Sustainability Report 2010 Attock Ref inery Limited Vision To be a world class and leading organization continuously providing high quality and environment friendly energy resources and petrochemicals. Mission We will utilize best blend of state-of-the-art technologies, high performing people, excellent business processes and synergetic organizational culture thus exceeding expectations of all stakeholders.
OUR CORE VALUES Integrity & Quality Ethics
Social Learning & Responsibility Innovation
Teamwork Empowerment Sustainability Report 2010
Table of Contents
The Company ARL Environmental Initiatives
CEO’s Message 3 ARL HSEQ Policy 38 Executive Summary 5 ARL Environmental 39 About this Report 6 Initiatives vs. Sustainability Board of Directors 8 ARL Environmental 47 Company Profile 10 Monitoring Results Company Organogram / 11 ARL Enviornmental Plans 49 The Management GRI Environmental 50 ARL Present Configuration 12 Performance Indicators Refinery Inputs and Outputs 13 Ongoing and Future Projects 14 ARL Economic Initiatives
Business Partners Chairman's Business Review 58 CEO Statement of Compliance 60 Stakeholders Identification, Last Five Years Financial 62 17 Dialogue & Our Response Summary Customer Feedback GRI Economic Performance 63 20 about ARL Indicators Product and Service Corporate Targets 2009-10 65 21 Stewardship
Credibility ARL CSR Initiatives Third Party Assessor's 64 Human Resource Policy 23 Statement ARL Social Initiatives 24 Memberships and 69 Vs. Sustainability Business Association GRI Social Performance 30 Feedback Form 70 Indicators Awards & Achievements 72 ARL Social Plans 36
1 Sustainability Report 2010
Chapter 1
The Company
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CEO’s Message
Our business reliability is strongly supported by our six core values i.e., Integrity and Ethics, Quality, Social Responsibility, Learning & Innovation, Teamwork and Empowerment.
Welcome to Attock Refinery Limited (ARL) Hydro Desulfurization unit is also in the 2010 Sustainability Report. ARL experienced pipeline which shall be realized after getting another tough year due to the precarious necessary Government of Pakistan assistance financial and economic state of affairs which to make it feasible project. directly hit the country's petroleum refining As we are emerging from this challenging sector. In spite of the challenging period, our vision is clear to uphold high circumstances, we remained steadfast in our standard of performance. Our business commitment to bring social, environmental reliability is strongly supported by our six core and economic benefits to our stakeholders values i.e., Integrity and Ethics, Quality, Social and people of Pakistan. Responsibility, Learning & Innovation, We are alive to future challenges of products Teamwork and Empowerment. In the light of specifications warranted by environmental these core values, my team is committed to concerns and actively implementing Pre-flash work even harder to provide a healthy and Isomerization projects to enhance the workplace which should have a positive refining capacity and upgrade motor gasoline impact on adjoining communities. quality as well as reduce benzene and The safety of our employees, contractors and aromatics contents respectively. A diesel stakeholders remains paramount and this year 3 Sustainability Report 2010
we transformed traditional emergency play our role in bringing the benefits to many response plan with scenario based emergency more people and will continue to do that in plan to further minimize business continuity ways which reflect ARL core values. risks. In year 2010, we achieved the target of 4.5 million safe man hours without any loss time injury. We also achieved the total accident incident frequency rate (TAIFR) target of less than 5. Compliance with the National Environmental Quality Standards (NEQS) is an important M. Adil Khattak pillar in our sustainability strategy. We November 19, 2010 remained on track and have not committed any violation of the priority parameters throughout the year. Moreover, an in-depth study was also conducted for the compliance with non-priority NEQS parameters. We have also applied to Federal Environmental Protection Agency to grant green industry status to ARL. ARL highly regards the call of the Global Compact to companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, environment and anti- corruption. We have adopted these principles in our day to day business activities. One of the biggest natural disasters in the history of Pakistan that we faced in year 2010 was flood. We responded to that and sent necessary food and household items to the flood affected people of the Punjab and Khyber Pakhtonkhwa provinces by donation. Our employees donated their two days salary to the affected people and two free medical camps were arranged in collaboration with Attock Hospital (Pvt.) Limited and Attock Sahara Foundation. We look forward to another challenging year and to make further progress on social, economic and environmental issues. We will 4 Sustainability Report 2010
Executive Summery information on some of the new projects conceived this year is provided e.g., to achieve Attock Refinery Limited (ARL's) Sustainability green industry status from federal Report 2010 reviews the company's progress environmental protection agency, study the and performance during the year. The compliance level of non-priority parameters summary includes precise and complete of National Environment Quality Standards description of ARL's stakeholders, their needs, (NEQS) for petroleum refineries, indigenous how we key in to comply with their needs and development of Corrugated Plate Inceptor our future strategy. (CPI) and development of a constructed The report is designed as per the guidelines wetland in Morgah Biodiversity Park (MBP). In given in Global Reporting Initiative (GRI-G3), addition to new projects, an update on on- Accountability-1000 (AA1000), Social going projects like NEQS priority parameters Accountability (SA-8000), ISO Management compliance, scenario based emergency Standards and ARL vision, mission and core response exercises, engagement of customers values. and community for the celebration of events Perhaps the most critical aspect of successful like World Environment Day and Safety Week sustainability programs is having active is given. Plantation of more than 10,000 participation in all realms. ARL's social, saplings in and around the Morgah area is also environmental and financial performance for an important achievement of year 2010. the year 2010 is given in detail along with Financial performance for the year 2009-10 information on core and additional GRI was not very encouraging and the company indicators. Just like the previous years, an suffered a loss of Rs. 476 million from its core encouraging update on the ARL short / mid / refinery business, which is due to government long term plans is provided in the report. policy structure for the refineries. However, CSR is not a new concept for ARL and it has after accounting profits from other been part of its core values. Various activities investments, net profit of Rs. 126 million is carried out in this area include, assistance to achieved. The same has been included in the the Government Special School and Pak report while discussing last five years financial Darakhshan, donation to the flood affected data and GRI financial indicators. people of the Punjab and Khyber In order to make the report credible, Pakhtonkhwa provinces, donation of two days statements from the reports of our third party salary, a free medical camp for the flood assessors like ISO14001, OHSAS18001, affected people of Noshehra by Attock ISO9001, ISO/IEC 17025 and financial Hospital (Pvt.) Limited in collaboration with accounts has been reproduced in the last Attock Sahara Foundation, Second Human chapter. Resource conference etc. A detail on all CSR a activities is given in the report. fr ies c Soci al Per o m nce li rmance Our Health, Safety & Environment (HSE) o e
P
L Evonn ir me tal n P rfo
performance in year 2010 compared with last R A Economic Performance year's has improved considerably. An 5 Sustainability Report 2010
