THE NEW REFINERY OF PRODUCTIVE TURKEY STAR RAFİNERİ A.Ş.
2 ¹ STAR RAFİNERİ A.Ş. INDEX
General Manager’s Message 5 Milestones 29 STAR Refinery Board of Directors 7 STAR Refinery in figures 31 Mission, Vision and Values 11 Human Resources Management 37 Integrated Management System 16 Occupational Health Safety Management 41 About SOCAR 19 STAR Refinery OHS and Environmental Policy 45 About SOCAR Turkey 21 OHS Performance Data 47 About Star Refinery 23 Environmental Management 51 Technical Information 25 Social Impact Management 61 Corporate Risk Management 71 Production Plan 26
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GENERAL MANAGER’S MESSAGE
Dear Shareholders,
Taking strength from Azerbaijan and Turkey’s brotherhood, I deeply feel glad and also proud that together we’ve launched STAR Refinery, the shining star of Turkish economy and as the distinguished symbol of strategic collaboration between Turkey and Azerbaijan, to our country and the entire world.
We’ve laid the foundation in Aliağa in 2011 and inaugurate on 19th October 2018 with a majestic ceremony. In a very short period of time, we’ve reached the maximum capacity with high added-value, national and domestic oil products -which were previously imported- and brought these strategic products in to Turkish economy. This provides an approximate of 1,5 billion dollars annual saving in Turkey’s balance of foreign trade.
Protecting the environment, work safety and digital transformation were the absolute essentials of refinery’s establishment phase. I’d proudly highlight that we’re a “digital refinery” in full measure, in terms of being efficient by using modern production and control technologies, leading environment – friendly and work safety practices.
From the first day, we’ve been motivated by the moment we bring our refinery into being. Now, this is our mutual glory!
I frankly thank to all my colleagues who bring this exceptional facility with meticulous and devotedly in to Turkey and to our former employees who contributed in the past.
Respectfully,
Mesut İLTER General Manager
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STAR REFINERY BOARD OF DIRECTORS
Vagif ALIYEV - Chairman of the Board Süleyman GASIMOV - Yönetim Kurulu Üyesi
Born in 1959, Vagif Aliyev graduated from Azerbaijan Civil Engineering Suleyman Gasimov was born on 26th December 1961 in Fakhraly village Institute’s Hydraulic Engineering program in 1981. Successfully of Bolnisi county, Republic of Georgia. He was graduated from Azeribaijan undertaken many assignments in professional life; Aliyev started National Economy Institute ( now Azerbaijan State university of Economics) working at Caspian Sea Oil & Gas Production Union’s Azer Sea Oil in 1982 and Academy of Public Administration - subject to President of Construction Trust, Construction and Mounting Department Number the Republic of Azerbaijan - in 2003. Held various positions (Accountant, 3 as an engineer. Aliyev, has been Head of Investments at the State Oil economist, deputy chief accountant and chief accountant) in oil and gas Company of Azerbaijan Republic since 2005. Aliyev also has been the industry between 1982 - 1991. Gasimov became the Chief Accountant of Chairman of Board of Star Rafineri A.Ş. since 2008. Azerineft (Azeri Oil) Department of Oil and Gas Production Khazardenizneftgas (Caspian Sea Oil and Gas) Production Unit and OffShore Oil and Gas Production Unit between 1991 - 2003. Gasimov held the positions of David MAMMADOV - Vice Chairman Economy and Accounting Division Manager, Department Assistant Manager and Department Manager at SOCAR between 2004 - 2006. In 2006, became David Mammadov was born in 1955. In 1980, graduated from SOCAR Vice President for Economic Issues and still holds the position. M. Azizbeyov Institute of Oil and Chemistry, Faculty of Chemical Suleyman Gasimov received “Taraggi” (Progress) Medal in 2006 and “Shohrat” Technology of Oil and Gas as a Chemistry Engineer. Started his career Medal (Medal of Honour) in 2006. Gasimov has PhD degree in Economics and at Baku New Oil Refinery in 1976 as an operator, Mammadov holds also has an article in a scientific work and more than 15 scientific articles. the positions of Vice President for Refining in State Oil Company of Gasimov has been Board Member of the Azerbaijan Republic since 2005 and also Board Member of STAR STAR Rafineri A.Ş. Rafineri A.Ş. since 2008. Farrukh GASIMOV - Board Member
Zaur GAHRAMANOV - Board Member Born in 1959 in Baku - Azerbaijan, Farrukh Gasimov graduated from Faculty of Law at Baku State University in 1981. He got his PhD degree from Moscow Received high-school education in Kings College London, UK; Public Studies and Law Institute in 1985. From 1985 to 1991, Gasimov Zaur Gahramanov then got bachelor’s and master’s degree from worked as an academic and associate professor at the University of Public Azerbaijan State University Economics, International Economic Administration and Politics in Baku. Farrukh Gasimov has been Deputy Head Relations department. He pursued his academic career in The of the Legal Department in SOCAR since 2006 and Board Member of STAR University of Chicago Booth School of Business, USA with MBA degree, RAfineri A.Ş. since 2008. between 2014-2016. Started his career at KPMG in the field of tax, Gahramanov worked in the field of law and tax until 2008 at various Emil EMINOV – Board Member companies. Zaur Gahramanov, joined SOCAR in April 2008, and became CFO at SOCAR Trading S.A. in Switzerland. In 2013, appointed Graduated from Dokuz Eylül University Economics Department in 2000, to SOCAR Azerbaijan Investments Department as Deputy General Emil Eminov then got his MBA degree in Finance and Strategy from Manager, Gahramanov also carries out his role as CEO of SOCAR University of Pensylvania-The Wharton School. He started his career at Turkey. Zaur Gahramanov is also board members of PriceWaterHouseCoopers and from 2004 to 2012 held consultant, partner, SOCAR Trading S.A., SOCAR Energy Switzerland and Neftçi PFK. founder, co-founder positions in various companies in finance. Eminov, then moved to Azerbaijan and pursued his career as Assistant General Manager / Project Sponsor at SOCAR Polymer factory. He holds the positions of Head of Operations at SOCAR Turkey since August 2016 and Board Member at STAR Rafineri A.Ş. since 2018..
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STAR Refinery was inaugurated on 19th October 2018 Friday, in İzmir Aliağa. Recep Tayyip Erdoğan; President of the Republic of MISSION, VISION Turkey, İlham Aliyev; President of Azerbaijan Republic, relevant ministers and SOCAR executives attended the ceremony, in which AND VALUES the other affiliates of SOCAR; Petlim Container Terminal, Petkim Wind Power Plant and Aliağa Head Office were also inaugurated.
MISSION AGILITY We predict changing needs, competitive market trends and opportunities of our clients. We embrace Reducing Turkey’s foreign dependency with petro-chemistry integration by producing change, proceed with endurance and maintain to protect our business focus even under fast changing high added-value products. conditions.
