company COP Conference of Parties (UNFCC) km Kilometre ppm Parts per million Abu Dhabi Retirement Pensions and CPD Civil Projects Division 2 ADRPBF km Square kilometre Benefits Fund RAA Remote Area Allowance CSR Corporate Social Responsibility kWh Kilowatt hour Abu Dhabi Water and Electricity RAMS Remote Area Medical Services ADWEA Authority E&P Exploration and Production LNG Liquefied Natural Gas R&D Research & Development AED Arab Emirates Dirham EOR Enhanced Oil Recovery LTI Lost Time Incident RHC Ruwais Housing Complex ADNOC Group HSE Steering ERD Extended Reach Drilling LTIF Lost Time Incident Frequency Rate AGHSESC Committee RHD Ruwais Hospital Division FAR Fatal Accident Rate m3 Cubic metre ALARP As Low as Reasonably Practicable RWDC Restricted Work Day Case G3.1 Generation 3.1 (GRI indicators) Masdar Abu Dhabi Future Energy Company AOP Achievers Oasis Programme SAS Sahil, Asab and Shah Fields GHG Greenhouse Gas MMSCF Million Standard Cubic Feet 70 API American Petroleum Institute SGD Shah Gas Development 71 Group Nationals Recruitment GNRD MMSCFD Million Standard Cubic Feet per Day AQMS Air Quality Management System Department SO2 Sulphur Dioxide MSBPD Million Standard Barrels per Day ASA Advertising Standards Authority GRI Global Reporting Initiative SOx Sulphur Oxides MSD Medical Services Division ATI ADNOC Technical Institute GSAD Glenelg School of Abu Dhabi SPC Supreme Petroleum Council MSDS Material Safety Data Sheet BAP Biodiversity Action Plan H2S Hydrogen Sulphide SRU Sulphur Recovery Unit MWh Megawatt hour Bbl Barrel HAAD Health Authority of Abu Dhabi TLD Thermo-luminescent Dosimeters NAF Non-aqueous Fluid Central Environment Protection HCFC Hydrochlorofluorocarbon TRIR Total Recordable Incident Rate BeAAT National Emergency Crisis and Facility NCEMA HR Human Resources Disaster Management Authority TWL Thermal Work Limit BMI Body Mass Index HSE Health, Safety and Environment NGL Natural Gas Liquid UAE United Arab Emirates BMP Best Management Practice Health, Safety and Environment UK United Kingdom HSEIA NGV Natural Gas for Vehicles boe Barrel of oil equivalent Impact Assessment United Nations Framework NOx Nitrogen Oxides UNFCCC Health, Safety and Environment Convention on Climate Change BPD Barrels Per Day HSEMS Management System Natural Occurring Radioactive NORM Competence Assurance Material USA United States of America CAMS Management System IOC International Oil Company NRC National Recruitment Committee UZ Upper Zakum International Association for Oil & CCUS Carbon Capture, Usage and Storage IOGP Gas Producers OBM Oil Based Mud VMD Vehicle Monitoring Devices CDM Clean Development Mechanism IGD Integrated Gas Development O&G Oil and Gas VOC Volatile Organic Compound CFC Chlorofluorocarbon ILO International Labour Organisation ODS Ozone Depleting Substance WBM Water Based Mud CNG Compressed Natural Gas IMO International Maritime Organisation Oil and Gas Sector Supplement Western Region Development OGSS WRDC Critical Infrastructure and Coastal (GRI) Council CICPA Intergovernmental Panel for Climate Protection Authority IPCC Change YFEL Young Future Energy Leaders
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae 72 73
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae About our reporting Report contributors This report covers the major issues that reflect ADNOC’s The reporting entities that have participated in the provision material topics, and is guided by a content selection of the ADNOC 2014 Sustainability Report content and/ process as described below. or in the report’s internal verification include the ADNOC Directorates, the ADNOC Group Companies, the Independent Operators, and the ADNOC Academic Institutes.
Reporting framework The following should be noted about the performance data gathered from the ADNOC is a registered Organisational sustainability reporting units that have Group Companies Stakeholder of the Global Reporting contributed towards the content of this report: Initiative (GRI). • ADNOC headquarters: Performance is Our reporting is prepared in accordance included in all sections of this report. with the Global Reporting Initiative GRI G3.1 Sustainability Reporting Guidelines, including • Group Companies: Performance is included in the Oil and Gas Sector Supplement. Several all sections of this report aspects of this report have been externally assured; a copy of the External Assurance • Independent Operators: Performance is Statement is available on page 72. included in the ‘People’ section (in full), ‘Environment’ section (in full) and ‘Society’ Report boundary and scope section (in part) of this report. The term This report pertains to ADNOC’s performance ‘ADNOC Operating Companies’ has been used in the 2014 calendar year, and covers our where the performance of the Independent operations in the United Arab Emirates and Operators has been included with that of the elsewhere where specified. Where limitations ADNOC Group Companies. have been identified in the scope of our data, it Independent Operators Academic Institutes has been stated in the report. 74 • Academic Institutes: Performance is included 75 in the ‘Society’ section of this report only, unless otherwise stated.
Content selection process Photo contributors Our reporting focuses on the environmental and Further information about this step and the social challenges that matter most to our key material topics reflected in this report can be stakeholders. These include local communities, found on page 15 of this report. partners, government and non-government Entity Page No. Entity Page No. Step 5: Our Internal Review Committee reviews organisations, customers, employees, media, the content selection to ensure that coverage is 7, 22, 33, 44, 48, 49, 52, academics, contractors and suppliers. ADNOC Borouge 19 complete, relevant and balanced. 54 – 59 We use a thorough process to select content for our reporting based on information from external ADCO 31 ESNAAD 26 and internal sources. This process includes: INCLUDED IN SUSTAINABILITY Step 1: identify and understand topics of REPORT significance to our external stakeholders through ADGAS 24, 25, 29 GASCO 29 a range of stakeholder engagements and reviews. INCLUDED IF HIGH SUSTAINABILITY CONTEXT OR Step 2: Identify topics of significance to ADNOC’s COVERED ON OUR WEBSITE ADMA-OPCO 4, 5, 13, 14, 16, 17, 23, 25, 31 Petroleum Institute 46, 51 business through our established internal processes. ADNOC DISTRIBUTION 47 TAKREER 6, 43 Step 3: Combine the results into a matrix and assess each topic in terms of its wider economic, NOT environmental and social impact. REPORTED Al Hosn Gas 20 ZADCO 35, 39 Step 4: We include all the highest priority topics in our report. Those at the next level of importance are included if they have a higher ADNOC 2014 Sustainability Photo Contest Winners weight in “sustainability context”. · Cover Photo: ‘The Wisdom Tree’ – courtesy of Rashed Saad Al Sumaiti (ADCO) · Page 34: ‘Mangrove Seedlings’ – courtesy of Amgad Ali Al Shaffai (ADNOC)
Rising to the Energy Challenge - 2014 ADNOC Sustainability Report www.adnoc.ae Please direct any questions regarding this publication to:
Health, Safety and Environment Division Abu Dhabi National Oil Company P.O. Box 898 Abu Dhabi, United Arab Emirates T: +971 (0)2 6024740 F: +971 (0)2 6668089 E: [email protected]
The contents of this report can be reproduced or re-printed provided that ADNOC is credited.