About this Report site at Morgah, Rawalpindi encompasses 196 acres area for the plant and 136 acres for Scope residential colony. This report identifies key Attock Refinery Limited (ARL) is dedicated for sustainability aspects of our business of crude sharing information about its sustainability oil refining for production of Liquefied priorities, goals, initiatives and performance. Petroleum Gas, Unleaded Premium Motor Sustainability report aims to provide Gasoline, Solvent Oil, Kerosene, Aviation economics, social and environmental Fuels, Mineral Turpentine Oil, Jute Batching accomplishments, challenges and our Oil, Low Sulfur Diesel, Low Sulfur Furnace Fuel response. The report illustrates ARL Oil, High Sulfur Furnace Fuel Oil, Cutback commitment to good governance, Asphalts, Paving Grade Asphalt and Polymer transparency and highlights the method of Modified Bitumen. recognizing and evaluating the needs, ARL after sales services and business meetings expectations of stakeholder's and providing with customers is being used to identify areas actionable outcome. We communicate our of improvement to fulfill product stewardship performance to our stakeholders through cycle requirements. annual sustainability report. It is our belief that sustainable and stable fiscal Reporting Year and regulatory policies would provide ARL's social and environment performance confidence to investors to meet future data is for the calendar year 2010. demands in a free and open energy market. Economic and financial data correspond to Cleaner fuels and energy efficiency needs to fiscal year July 2009 to June 2010. be encouraged as it benefits both the environment and the economy of country. Information Credibility It is our firm conviction that a safe and reliable Credibility of the information given in the operation by minimization of risks to report is the sole responsibility of ARL safeguard people and property is our top management. All the information provided is priority. Our three layered safety thoroughly checked and confirmed through management system is inculcating safety independent Business Review and Assurance culture among our employees especially by department having documented checks and floor level Safety Stewards to ensure safety in control system. The same is cross verified by action. Safety Stewards reporting to middle SGS (Pvt.) Limited, for Occupational Health, level representative called Area Safety Safety and Environment, Pakistan National Incharges which directly reports to top level Accreditation Council for Quality of Testing management lead by CEO. Services and M/S Ferguson & Company for Good workplace conditions and relations can Financial Accounts. help us to attract, keep and develop human Report Format & Core Sustainability capital with high morale. To protect the health Principles of employees, neighbors and consumers, we There are no significant changes in the size and pro-actively manage the relevant aspects of structure of organization since last year. ARL our operations through our subsidiary Attock 6 Sustainability Report 2010
Hospital Limited. In this regard an obesity After reviewing these sources, we compiled a survey is conducted to convince the list of issues and prioritized each one for employees to find sometime for their health. actionable targets. It is our obligation to meet environmental The report has been divided into six sections challenges at both the local and Pakistan levels to provide information regarding company, by providing services through National stakeholders, social, environmental and Cleaner Production Centre to Small Medium financial sustainability challenges and Entrepreneurs. We are meeting all priority credibility. parameters of National Environmental Quality The report is being published in soft for Standards and planning to achieve zero circulation among our key audience. The same effluent by developing a constructed wetland shall be available for reference upon request. in Morgah Biodiversity park. In order to make contents of our sustainability We invite and share our performance and report available to other interested parties, a plans with our neighbors, civil society, copy of this report will be posted at our educational institutions and adjoining Union website ().www.arl.com.pk Councils. Report Audience We are following guidelines of Global We have identified our audience like Investors, Reporting Initiative (GRI-G3), Accountability Board of Governors, Employees, Contractors, (AA1000), Social Accountability (SA-8000), ISO Community, Union Councils, CBA Union, Gas Management Standards (ISO 14001, ISO 9001 suppliers like SNGPL, crude oil suppliers like and OHSAS 18001) for reporting Social, OGDCL, OPI, POL, MOL and