ADAPTING TO CHANGE: VISION We create solutions on how to adapt and perform our business under constantly changing conditions. Being a trustworthy, life & nature conscious and innovative company in oil industry. DURABILITY: We maintain to stay durable and keep our energy at the highest level to reach high performance VALUES: standards even under formidable circumstances. FORESEEING: We consider the longer term, see the big picture beyond the current affairs and make consistent TRUST predictions about our company’s sustainability to be prepared for the future.
We gain trust with our honesty, accuracy and ethical business practices..
MUTUAL TRUST: We act clear, honest and transparent when we do business). We develop mutual benefit relationships and partnerships based on trust, respect and common success..
ETHICAL BUSINESS PRACTICES: We own and pattern SOCAR Turkey’s values and ethic codes in each of our tasks. We encourage everyone to practice these values and codes.
TRANSPARENCY AND CONSISTENCY: Our statements are consistent with our acts. We share our opinions clearly and to reach effective results, we call others to do the same. We include individuals to our decisions and plans who can be effected by those. We care the information to be accessible, understandable and tangible.
HONEST FEEDBACK: We design business oriented feedback processes. We contribute to others’ achivements by providing constructive and punctual feedback.
11 12 STAR RAFİNERİ A.Ş. MISSION, VISION AND VALUES
PERFECTION IN PRACTICE: COMPREHENSIVENESS What ever we do, we try to achieve the best. We act professionally and try hard to be perfectionists at We are conscious of our need of diverse ideas, diverse strengths and diverse experiences implementation phases. If we are mistaken we acknowledge and find solutions to avoid making the for our company’s success. We follow the diverse points of view and encourage people to same mistakes. We share our responsibilities clearly to work with efficiency and coordination. collaborate and contribute to reach the mutual goals.
ONE TEAM: PRODUCTIVITY We make internal collaborations and encourage effective teamwork in between groups, We focus on development and use our time and resources ideally. We also use the most effective and functions and teams to obtain results. productive processes.
SHARING AND COLLABORATION: SIMPLICITY: We share our know how and important information proactively with our colleagues to We make effort to simplify and improve our business processes, procedures and operations by obtain productive results. We ground on the company’s best interest rather than the improving ourselves and getting use of the best practices. individual gains. RIGHT USAGE OF RESOURCES: APPRECIATING THE DIVERSITY: We strive to discover and apply safer, better, faster and more cost-effective ways to deliver effective We perform better in a dynamic work environment thus we collaborate with our partners end results. We make a point of using our resources in the most effective way and doing businesses with diverse points of view, experiences and ways of working. We tend to look through worthy of our energy, time and funds. the widest perspective when sharing our ideas, providing solutions, making decisions or planning our strategies. PERFECTION IN PRACTICE: What ever we do, we try to achieve the best. We act professionally and try hard to be perfectionists at PASSION implementation phases. If we are mistaken we acknowledge and find solutions to avoid making the same mistakes. We share our responsibilities clearly to work with efficiency and coordination. We’re committed to our work both with our hearts and minds. We work with strong sensations which add significance to our daily routine. We welcome new challenges as LIABILITY well as the opportunities with pace, high energy and enthusiasm. We bear responsibility to our shareholders, clients,, colleagues and society. We lead the drive for COMMITMENT: creating a safe, trustable and sustainable environment where we operate. We own what we do and We are strongly committed to our company goals and support them take personal responsibilities for our actions. We deliver our promises and fulfill our commitments.. with our way of working. OWNING: ENTHUSIASM AND DESIRE FOR PERFECTION: We are conscious of the impact of our actions and decisions on people, environment and society. We We continuously proceed forward and make progress. We use our motives and own our business, act responsibly and attach importance to results. commitment to evoke, engage and encourage others to reach perfection. We embrace enthusiasm to find new and ground breaking ideas as well as to question and break non SAFETY IS IN THE ESSENCE OF EVERYTHING WE DO: functional routines and rituals. Everything we do is based on safety and we take personal responsibility for the safety of ourselves and our environment. We acknowledge health and safety as our priorities and we never make any TARGET ORIENTEDNESS: concessions. We ensure our business to be coherent with our team’s targets and objectives and to support our company’s vision. DELIVERING ON PROMISE: A PERFECT PLACE TO WORK: We deliver our promises and fulfill our commitments. We give confidence over challenging We support our workplace to be appealing and encouraging to work. We celebrate gains commitments as well; we work as hard as possible to keep our word. and achievements and share with others.
13 1214 STAR RAFİNERİ A.Ş. INTEGRATED MANAGEMENT SYSTEM
STAR Refinery aims to execute, maintain and continuously improve all its business processes and activities in accordance with legal and Total Quality Management necessities
STAR, purposes to manage all of its operations in a qualified, efficient, effective and sustainable way. Thus, STAR conducts its efficiency, sustainability, performance and effectiveness oriented operations in Total Quality Management field within the scope of Integrated Management System.
In line with the management system standards’ necessities, Star Refinery started Integrated Management Systems configuration as of 2017:
ISO 9001: 2015 – Quality Management Systems ISO 14001: 2015 – Environment Management Systems OHSAS 18001: 2017 Occupational Health and Safety Management Systems ISO/IEC 27001:2013 – Data Safety Management Systems
Integrated Management System was built up by instilling Total Quality Management culture, ensuring the adopting of the process, risk and opportunity based approach, compatible business processes, encouraging continuous improvement and contribution.
GENERAL CONDITIONS Within the scope of Total Quality Management, following training categories were carried out in the set up phase of Integrated Management System :
Raising Awareness Training Implementation and Documentation Training Risk Management Training Internal Investigator Training Head Investigator Training Training of the Trainer
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A new hired STAR employee, receives an Integrated Management System training, within the
scope of Orientation Training Program given by Quality Assurance Department.
Star, aims to raise awareness of Integrated Management Systems among all of its
employees.
2017 – 2018 Process Based Integrated Management Systems targets
main topics are listed below:
Specifying Mission, Vision and Corporate Values
Announcing Integrated Management System Policy
Establishing Document Management System
Defining Business Processes
Composing of the Processes and Operations Defining Documents
Determining the Scope of Integrated Management System
Defining and Socumenting the Risks and Opportunities, Specifying
Their Strategies
Defining Process Based Key Performance Indicators
It is planned that Integrated Management Systems will be certified in accordance with ISO 9001, ISO 14001 and OHSAS 18001 standards, by authorized accredited third parties until the end of 2018.
In line with the necessities of ISO 27001 standard, installation-oriented actions has been taken and certification was set to be the mid term priority.
Following the establishment of Integrated Management Systems; respective actions and training organizations will continue to conduct, maintain, review and improve the system.
