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BP in Georgia Sustainability Report 2013 Pdf / 2 MB BP in Georgia Sustainability Report 2013 bp.com/sustainability Building a stronger, safer BP Report scope This report covers the activities of BP Georgia, focusing on performance in 2013 while providing updates on developments in 2014. It has been prepared by our business in Georgia. Data is shown for activities where we are the operator, unless indicated otherwise. In the report, references to ‘BP’ and Unless otherwise indicated all currency the ‘BP group’ shall mean BP p.l.c., its amounts are denominated in US subsidiaries and affiliates and, unless dollars. As with all our previous BP otherwise stated, the text does not in Georgia sustainability reports, this distinguish between the operations report has been independently verified. and activities of BP p.l.c. and those of its subsidiaries and affiliates. Unless specified otherwise, references in this report to ‘us’, ‘we’, and ‘our’ shall refer to companies in the BP group operating in Georgia. Front cover imagery Pump station 1 Georgia (PSG 1) is one of the two pumping stations on the BTC pipeline located in Gardabani district close to the Georgia-Azerbaijan border. Left image: Operations performed at PSG 1 are pumping, pipeline pigging operations, fiscal metering, and process monitoring and control. Centre image: On average 35 BP employees and contractors work and live at PSG 1 during a day. Right image: MOL turbine arrangement with turbine enclosure and exhaust stacks at the PSG 1 in Gardabani. An introduction to Ernst & Young’s assurance process We have reviewed the BP in Georgia Sustainability Report 2013 in order to provide assurance to BP management that the data, statements and assertions made regarding the sustainability performance of BP in Georgia are supported by evidence or explanation. Our scope of work and conclusions can be found on page 40. factors including future levels of industry product supply; demand Report and Form 20-F 2013. Material is used within this document Cautionary statement and pricing; operational problems; general economic conditions; to describe issues for voluntary sustainability reporting that are con- BP in Georgia Sustainability Report 2013 contains certain for- political stability and economic growth in relevant areas of the sidered to have the potential to significantly affect sustainability in ward-looking statements concerning the businesses, operations world; changes in laws and governmental regulations; exchange the view of the company and/or are expected to be important in the and strategy of BP. rate fluctuations; development and use of new technology; changes eyes of internal or external stakeholders. Material for the purposes By their nature, forward-looking statements involve risks and uncer- in public expectations and other changes in business conditions; of this document should not, therefore be read as equating to any tainties because they relate to events and depend on circumstanc- the actions of competitors; natural disasters and adverse weather use of the word in other BP p.l.c. reporting or filings. es that will or may occur in the future. Actual results may differ conditions; wars and acts of terrorism or sabotage; and other from those expressed in such statements depending on a variety of factors discussed elsewhere in this document and in BP Annual BP2 in GeorgiaBP in Georgia Sustainability Sustainability Report Report 2013 2013 Overview Overview Contents 2 Management introduction 3 Achievements and challenges BP Georgia’s general manager reviews developments in 2013 and future 4 Our progress in 2013 prospects. How we operate Focus areas 6 How we operate 26 Environment BP Georgia in context, governance and Environmental performance and how we management systems, human rights and manage our impact. delivering local benefit. 30 Society Our people 16 Our people and values Our approach to engagement with Workforce composition, learning and communities, building local capacity and development, our values and the BP code social investment projects. of conduct. 36 Our stakeholders and reporting 20 Safety Our safety performance, safety management, risk management and emergency response. Safety Our reporting and performance data 38 BP Georgia in figures 40 Assurance statement Ernst & Young’s conclusions on BP Georgia’s reporting. Environment Society Our reporting BP Georgia in figures BP in Georgia Sustainability Report 2013 1 A view from BP Georgia’s general manager 2013 was another good year for our safety It has been a major piece of work to get this and operational integrity. We suffered just two far with this massive project, even though recordable injuries in more than three and a half construction work – which presents challenges million man-hours of operations. Our workforce we are familiar with from previous projects – is drove more than nine million kilometres – and only just beginning. SCP expansion will put new did so without any severe vehicle accidents. We demands on our own people, not least the need continued to work closely with our contractors, to