BP, Government Environmental and Economic performances. agencies like PAF, Army, EPA Punjab, Ministry We consulted a variety of sources both of Labor, ILO, FBR, PSQCA, MP&NR, OGRA, internal and external as part of our materiality PNAC, SECP, OCAC, Rescue 1122, Adjoining assessment. These sources included: Hospitals, Adjoining Educational Institutions, Ü Company objectives, strategies, policies, Refineries like PARCO, PRL, Bosicor, NRL, Oil programs and risk factors Marketing Companies like APL, PSO, Shell, Ü Shareholder Annual General Meeting Chevron, Total PARCO, External Auditors like resolutions and anecdotal feedback SGS, Ferguson and media. Ü Input gathered through stakeholder Feedback Form & Contact Person for dialogues further information Ü Meetings with Neighbors & Union Please appraise us your feedback for further Councils improvement by filling feedback attached at Ü Employee surveys and other input the end of this report. Further information and gathered through feedback mechanisms details can be obtained from: Ü Customers contact feedback Mr. Zia Uddin Kirmani Ü Suppliers input Manager (Health, Safety, Environment & Quality) Attock Refinery Limited, P. O. Morgah, Rawalpindi Ü Media news and blog discussions Ph: 92 51 5487041, Fax: 92 51 5487254 Ü Stakeholder feedback [email protected] 7 Sustainability Report 2010
Board of Directors
Dr. Ghaith R. Pharaon Shuaib Anwar Malik Chairman Deputy Chairman
Tariq Iqbal Khan Laith Ghaith Pharaon Wael Ghaith Pharaon
Abdus Sattar M. Raziuddin Abdullah Yusuf (Alternate Director to Dr. Ghaith R. Pharaon)
Babar Bashir Nawaz S. Ahmed Abid M. Adil Khattak (Alternate Director to (Alternate Director to Chief Executive Officer Wael Ghaith Pharaon) Laith Ghaith Pharaon
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Company Information
Board Committees Audit Committee Responsibility: Abdus Sattar The Audit Committee’s primary role is to ensure Chairman compliance with the best practices of Code of Corporate Shuaib Anwar Malik governance, statutory laws, safeguard of Company’s Member Babar Bashir Nawaz assets through monitoring of internal control system and Member, (Alternate Director) fulfill other responsibilities under the Code.
Technical & Finance Committee Responsibility: Abdus Sattar, Chairman To recommend annual capital and revenue budget and M. Raziuddin, Member review any other financial matters or technical aspects M. Adil Khattak, Member relating to refinery operations / upgradation etc.
Photograph of the 152nd Board of directors meeting held in Damascus, Syria of September 29, 2010
Chief Financial Officer Share Registrar S. Ahmed Abid, FCA Noble Computer Services (Pvt) Ltd. Mezzanine Floor, House of Habib Building Company Secretary (Siddiqsons Tower), 3-Jinnah C.H. Society Fayyaz Ahmad Bhatti, ACA Main Shahrah-e-Faisal, Karachi-75350
Auditors Registered Office A. F. Ferguson & Co. The Refinery Chartered Accountants Morgah, Rawalpindi Tel: (051) 5487041-5 Legal Advisor Fax: (051) 5487254 Ali Sibtain Fazli & Associates E-mail: [email protected] Legal Advisors, Advocates & Solicitors website: www.arl.com.pk
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Company Profile Attock Refinery Limited (ARL) was incorporated as a Private Limited Company in November, 1978 to take over the business of the Attock Oil Company Limited (AOC) related to refining of crude oil and supplying of refined petroleum products. It was subsequently converted into a Public Limited Company in June, 1979 and is listed on the three Stock Exchanges of the country. The Company is also registered with Central Depository Company of Pakistan Limited (CDC). Original paid-up capital of the Company was Rs 80 million which was subscribed by the holding company i.e. AOC, Government of Pakistan, investment companies and general public. The present paid-up capital of the Company is Rs the period 1970-78 further indicated high 852.93 million. potential for crude oil production of around ARL is the pioneer of crude oil refining in the 20,000 bpd. In 1981, the capacity of Refinery country with its operations dating back to 1922. was increased by the addition of two distillation Backed by a rich experience of more than 85 units of 20,000 and 5,000 bpd capacity, years of successful operations, ARL's plants respectively. Due to their vintage, the old units have been gradually upgraded / replaced with for lube/wax production, as well as Edeleanu, state-of-the-art hardware to remain were closed down in 1986. In 1999, ARL competitive and meet new challenges and commenced JP-1 pipeline despatches, and in requirements. 