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ABOUT SOCAR SOCAR VALUE CHAIN
SOCAR, State Oil of Azerbaijan Republic, is established in 1992 to utilize Azerbaijan’s oil and gas EXPLORATION PRODUCTION REFINING reserves. Owning and operating the oil and gas resources in Caspian basin; the company is one of the Absheron Azeri Chirag Deep Water Gunashli Neftchala Gas Processing Facility most well-established and prestigious energy companies of the world. Bulla Deniz Bahar Gum Deniz Pirsahhat Haydar Aliyev Oil Refinery Umid, Zafar Binegedi Ramany STAR Refinery Representing Azerbaijan’s deep rooted experience in oil production dating back to 19th century; Mashal Kurovdagh Shah Deniz SOCAR is responsible of carrying out the duties of exploration, research and development of oil and Shafag Kursengi ve Garabaghli Surakhany Asiman Mishovdagh Kelameddin South – West petrol fields in Azerbaijan; production, processing and transportation of oil, gas and gas condensate, Babek Muradkhanlı, Jafarli ve Zardab Gobustan selling of oil and petrochemistry, selling of gas in domestic and foreign markets and purchase of Zigh Hovsan industrial and natural gas for the country.
SOCAR has a wide range of operations in oil and petro-chemistry industries in Azerbaijan, including PIPELINES MARKETING OF OIL PRODUCTS PETRO-CHEMICSTRY land and sea basins: Baku – Novorossiysk Oil Azerigaz Production Union Azerkimya Productio Union Research, exploration and processing of oil and petrol fields Pipeline SOCAR Energy Ukraine Petkim Production, processing and transportation of oil, gas and gas condensate Baku – Supsa Oil Pipeline SOCAR Georgia Gas SOCAR Carbamide Baku – Tbilisi – Ceyhan Oil SOCAR Georgia Petroleum SOCAR Polymer Selling of oil and petro-chemistry in domestic and foreign markets Pipeline ( BTC) SOCAR Petroleum SOCAR Methanol Wholesale and retail purchase of natural gas South Caucasia Natural SOCAR Petroleum SA Romania Gas Pipeline (SCP) SOCAR Trading Dubendi Terminal SOCAR owns operations with 23 legal entities and 4 non-corporate entities; including 3 production Kulevi Terminal unions, 1 oil and 1 gas processing facility, 1 deep water jacket facility, 2 trusts and 1 institution. Railway Transportation
19 20 STAR RAFİNERİ A.Ş. ABOUT SOCAR TURKEY
SOCAR Turkey; is the foremost representative of Azerbaijan and Turkey’s economic cooperation which increasingly gains power and efficiency.
As being one of the most well-established energy companies of the world; SOCAR (State Oil of Azerbaijan Republic) started a powerful strategic partnership between two countries by acquiring Petkim in 2008. SOCAR Türkiye Enerji A.Ş. (SOCAR Turkey) was established on 30th December 2011 to perform SOCAR’S operations in Turkey. SOCAR Turkey’s investment plan in Turkey is inclusive of the largest scaled investments in country’s history.
SOCAR Turkey rises on the grounds of Turkey and Azerbaijan’s deep rooted brotherhood and fellowship. As Turkey is one of the most important countries among SOCAR’s global operations, SOCAR Turkey implements an approximate of 19,5 billion US Dollar investment plan based on the confidence in Turkish market’s potential in which SOCAR takes place with powerful ventures, country’s future and steady growth.
Within the scope of “Refinery – Petro-chemistry- Energy – Logistics – Distribution”, prior to completion of investments; SOCAR Turkey’s ultimate objective is to turn Aliağa Peninsula into one of Europe’s top production forces by putting value added chain –Crude oil ending up transforming into a product - into practice, within the scope of aggregation model.
Operating with incorporated companies Petkim, Star Refinery, Trans Anatolia Natural Gas Pipeline (TANAP), Petlim, Petkim Wind Power Plant ( Petkim RES), SOCAR Distribution, SOCAR Warehousing; SOCAR Turkey aims to be one of three major holdings of Turkey and to become one of the largest production powers of the country.
21 22 STAR RAFİNERİ A.Ş. ABOUT STAR REFINERY
Being one of SOCAR Turkey’s investments in the Aliağa Peninsula, STAR ( SOCAR Turkey Aegean Refinery) Refinery is the most critical investment of refinery - petro-chemistry – energy - logistics - distribution integration and SOCAR Turkey’s value chain. Having the capacity of processing 10 million tones of crude oil annually, STAR Refinery has the flexibility to process various types of crude oil in between 28-36 API.
Qualified for the certification of Strategic Investment Incentive as a first in Turkey, Star refinery was built by an international consortium constituted of Técnicas Reunidas (Spain), İtalyan Saipem (Italy), GS Engineering (South Korea) and ITOCHU (Japan). Agreements with these leading companies were signed in 2013. Over 3000 engineers from 14 countries worked in the construction, in total 19.500 employments were provided in the peak period. Being the first refinery established since 1984, STAR Refinery has the feature of being the biggest investment of private entrepreneurship in Turkey. STAR Refinery also focuses on the strategic products in the direction of Turkish economy and industry’s requirements. STAR Refinery is going to produce naphta, xylene, reformat which are substantial raw materials for petro-chemistry industry and also diesel, jet fuel, LPG and petroleum coke etc. products which constitute important items of current deficit; thus provide 25% of our country’s refined oil products requirement. Thus, our country’s foreign source dependency is going to decrease and 1,5 billion dollars will be contributed for narrowing of current deficit. STAR Refinery’s total project cost is 6,3 billion dollars. 3,3 billion dollars of total project finance cost was covered by the loans received from international credit agencies; also the remainder was covered by the investors (SOCAR and Azerbaijan Ministry of Economy). Project financing has the feature of being the largest and longest term loan agreement of Turkey in terms of loan extent and term. Financing of the project, defined as one of the largest oil and gas project financing operations of Europe, Middle East and Africa (EMEA) region of 2014, also had collected 3 awards out of 4 nominations among the financings in Turkey in “Bond & Loans Awards” event held by Global Financial Conferences annually.
Besides the necessary permits taken in compliance with Turkish Environmental Regulations and Environmental Impact Assesment approvals in the establishment phase, International Environmental and Social Impact Evaluation Study has also been conducted. STAR Refinery, designed with an economically applicable and environmentally sustainable ultimate cutting- edge technology, carries out its operations pursuant to Turkish Environmental Regulations, International Finance Corporation (IFC) and International Performance Standards on Environmental and Social Sustainability.