maintain the reliability of existing operations who log about 70% of our annual man-hours, while simultaneously delivering a major project. It to develop their safety standards. By working will also be demanding for local contractors. We with them on site – where they are frequently anticipate spending approximately $400 million carrying out hard physical labour, using heavy with local contractors during the construction equipment, and often in geographically challenging phase of the project. The challenge will be whether environments – and by engaging with their there is sufficient depth of local contractor capacity executives and leaders, we are helping to make and appropriate levels of competency to meet sure that a strong safety culture is in place. our high standards. We will need skilled local tradesmen, such as welders, electricians, and We have maintained our excellent record of pipe fitters, who are certified against reputable reliability in our operations. We operated the standards. South Caucasus Pipeline (SCP) at more than 99% of its capacity in 2013, and achieved more than There are many opportunities ahead as well 99% operational efficiency on both the Western as challenges. But there is evidence, not Route Export Pipeline and the Baku-Tbilisi-Ceyhan only in our own operations, but more widely oil pipeline. We have now achieved this highly across Georgian society, that the country is efficient operating record for several years, and increasingly well-positioned to address the I would like to thank all those who have made it demands ahead. The rapid establishment of a happen by doing their jobs so well, every day. The stable operating environment for business after professionalism of our operating and maintenance government elections in 2013 was a positive staff has been exemplary; when we maintain and sign. We look forward to working effectively fix equipment, we do it well, and our reliability with the new administration, and in playing our We have now achieved this record is maintained. part in contributing to the country’s continuing development, through our operations and in the We continued to make progress with the planning highly efficient operating varied social investment programmes that we and permitting required for the SCP expansion support. record for several years, and project, which will see the construction of two I would like to thank all those new compressor stations on the pipeline and the The five years I have had as general manager creation of approximately 62 kilometres of new here in Georgia have seen a lot of positive who have made it happen by pipeline in parallel with the existing line in Georgia. change. I wish my successor, Chris Schlueter, doing their jobs so well, every We have completed the required programme who succeeds me in March, every success going of consultation with potentially affected parties, forward. day. engaging local communities, landowners, local government, central government departments, Neil Dunn and others. We passed an important milestone in 2013 with the government’s acceptance of the environmental and social impact assessment (ESIA), which was the documented result of this wide-ranging consultation and evidence Neil Dunn gathering effort. The ESIA builds on the trust General Manager, BP Georgia we have developed with stakeholders from past projects and operations. SCP expansion, which February 2014 forms an integral part of the stage 2 development of the Shah Deniz field in the Caspian Sea, will contribute to the creation of a new southern gas corridor from the Caucasus through to customers in Europe. Establishing this corridor is a very important development for the region as a whole. 2 BP in Georgia Sustainability Report 2013 Achievements and challenges Overview We highlight below our most significant achievements in 2013 and the challenges we face in the future. Achievements Challenges Our values Effective operations: We continued the safe and Maintaining safe operations on WREP: We have five values that express our efficient operation of all three existing pipelines The age of certain sections of the pipeline shared understanding of what we in Georgia, and successfully completed coupled with its passage through areas with believe, how we aim to behave and what a number of significant maintenance and geo-hazards and many river crossings makes we aspire to be as an organization. modification projects (page 8). WREP maintenance and monitoring a constant challenge (page 8). Safety HSE performance: We maintained a good health, safety and environmental record. While Competency requirements: As we move from Safety is good business. Everything we do we had two day away from work case incidents, early construction works on the SCP expansion relies upon the safety of our workforce and we had no major vehicle accidents and no project into full construction in the years ahead, the communities around us. We care about major incidents in our operations and projects we will need access to skilled contractors with the safe management of the environment.
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