2000, a Captive Power Plant with installed It all began in February 1922, when two small capacity of 7.5 Megawatt was commissioned. stills of 2,500 barrel per day (bpd) came on Another expansion and upgradation project stream at Morgah following the first discovery was completed in 1999 with the installation of a of oil at Khaur where drilling started on January Heavy Crude Unit of 10,000 bpd and a Catalytic 22, 1915 and at very shallow depth of 223 feet Reformer of 5,000 bpd. ARL's current 5,000 barrels of oil flowed. After discovery of oil nameplate capacity stands at 42,000 bpd and it in Dhulian in 1937, the Refinery was expanded possesses the capability to process lightest to in late thirties and early forties. A 5,500 bpd heaviest (10-65 API) crudes. The company is Lummus Two-Stage-Distillation Unit, a Dubbs considering implementation of projects like Thermal Cracker, Lubricating Oil Refinery and pre-flash unit to enhance the refining capacity Wax Purification facility and the Edeleanu by 10,400 per day and an isomerization unit to Solvent Extraction unit for smoke-point upgrade the RON contents of motor gasoline as correction of Kerosene were added. well as reduce benzene and aromatics contents. There were subsequent discoveries of oil at The Company is ISO 9001, ISO 14001, ISO/IEC Meyal and Toot (1968). Reservoir studies during 17025 and OHSAS 18001 certified. 10 Sustainability Report 2010
The Management / Organogram
CEO
2
DGM (F&CA)
4 3
AGM (Ops) AGM (TS&E)
5
SM (C&MM)
8 11 13 14 9 7 6 10 12
M (HR&A) M (F&A) M (U&OM) M (Plants) M (M) M (HSEQ) M (E) M (TS) M (P&D)
15
AM (BR&A)
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ARL Present Configuration
Attock Refinery Limited (ARL) receives crude oil through bowzers as well as pipeline. Crude oil thus received is subjected to fractional distillation. Products are stored in their respective storage tanks and dispatched to customer after thorough quality inspection. ARL customers include Pakistan State Oil (PSO), Attock Petroleum Limited (APL), Shell Pakistan Limited, Total Parco, Byco, Hascol, Askar 1, Admor & Chevron Pakistan Limited.
Chevron
ASKAR
HASCOL
OOTCL BTCPL
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Refinery Inputs & Outputs The figures given below are for the financial year 2009-10: Input Crude Oil 1,743,987 Tons
Electricity 34,532,136 KWHr
Steam 143,630 Tons
Fuel Gas 2,695,577 MCF
Fuel Oil 23,231 BBL
Water 283.3 Million Gallons
Output
LPG 7,408 Tons PMG 347,538 Tons Export Naphtha 162,369 Tons Solvent Oil 929 Tons Kerosene 44,707 Tons Jet Fuel 176,736 Tons MTT 6,536 Tons HSD 491,370 Tons DFO 2,605 Tons JBO 3,661 Tons FFO 366,142 Tons Asphalt 72,374 Tons Wastewater 85.6 M. Gallons
CO2 641,145 M. Tons 13 Sustainability Report 2010
Ongoing and Future Projects Naphtha Isomerization and the Diesel Hydro Desulfurization Units To improve product quality with changing environmental standards and value addition, ARL is actively considering installation of an Isomerization Complex to upgrade its Light Straight Run Naphtha (LSRN) to produce PMG with low benzene and aromatics. A Diesel Hydro Desulfurization Unit (DHDS) to reduce sulfur in High Speed Diesel (HSD) to meet Euro Standards has also been planned. M/s UOP USA, the world leading Licensor/Technology providers for these processes have completed the Front End Engineering Design (FEED) while the FEED work for off sites /auxiliary units along with ITB documents for soliciting Engineering, Procurement, Construction & Commissioning EPCC bids has been prepared by M/s ENAR Petro tech Services (Pvt.) Ltd. ARL is now in a position to move to the EPCC phase on both these Projects. However, outcome of the decision by Government of Pakistan (GOP) to revise the Pricing Formula and the approvals of the will be available in the near future. ARL’s plan incentives requested for the DHDS project is to set up a Pre flash Unit which was on hold, still awaited. Whereas incentives are essential subject to availability of crude oil in the to materialize these projects, continuity