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TECHNICAL INFORMATION PRODUCTION PLAN
Capacity : 10 million tons/year (214.000 barrels/day) Amount Category Product (Thousand tones / year) Configuration : High Low sulfurous diesel 4.800 Motor fuels Jet fuel 1.600 Transformation Refinery Complexity : 9,0 NCI LPG 320 Crude Oil Processing Gap : 28-36 API Raw material for Light Nafta 1.600 petro-chemisrty Reformat and mixed kslien 1.000 Capacity of Warehousing : 1.630.000 m3 Petroleum coke 700 Other Sulphur 160 Investment Worth : 6,3 billion USD
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27 28 STAR RAFİNERİ A.Ş. MILESTONES 2008 09 10 11 12 13 14 15 16 17 18
2.860 decares Environmental Feasibility was FEED In Agreements Agreement for STAR Refinery Large part The first power The first flow of field was Impact completed. process was December, with four leading project financial financing of heavy and phase was of crude oil was assigned to Assessment Pre-engineering completed. STAR companies loan was signed. was also super heavy completed delivered from STAR Refinery, (EIA) report design contract Construction Refinery (Technicas STAR Refinery awarded as equipments of and the first Azerbaijan. which was came out as and FEED - Front started on obtained the Reunidas - had collected 3 the “Refinery Star Refinery pipe was Initial start-up of owned by Petkim positive. End Engineering 25th October. certification Saipem - awards out of Financing Deal was launched engaged. the first compressor, previously. Design package In November, of Strategic GS Eng - 4 nominations of the Year” in the field. initial vapor blast agreement were EPC Investment Itochu) which among the and “Global to refinery lines, signed. Licence (Engineering, Incentive undertake EPC financings in Refinery initial boiler ignition, was taken out. Procurement, as a first in (Engineering, Turkey in “Bond Project of the demineralized water International Construction) Turkey. Procurement, & Loans Awards” Year” by 3 production, ESIA practices process was Construction) event held by world - famous ignition of Flares were started. started. phase, were Global Financial organizations. was occurred. STAR signed. ESIA Conferences Refinery officially report published. annually. inaugurated in October. By the end of 2018, commissioning was completed substantially.
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Before operation; 80.000 ton crude oil necessary for the crucial production STAR REFINERY test, was delivered to refinery with 244 m long Absheron tank. Refinery’s initial raw material was Azeri light IN FIGURES oil coming from SOCAR’s homeland Azerbaijan. 54kV power supply was powered, subsequently the main station and 13 sub stations were successfully powered.
5400 km instrument cable was installed. STAR Refinery Quality Control Laboratory also started working and accredited from 96 test methods 3200 km electric cable was installed. by Turkish Accreditation Agency ( TÜRKAK) in terms of being convenient of efficiency, employee
388.200 m3 concrete was used. competency and technical conditions according to Laboratory Quality Management System’s “TS EN ISO/IEC 17025 Standard of General Conditions for Experiment and Calibration 76.000 tons steel was used. Laboratories’ Competence”.In this context, all 97 parameters, those were planned to be 55.000 tons above-ground pipe installed. included in the accreditation, were performed under the observance of inspection team and technical requirements including competency of laboratory staff, verification and uncertainty 1.045.000 m2 paint was used. of measurement were reviewed. STAR Quality Control Laboratory became the first laboratory 72.000 tons equipment was installed. passing this inspection and become entitled to receive Accreditation Certificate by proving its 35.000 tons of tank was installed. international competence in all parameters.
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35 36 STAR RAFİNERİ A.Ş. HUMAN RESOURCES MANAGEMENT
Star Refinery believes human resource is the In this sense, placement of the right keystone of a successful corporate structure. employee to the right position becomes Based on this point; STAR Refinery aims to crucial and enables to build a strong, enrich and carry the human resource forward. motivated team also bonded with other members and company. Human Resources Department completed To reach this aim, STAR Refinery focuses on hiring the majority of the workforce by forming a well-raised, innovative, open to December 2018 to have a successful change, team player, skillful, energetic, dynamic outcome and start operating in the human resource also having a potential to commissioning phase, by selecting improve themselves as well as the work and operators, technicians and engineers embracing the universal ethic codes and appropriate for the positions and corporate values. assignments with tests and interviews especially designed for this recruitment SOCAR Turkey’s expectation is that all employees process. should assure to perform all work processes successfully, safe and responsibly by using their knowledge, skills and expertise within the STAR Refinery believes that employees scope of SOCAR Turkey’s fundamental values are the key factor in building and of transparency, mutual trust and perfection in maintaining relationships based on trust and respect with government entities, practice. neighboring communities, providers and other shareholders. Therefore; employees, already been selected among technically and professionally skilled candidates, are provided career progression programs they require, such like career development, personal growth, leadership development.
STAR Refinery undertakes to provide equal employment opportunities to all its employees in compliance with the legal legislation. Age, gender, race, ethnicity, religious belief, disability or marital status related discrimination is not allowed among the employees.
Forced labour or child labour are not accepted in STAR Refinery; prime contractor and sub contractor companies are expected to adopt this principal as well. In addition, it is guaranteed by agreements that product and service suppliers of STAR Refinery does not use forced labour or child labour.
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EMPLOYEE PROFILE TRAINING AND In the operation phase, STAR Refinery’s number of employees is going to reach to IMPROVEMENT To manage, follow-up and report 1.100, involving approximately 650 technical staff and 450 engineer, management and all training related activities, an administrative staff in total. To utilize the human resource in the most electronic infrastructure called efficient and productive way, STAR Refinery SOCAR Learning Center was set up. In the construction and installation phase, number of total workforce reached supports its employees’ personal and 120.000 hours of training has been approximately to 10.000, as the sum of prime contractor that employing 3.000 engineers professional growth in line with their career from 14 different countries, sub contractor and employer STAR Refinery’s employees, maps, in accordance with company’s targets provided in STAR Refinery up to the during the project. and strategies. present. Besides OHS, trainings on 911 different issues in personal and As a result of considering training and professional growth categories were Total number of employees: 19.500 (In the peak period) improvement as an investment in company’s provided to hundreds of employees in most important resource, STAR Refinery Number of employer’s employees: 1.100 2.030 groups. Number of prime contractor’s employees: 700 person creates a professional work place and Number of sub contractor’s employees: 18.219 person (In the peak period) career improvement opportunities and Number of personnels employed from Aliağa and other counties of İzmir contributes to the progress of its employees (Total of employer, prime contractor and sub contractor): 6.400 (STAR: 360) with multiple training programs. Within Total number of female employees: 576 (STAR: 113) this scope, STAR Refinery provides career OHS-E 26% Total number of disabled employees: 76 (STAR: 15) development and personal growth trainings to its employees in STAR Refinery Training Center which was completed in 2017. STAR Technical Refinery Training Center has the capacity of Development White Collar Male Primary Education 40% 462 985 2 having 500 attendants in 12 classrooms at Blue Collar Female Senior High School 636 113 272 once. Grand Total Grand Total Associate Degree 1098 1098 468 Bachelor’s Degree 311 Personal growth Master’s Degree 45 9% Grand Total 1098 System development 1% Orientation 3%
19.500 TOTAL NUMBER OF EMPLOYEES (In the peak period)
INTERNAL RECOMMENDATION AND COMPLAINT MECHANISM
In STAR Refinery, an internal recommendation and complaint mechanism is available which allows all employees -including primary and sub contractors’- to transmit their work related issues by e-mail, phone or personally, also by name or anonymously.
Within the scope of this mechanism; recommendations and complaints are recorded and conveyed to related departments. Following the investigation of recorded complaints, complainant is notified on the action plan and follow-up process.
39 40 STAR RAFİNERİ A.Ş. OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT
STAR Refinery aims to prevent all kinds of incidents threatening the health and safety Total working hours has been reached to In the scope of this system; OHS of its employees and neighboring communities. STAR Refinery attaches priority to 137 million man-hours as of December Performance Evaluation Auditing Program Occupational Health and Safety (OHS) Management among all other business 2018. Total recordable incident rate (TRIR) (SHAPE) was consituted with the purpose has been actualized 0,260 per 200.000 of measuring and improvement of processes; based on this, provides continuous and efficient prevention for avoiding man-hours from the beginning of the occupational health and safety during incidents and minimising possible effects on human health and environment during project. As STAR Refinery believes all construction phase. SHAPE enables to each phase; including pre-construction, construction, installation, engagement and accidents can be prevented; it is aimed indicate fields of improvement in terms of operation; within the scope of its OHS - E Policy. to set this rate to zero. To put this aim occupational health and safety. Continuous into practice and ensure all employees’ improvement is aimed by weekly controlling Construction and engagement operations are being monitored by more than 400 OHS occupational health and safety; OHS programs, detection and execution of personnels from primary and sub contractor employees. Besides these employees Management System was created under corrective and preventive operations and specialized in OHS, specialists experienced in jetty work, lifting operations, mechanic the guidance of SOCAR Golden Rules, monthly follow-up reports in ongoing work, electric work, traffic and radiography also support construction and installments which is based on the learnings through construction and startup operations in to be carried out safely. industrial experiences. different stations.
For the operation phase, a team of 95 people has been organized within the scope of four disciplines (OHS, Process Safety, Environment and Fire-fighting and Rescue) in line with international standards. 10 GOLDEN RULES
In STAR Refinery, responsibility of safe work environment maintenance does not belong only to OHS specialized teams; it is shared equally by all employees; therefore to preserve this culture intensive training programs are provided to all employees.
WORK ROAD ENERGY ENTERING INTO WORKING Besides the basic OHS trainings all employees receive from the very beginning; AUTHORIZATION SAFETY INSULATION CLOSED SPACES AT HEIGHT additional trainings on job specific subjects (Closed spaces, working at height, load lifting operations, driving vehicles safely, leave days, emergencies, signaller training etc.) are also provided and periodically repeated.
SIMULTANEOUS Constituted for educational purposes, STAR Refinery Traning Center provides LOAD LIFTING LOAD CHANGE PERSONAL OPERATIONS LIFTING OPERATIONS MANAGEMENT WORK PROTECTIVE a 80 hour OHS training program (64 hours technical training, 16 hours compulsory EQUIPMENT ( PPE) training required by the legislation) in accordance with the fields of operation within. 274.012 hours of training has been provided in the refinery since the construction started.
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Employees and teams who show successful practices in work safety are awarded monthly Regulatory Compliance Human Life Protection Management’s Leadership and Responsibility Information and Documentation to remark occupational health and safety and to raise awareness of following the work Risk Evaluation and Management Social Responsibility Operational Responsibility Customers and Productions safety rules. STAR Refinery top management also attend award ceremonies and share Constructor and Supplier Management Performance Follow-up and Development Efficiency, Training and Behavior Incident Analysis and Prevention their messages concerning OHS. Change Management Emergency Preparedness and Crisis Facility Design and Construction Management Environmental Evaluation and Management
In 2017, 120.070 employees received 274.012 hours of training in the refinery. In STAR Refinery, industrial updates are Demonstrations are also organized to followed up to improve process safety with raise awareness of actions to be taken the best applicable techniques. Possible in case of emergencies. Within the Simultaneous commissioning and constructing operations require the risk system based risks are spotted at design scope of Emergency Management Plan, demonstrations concerning the possible assessment to be applied with Simultaneous Operation (SIMOPs). This practice is and engineering phases and scientific emergencies during start up and operation also effective to raise risk awareness of employees and eliminate risks. Simultaneous precautions are taken to minimize the phases are carried out and methods operations are consulted in daily SIMOPs meetings and controlling is carried out by detected risks. Pre-Start up Safety Reviews of response to possible scenarios and work permit system. Related procedures are carried out for permissable operations. (PSSR- Reviews enabling to control the emergency communication system are facilities’ compliance with unique design and tested. In addition to this system and methods, “SAFE: SOCAR Aims for Efficiency” program working principles in terms of process safety) which reflects SOCAR Turkey’s corporate OHS-E vision in 16 core principals and forms is one of these precautions. the basis of all OHS-E management systems’ of group companies, is also carried out. These principals are:
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SOCAR SAFE 02-01-03 February 2017
AIMS Health, Safety & Environment FOR (HSE)Politikası Policy EFFICIENCY
OCCUPATIONAL SOCAR Turkey is committed HEALTH The health and safety of our to a culture of adopting employees, contractor’s employees and OHS-E industry best neighbours is vital to us. practices which is SAFETY We value safety as a license foundational in achieving to operate. We do not work without providing safety, environmental work safety!
and occupational health ENVIRONMENT We are loyal guards of our
excellence. naturalÇEVRE resources. We lead the way to deliver a healthy environment for future generations. bekçileriyiz. Gelecek nesillere temiz bir çevre Zaur Gahramanov OUR KEY PRINCIPLESbırakmak için liderlik yapıyoruz. Zaur GahramanovCEO MesutGenel İlter Müdür CEO SOCAR Türkiye GeneralSTAR Manager Rafineri As SOCAR Turkey, we believe: SOCAR Türkiye STAR Refinery All incidents can be prevented
ToTü workm kazalar in STAR engellenebilir Refinery, . commitment to our OHS-E principles is a must
Environmental
responsibilities are essential forönem our veririz.success.
Every single employee and contractor is responsible for politikamızdan sorumludurlar. our OHS-E policy regardless of their status and rank
We deliver on our promises
Compliance with our OHS-E management system and our commitment to this policy ensure OHS-E excellence.