in northern region, is being revived to enhance Government policies is a vital element to its refining capacity on a fast-track basis. The ensure investor confidence and continued FEED has been updated by M/s CB&I (Howe- investments in the Refineries. Baker) USA and the Project is now ready for Pre flash Unit for capacity enhancement the invitation of bids to award an EPCC The crude receipts from the Northern fields contract. have been steadily increasing with finds in the White oil pipeline project TAL Block. With development of these fields, The activity on the pipeline project was put on as per the projections given by the Crude hold due to several reasons that included lack producers, further enhanced crude volumes of interest on the part of Joint Venture partner, 14 Sustainability Report 2010
rising capital costs due to delays and consequential tariff considerations but the project was reactivated after the Government again showed its renewed interest in continuation of the project. Several meetings were held with MP&NR officials and Pakistan State oil (PSO) in March-April 2010 to discuss the project status and the way forward. Based on the current and future movement of product volumes and other related parameters, the feasibility of the project has been updated. However, the Project can only be implemented with the support from the Government and Joint Venture partners to make this vital infrastructure project viable for all stakeholders. After initial meetings, no material progress has been made thereafter. The Project still remains feasible in the long term perspective and with guarantees for throughput. Other Projects Storm Water Drain (Phase II) To segregate the oily and non-oily drains to avoid excessive over loading of effluent treatment plants and improve its efficiency as well as environmental improvement, the existing storm water drain system was completed in 2 phases at a total cost of Rs. 10 million. Storage Capacity New product storage Tanks of Furnace Fuel oil, HSD and Naphtha having capacities of 6800 MT, 600 MT and 4600 MT respectively, were completed during the year. The creation of additional storage provides operational flexibility to cater for any enhance storage requirements whenever beneficial.
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Chapter 2
Business Partners
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Stakeholders Identification, Dialogue and Our Response
Stakeholders 44Attock Petroleum Supreme Global Limited (APL) Services 44Pakistan State Oil (PSO) National Highway 4Shell Pakistan Ltd. (SPL) Authority (NHA) 44Chevron Pakistan Ltd. (CPL) Pakistan Oilfield Limited (POL) 44Total Parco Pvt. Ltd. Foreign buyers of petroleum 4Pakistan Air Force (PAF) products 44Defense Energy Support Center (DESC) Kot Adu Power Company Ltd.
Needs Our Response Dialogue
Response for Oil Movement Section Fortnightly After Sales Services 4Ensures Timely Availability Meetings, Quality & Quantity, 4Quantity Compliance Customer Site Visits 4Response to Queries Timely Availability 4Administrative Complaints (Quarterly / As & of Products, Quality Control Laboratory when required), Customer 4Ensures Quality Exchange of Satisfaction, 4End User Satisfaction Information, 4Customer Satisfaction Technical Assistance 4Technical Assistance Quarterly Customer and Financial 4Technical Complaints Feedback through, Compliance. Invoicing & Receivables Tele / E-Mails / One Management to One Meetings, 4Accurate Timely Billing Coordination Technical and 4Financial Complaints Awareness Quality Council (Quarterly) Sessions. 4Customer Feedback 4Compliance Status 4Analysis & Action Plan 4Integrated Management System (IMS) Audit Finding 4Follow-ups
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Stakeholders Identification, Dialogue and Our Response
Stakeholders 44Oil Companies Local Government/ Advisory Committee Community/Union (OCAC) Councils 44Oil and Gas Regulatory Directorate of Labor Authority (OGRA) 4Federal Board of Revenue 4Ministry of Petroleum & Natural (FBR) Resources (MP&NR) 4Security and Exchange 4Pakistan Standard Quality Control Commission (SECP) Authority (PSQCA) 4Stock Exchanges 4WAPDA, SNGPL 4Environment Protection Agencies (EPA) 4Crude Producers POL, OGDCL, PPL, OPI, BP 4Rescue 1122 & Other like Agencies & MOL 4Financial Institutions