HEALTH, SAFETY & ENVIRONMENT POLICY
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Frequency rate of Industrial Accidents with OHS PERFORMANCE DATA Lost Time (LTIF) 12 months, 200.000 Man Hour) 0,035 5.000.000 0,030 4.000.000 Year of 2018 4.000.000 0,025 OHS Performance Data December Cumulative Total 3.500.000 3.000.000 Man hour 2.018.854 39.480.853 136.791.289 0,020 2.500.000 0,015 Man hour Without Lost Time 1.323.628 1.323.628 1.323.628 2.000.000 1.500.000 Number of OHS Field Checks 96 0,010 424 3.879 1.000.000 0,005 Number of Safety Observation Cards 0 34 1.450 500.00 0,000 0 Number of Unsafe Situations / Behaviours 142 9.640 44.354 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Man - Hour - Monthly 3,995.395 3,926.701 4,623.505 3,633.191 3,465.733 3,641.201 3,016.545 3,085.099 2,721.696 2,436.867 2,915.400 2,018.854 TRIR - 12 Months Total Number of Near Miss / Unsafe Situation / Behaviour 0,011 0,011 0,015 0,015 0,015 0,012 0,016 0,016 0,021 0,022 0,023 0,030 147 9.740 46.185 TRIR - Target 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 0,000 Number of OHS Audits 4 11 86 Total Rate of Recorded Industrial Accidents (TRIR) 12 months, Number of Emergency Drills 3 54 344 200.000 Man Hour)
OHS Trainings Man Hour 11.910 260.813 831.556 0,350 5.000.000 OHS Trainings per 200.000 Man hour 0,59% 0,66% 0,61% 0,300 4.500.000 Frequency Rate of Industrial Accidents with Lost Time (LTIF) 0,099 0,030 0,056 4.000.000 0,250 3.500.000 Total Rate of Recorded Industrial Accidents (TRIR) 0,297 0,101 0,260 0,200 3.000.000 2.500.000 0,150 2.000.000 0,100 1.500.000 1.000.000 0,050 500.000 0,000 0 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 3,995.395 3,926.701 4,623.505 3,633.191 3,465.733 3,641.201 3,016.545 3,085.099 2,721.696 2,436.867 2,915.400 2,018.854 Man - Hour - Monthly 0,112 0,104 0,100 0,097 0,087 0,077 0,084 0,078 0,082 0,085 0,093 0,101 TRIR - 12 Months 0,300 0,300 0,300 0,300 0,300 0,300 0,300 0,300 0,300 0,300 0,300 0,300 TRIR - Target
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49 50 STAR RAFİNERİ A.Ş. ENVIRONMENTAL MANAGEMENT
Being the pioneer of making environment- Not only as legal obligations; STAR Refinery sensitive investments, carries out environmental and social ENVIRONMENTAL Not considering the environment impact management practices within the IMPACT MANAGEMENT protection expenses as a burden; making scope of Equator Principals, Union Acquis these expenses for leaving the future and IFC Performance Standards, in all Within the scope of Environmental generations a more comfortable and viable business processes. By this approach, STAR and Social Impact Evaluation which is future. Refinery’s socioeconomic and environmental based on the performance standards Actualizing sustainable progress in a risks and potential negative impacts were of international finance companies, sustainable environment. specified within the scope of STAR Refinery ISO 14001 Environmental Management Minimizing the potential negative Environmental and Social Impact Evaluation System and the best business practices, environmental impacts resulting from Study. Also, management principles were it is aimed to manage environmental operations; using best available technologies defined to minimize these risks and impacts. impacts of STAR Refinery’s business and efficient practices. processes efficiently. In this scope, an Being prepared for emergencies Environmental Management System by carrying out Environmental Risk Besides Occupational Health and Safety, was developed to specify, evaluate and Management in the most correct way. Environmental and Social Impact minimize the environmental risks. Management concept is STAR Refinery’s priority in the carrying out process of STAR Refinery adopts the concept of STAR Refinery prepared management plans business targets. It is expected that environmental sustainability, that is also concerning a number of basic elements to all employees should follow these one of the main principles of sustainable minimize environmental impacts. Assigning Environmental and Social Management progress. This concept of Refinery’s special tasks and responsibilities to principles -including contractor is based on carrying out continuous employees, taking necessary precautions companies’ teams- in a determined, improvement aimed practices and according to environmental impact careful and uncompromisingly manner. performing the one with the highest level evaluation, documenting the improper Also, all contributor contractor companies’ among the national and international situations systematically by regular field environmental and social management necessities. In this direction; conducting checks and resolve with improvements, practices are being monitored. of the operations sensitively by efficient periodic follow-up, reporting and auditing are usage of natural resources and energy, among these elements. STAR Refinery, as being aware of its effective management of all kinds of responsibilities to today’s world and future emission and constant follow up is among generations; has adopted a sustainability- company’s corporate objectives. As a part of Environmental Management conscious way of working and making System, STAR Refinery and primary production. STAR Refinery also adopted Principles composing the general contractor have been formed environment being “respectful to life, sensitive to nature” framework of STAR Refinery’s teams constituted of environment as a corporate value and integrated this to environmental vision are given on the professionals. These employees all business processes. Environmental and right side: are following up the environmental social impact system and processes were requirements of the project carefully; in established within the scope of this value. the scope of Environmental Management and Monitoring Plans.
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STAR Refinery’s main Environmental Management and Monitoring Plans include the following thematic fields:
Waste Management Hazardous Waste Management Waste Water Management Management of Dust and Other Emissions Monitoring the air quality Resource Productivity Management Management of Dumping Grounds Monitoring the Sea Quality and Sea Sediment Marine Bio-diversity Management Inland Flora - Fauna Management
BEST AVAILABLE TECHNIQUES In STAR Refinery’s engineering design phase, many “Best Available Techniques” (meaning economically applicable and locally supplied -available- and their way of execution) have been grounded on to provide the whole environment to be protected in the best way possible.
Among these techniques considering and planning many regulations reducing the fugitive emissions including volatile organic compounds which can reach to the atmosphere, the following examples also ranked:
Withdrawal of volatile organic compounds which will be formed during the filling process in refinery jetties, by Vapor Recovery Unit. To dispart hydrogen sulphide from waste gas by cleaning with amine in Amine Regeneration Unit and utilize the waste gas to be used in refinery fuel gas system
Using natural gas instead of fuel oil, enables to avoid threats concerning air pollution and to keep refinery-sourced SOX and NOX emissions in the minimum level. The predicted impact of the project in terms of air pollution is below the limit values of long term air quality that is defined in the Air Quality Evaluation and Management Regulations of National Environmental Legislation.
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Rehabilitation Operations: ENVIRONMENT MANAGEMENT OPERATIONS Rehabilitation have started in Çaltılıdere ve Güzelhisar D dump sites, which were used for dumping construction remains. Following the soil compaction, topographical collocation and spreading the Waste/ Waste water Management vegetable soil operations in 2013 - 2014; revegetation in the field had been observed. Successful Domestic waste water which was gathered from fields offices, continued to be disposed forestation of Güzelhisar D field in cooperation with Ege Orman Foundation is also beholded. Annual of in Petkim Waste Water Treatment Facility. Waste water gathered from project field maintenance is being continued. was also disposed of at certified facilities through licensed companies. In terms of waste management, it was continued to work with licensed facilities Forestation opoerations: authorized by the Ministry, for hazardous / non-hazardous waste disposals During the field organizing phase before the construction; in return for 5.000 trees which were cut and these facilities also were audited by project environment teams. down under the control of İzmir Regional Forest Directorate; 21.000 trees were planted to Haydar Aliyev Forest by SOCAR beginning from 2011
Energy and Water management Operations for Preserving Marine Life: For effective usage of energy, energy-efficiency campaigns were conducted. Parallel to jetty construction; STAR Refinery has started greater marine animals monitoring 640.000 m3 water re-used for the pipeline cleaning with pressure or street sprinkling. program including sea turtles and marine mammals within the scope of Marine Biodiversity Management Plan.
Soil Management : As a part of the program, a special traning was given to STAR Project employees by the Qualified vegetable soil coming from STAR Refinery excavation site, was used to regenerate academic staff of Dokuz Eylül University Marine Sciences Institute, Aliağa Güzelhisar dumping grounds. Also; the rest of the stored soil was continued to be used about the marine mammals observed in the zone. OHS-E teams of STAR Refinery, primary for greening the chamfers. In this practice, after vegetable soil spreaded on to chamfers; seeds contractorand sub contractor were informed on the marine biodiversity in Nemrut Bay and also blended with water by using “hydro-seeding” method and sprayed on for greening. methods and tools of marine observation. During framework constructions; before piling operations start, it is checked every morning for Air Emissions Management: 15 minutes that if dolphins are in the area. In case dolphins are observed; construction pauses Regular maintenance and air filter change had been done concerning the equipments causing and due precautions are taken until they leave the area. This is one of the tangible objectives of emission such like heavy equipments in the construction field, generators and also project this program. vehicles. In the scope of settled dust management, street sprinkling had been done every two days especially under dry air conditions. UK originated Aquatic Engineering (UK) actualized the set up of silt curtain that serves as a barrier against sediments and suspended solids potentially originated from construction, as Pollution Preventing Operations: one of the precautions STAR Refinery took to protect marine ecosystem. Usage of spill kits and drip trays were provided to avoid all kinds of oil or chemical spill or leaks which may reach to groundwater or the sea; and also cause land pollution. Within the scope of Marine Biodiversity Management Plan, regular monitoring is pursued by Dokuz Eylül University Marine Sciences Institute; also STAR Environment Team makes marine observations every two days.
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ENVIRONMENTAL MONITORING OPERATIONS
STAR Refinery facility takes part under the scope of Environmental Impact Detection of sea turtles’ potential breeding sites, marine mammals (seals and dolphins), Assessment (EIA) Regulations’ Appendix - 1 List, Article 1.a, Waste and Chemical firm ground living creatures , fish and invasive species, marine sediment quality, detection Industries which was issued in the Official Gazette and effectuated after then. and monitoring of heavy metal deposition through mussels and more of the same operations According to the regulations, EIA reports were prepared for company’s operational are included in the context of the multidisciplinary monitoring program based on marine processes and related reports were approved by Ministry of Environment and chemistry and biology. Monitoring, will be repeated once in six months until the end of jetty Urbanization Turkish Republic between the years of 2009 and 2014. The refinery’s constructions. Again, in line with the related plan, a specific training was carried out to STAR current EIA report was entitled to get EIA certificate as of January 2018. Refinery employees about the sea mammals which are seen in the zone.
Periodic EIA monitoring operations which are based on the elements pledged in Besides the regular inspections STAR Refinery environmental team conducts in the field, the EIA reports, are conducted by ministerially licensed companies and results are during the construction in marine space; potential progression and regressions in seagrass reported to the Ministry on a regular basis. habitats are also being monitored on half yearly basis with support of Dokuz Eylül University and their lepidochronology and buoyage approach. STAR Refinery’s periodic monitoring operations dependent to Environmental and Social Impact Evaluation Study, is conducted by another international firm. In addition, monitoring through satellite imaging was carried out and turbidity measurements were pursued with the devices placed to buoys. Also, to measure the sediment deposition, grade stakes were installed to the bottom of the sea. Soil Analysis: Prior to construction process, field reference study was completed after the analysis of Ambient Noise, Settled dust and PM10: External environment air quality and environmental soil samples taken from the field. During the construction phase, soil analysis studies are noise measurements are carried out by an accredited company since 2015. carried on in the areas considered necessary, as a part of environmental inspections.
Sea Water Quality: Prior to dock constructions, sea water quality reference measurements were carried out at different points and periodic measurements were carried on during the construction ENVIRONMENT MANAGEMENT TRAININGS phase. Sea water general quality criteria analysis were carried out by an accredited laboratory in the scope of related regulations. In addition, turbidity that may be caused by With the purpose of enhancing STAR Refinery employees’ environmental management construction is monitored by online monitoring system. competences; operation based (construction / commissioning) environmental management, spill and waste management trainings are provided. Marine Biodiversity and Marine Chemistry: Studies in collaboration with Dokuz Eylül University Marine Sciences and Technologies In the meanwhile, environment campaigns are being conducted to raise awareness and Institute, involve detection of Posidonia Oceanica’s (an endemic sea plant of ensure following of the environmental standards; concerning the issues of response Mediterranean) detailed coordinates, marking with buoys, gathering of samples and building monitoring stations with vaults. to fuel and chemical spill, waste management including hazardous wastes, filtration of concrete waste water, resource wastes, waste sacks’ color codings, spill kits / stations, energy saving and internal natural resource productivity.
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Within the context of this plan, after key SOCIAL IMPACT shareholders are identified, they are provided SOCIAL IMPACT EVALUATION STUDY to convey their questions, opinions and recommendations to STAR Refinery on a STAR Refinery meticulously observe Social Impact regular communication basis. Shareholder Management Principles which are constituted Participation Plan is updated on regular basis MANAGEMENT for the management of socioeconomic risks and and improved according to regional dynamics. potential negative impacts within the scope of STAR Refinery Social Impact Evaluation Study In the direction of participation, as an essential Regardless of the time operating period takes, large scaled industrial companies interacting with (SIES) in 2013. On the other hand, considering the of ideal social impact management, regular changing dynamics in the region; another Social meetings are organized with shareholders the local community is inevitable in today’s world. These companies act more responsible about Impact Evaluation study conducted by a third for open and continuous communication managing this interaction, while the sustainable progress targets are addressed in the global party in the second quarter of 2018 and STAR and social risks are tried to be minimized by platforms. Refinery’s social risks and impacts readdressed getting feedback on the sensitive matters. On according to current affairs. the matters impacting or having a potential to impact a limited group of shareholders, Receiving interacted shareholder communities’ approval plays a great role in the sustaining targeted shareholders are being informed, of operating uneventfully in the same region for years. This community approval is beyond SHAREHOLDER getting their feedback taken in idea exchange quantitative expression and can not be provided by a certificate/licence; yet it is expressed as focus group meetings. In this scope, 264 local shareholder meetings has been conducted Business Social Licence in the global platform. PARTICIPATION PLAN by this time, including 2 “Public Participation Being a reputable, trustworthy and accessible Meetings” with high level of participation STAR Refinery considers corporate reputation as an indispensable value and carries out company in the eye of its shareholders in and one-to-one meetings with local public practices to protect and enhance Business Social Licence for pursuing its existence with positive the operated region is one of STAR Refinery’s authorities, educational institutions, priorities. Being attentive to conduct a neighborhood representatives, media and interactions for many years. transparent and two-way communication with community representatives, organized by shareholders; STAR Refinery constituted a STAR Refinery and primary contractor TSGI With this approach; STAR Refinery aims to pursue the positive dialog with neighboring Shareholder Participation Plan as a part of IFC Engineering Construction. By this means, local shareholders were included in STAR Refinery’s communities as well as to provide maximum added value to its surrounding community. performance standards. planning and implementation processes of social impact management. In line with this purpose, here are the social impact management actions, plans and mechanisms STAR Refinery builds and carries out to get to know its neighbors, identify their needs and pursue its existence in cooperation with:
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RECOMMENDATIONS AND COMPLAINTS MECHANISM
In addition to Shareholder Participation Plan that is ensuring a transparent dialog between shareholders and STAR Refinery; a recommendation and complaint mechanism was developed for conveying recommendations and complaints concerning STAR Refinery operations. By means of this mechanism, recommendations or complaints can be conveyed to primary contractor’s relevant department or directly to STAR Refinery’s related departments. It is also enabled that every single complaint and recommendation is recorded down and solved immediately.
Owing to this mechanism, almost been used from the very beginning of construction, Star Refinery managed its impacts on time and solved 80% of recorded shareholder complaints up to date since 2015.
SOCIAL INVESTMENT PROGRAM
Besides global sustainable development goals, STAR Refinery aims to contribute to social development considering the socioeconomic and cultural needs of its operational region. Having a great employment and local purchase volume, STAR Refinery created a significant added value for region’s and country’s economy. Based on the SED study in 2018 which was conducted to examine the region’s socioeconomic structure for social investment programs planned to be in operation phase; STAR Refinery already started designing investment programs. In the designing phase of these programs, inline with the participation principle, opinions and suggestions of key shareholders are taken and possible cooperations are planned with the program related shareholder groups. Not only through the projects; STAR Refinery actualizes its social progress goals also by prioritizing local source usage in all business processes.
STAR Refinery bases on “local purchasing” approach in all purchase and logistics processes. During construction phase, the amount of realized purchase within the country is 710 million TL. 93 million TL of the purchase is actualized directly from İzmir. STAR Refinery aims to contribute local suppliers’ and companys’ development by pursuing local purchasing approach in the operation phase.
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. SOCIAL RISK MANAGEMENT
With social risk management, STAR Refinery aims to specify its social and economic risks and their negative impacts; to take necessary precautions for minimizing these effects and to track social performance in all business processes. Towards this aim; social risk management concerning local employment, local purchasing, working conditions, public health and safety continues constantly in all business processes.
HEALTH IMPACT EVALUATION STUDY
Within the scope of social risk management, Golder Associates and International SOS, as third parties, conducted a Health Impact Evaluation Study in Aliağa, that was financed by STAR Refinery in 2017.
The study was conducted as individual shareholder interviews and focus group meetings by 6 experts in June 2017. In 1 week field research, 14 shareholder meetings were carried out, including interviews and focus group meetings.
Owing to these meetings, gathered information on social health was approached within STAR Refinery’s scope of operation; and potential opportunities and risks were specified.
The aims of this proactive study were specifying STAR Refinery’s opportunities to contribute local community’s health, predicting potential impacts of the refinery operations on public, evaluating, determining local community’s general health conditions and specifying volunteer public health projects as corporate social responsibility before the production kick-start. Results of this research was shared with local key shareholders. Concerning the potential projects based on the research, meeting and planning processes still continue.
MANAGEMENT OF WORKING CONDITIONS
Working and accommodation conditions of project workforce were constantly monitored by relevant STAR Refinery teams from the beginning of construction. As part of international standards’ necessities; regular accommodation camp inspections were conducted with primary contractor, processes of employees’ bringing up issues in regular meetings and main contractor’s problem solving were monitored and accommodation facilities’ sufficiency was provided.
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FISHERY ACTIVITIES RESEARCH
Within the context of social risk management, one of the studies STAR Refinery conducted before production phase in 2017 was Retrospective Trend Analysis and Current Situation of Fishery Activities in Aliağa and Immediate Environment Research. This research was conducted by Muğla Sıtkı Koçman University, Faculty of Aquaculture and financed by STAR Refinery.
STAR Refinery adopts being “Respectful to Life, Sensitive to Nature” as a value. With this scientific study, STAR Refinery aimed to detect positive and / or negative impacts’ on fishery activities in Aliağa during construction phase and also to predict the potential positive / negative impacts in operation phase. STAR Refinery is the first company in the region, conducting a research to such an extent.
Within the scope of this scientific research conducted in August 2017, a team of 12, including 4 academists, reached to 171 people who were involved in fishery activities in Aliağa, Çaltılıdere, Yenişakran, Çandarlı, Çakmaklı ve Yeni Foça and conducted a field work through surveys.
In addition to field work, information and documentations –which were thought to be contributive to the study- obtained from related state institutions and organizations and also NGOs, were analysed. Gathered information was reviewed in the context of STAR’s positive/ negative impacts.
Research results indicate that:
In Aliağa, where industrialization gains speed since the beginning of 1970s, fishery activities are no longer one of main sources of living and young generation does not have a tendency towards it. Fishery activities do not provide a regular income as the main source of living also in the region and had lost its popularity. The main reasons behind decreasing fishery activities in Aliağa are inaccurate hunting techniques and poaching. In addition with the reasons above, it is also seen that Private Security Areas which are obligatory to be allocated around coast facilities by Prohibited Military Zones and Zones of Security Law and Legislation, avoid the fishermen to reach productive fishing areas. For this reason, the favorable area for fishing activities were narrowed down; however these prohibited areas form an ideal breeding ground for fish.
As the result of the relevant research, it is confirmed that STAR Refinery does not have a negative impact on the fishery activities in Aliağa. For the sake of corporate responsibility, STAR Refinery shared these research results with concerning shareholders and held consultations on the relevant precautions to be taken to develop this activity. Relevant evaluations and shareholder meetings are currently maintained.
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69 70 STAR RAFİNERİ A.Ş. CORPORATE RISK MANAGEMENT
Within the scope of Corporate Risk Management, The role of Risk Management Unit in STAR Initially, specifying the risks, STAR Refinery aims all strategic, operational, Refinery is to ensure the company reach detection of their sources, financial, compliance, external and other risks to its strategic targets with minimum loss fields of impact, reasons and and opportunities -which are possible to be by following determined procedures and confronted in and out of the company- to be legislation also with other business units. determining of the potential defined, detected, followed up and minimized In this process, this unit determines results are important in risk or ideally eliminated in terms of their potential all potential risks and opportunities to management process. effects on the company and shareholders. enable the company to benefit from the confronted opportunities in the highest Discussing the risks, the following All related company units aim to reach level possible and prepares specific methods are used according to minimum risk level or eliminate the risk by action plans. Facilitates the required risk conditions: taking risk evaluation actions appropriately to coordination to put these actions into Reduction (Fighting against the risk, the requirements of national and international practice, evaluates the result and presents legislation, in line with Star Refinery Risk to top management. controlling) Management Unit’s guidance and coordination. Avoiding (Withdrawing) Transferring Etme (Sharing) The purpose of risk evaluation is to compare risk levels and make potential risks manageable Accepting (Taking the risk) by defining, evaluating, prioritizing, monitoring, Using the opportunities reporting and categorizing to contribute to decision making process according to risk analysis results.
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Vadistanbul Bulvar, Ayazağa Mah. Cendere Cad. No: 109-E, 1D Blok, 34485, Sarıyer / İstanbul T. 0212 305 00 00 F. 0212 305 01 00 E. [email protected]
Siteler Mah. Necmettin Giritlioğlu Cad. No:6/1, 35800 Aliağa / İzmir T. 0232 966 60 00 E. [email protected]