Needs Our Response Dialogue
Quality products & Oil Accounting Section Fortnightly product services, Legal NEQS 4Coordination with MP&NR for crude allocation meeting with compliance, Prompt pricing & discounts, Petroleum MP&NR at OCAC. Daily development levy, Excise duty sales figures to MP&NR, response, Technical 4 OGRA for IFEM, Payment to crude Crude pricing, PDL, feedback, Compliance suppliers to code of corporate 4FBR for excise duty & sales tax Coordination with governance, Payroll & Employees Fund Section MP&NR, Fortnightly meeting with OGRA for Community welfare, 4FBR for monthly/annual return of Inland Freight Tax deduction & withholding, income & personal tax Account Payable Section Equalization Margins deposition, Timely 4FBR for contractors, suppliers & service (IFEM) at OCAC, Direct utility bills payment, providers tax deposition coordination with Development of Corporate Affair Section WAPDA, SNGPL and policies framework, 4Stock exchanges, SECP, Financial Directorate of Labor, Energy conservation, institutions Monthly/annually Assets safety, Sales Coordination coordination with FBR 4MP&NR for product sales figures (daily) infrastructure 4MP&NR & OCAC for supply demand of for income tax, Personal development, Water petroleum products. Import decisions, and sales tax, Monthly supply, Educational Area wise product analysis coordination & facilities and worker Human Resource & Admin. reporting to EPA, welfare, Conducive 4Local Govt. Labor deptt, Community, Quarterly coordination working Union Councils with PSQCA. environment, Timely HSEQ Department 4PSQCA crude bills payments 4Crude Evaluation 4Rescue 1122 4EPA
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Stakeholders Identification, Dialogue and Our Response
Stakeholders 4Institutional 4Professional Shareholders Trainers 4Employees 4Crude / Products 4Contractors Transporters 4Collective Bargaining 4Students Agents (CBA) 4Non-Governmental 4Neighbors Organizations 4Private Shareholders 4Local Refineries Media Liaison 4General Order Suppliers 4Coverage Universities & Post 4Third Party Independent Auditors Graduate Colleges 4Investors Majority Shareholders 4Financial Institutions 4Human Resource Consultants Needs Our Response Dialogue
Safe operation of Operations Department Board of directors and refinery, Value 4Safe operation of plants, value addition shareholders addition, 4Drivers comfortable stay at ARL meetings, Works 4Liaison with local refineries Transparency, council, Refinery Business Review & Assurance Department Compliance to code of management corporate governance 4Compliance to code of corporate governance 4Coordination with third party auditors committee, Risk & materiality 4Materiality principles compliance management & principles, Sharing of 4Routine Review and Audits social, environmental strategic committee, Finance Department Neighbors & financial 4Transparency in dealings statements, Timely 4Preparation of quarterly & annual accounts participation on payments of dividends 4Sharing financial statement refinery functions, & bonus shares, 4Liaison with financial institution for short and Succession planning & Drivers facilities like long term investment career management 4Timely payments of dividends & bonus shares rest rooms, Payments committee, Suppliers to transporters, On to shareholders feedback, Agreements the job training, 4Payments to transports apprenticeships, HR Department with transporters, and Community welfare 4On job training internship programs projects, 4Community welfare projects for students. Assisting 4Media Environmental testing 4Educational Visits universities for R&D. facilities, 100% Sales 4Employees satisfaction surveys of products Commercial & Material Management Deptt. 4100% product sales 4Customer Liaison and Satisfaction 4Compliance to transporters agreement and payment facilitation HSEQ Department 4Sharing social and environment performance with stakeholders 4Environmental testing facilities 4Oppertunities for Research and Development 4Quarterly crude pricing joint testings Company Secretary 4Arrangements of board & shareholders meeting 19 Sustainability Report 2010
Customer Feedback about ARL Fourth Quarter (July to September 2010) Response Cycle Availability Service Product Customer Competence Time Time of People Quality Quality Pakistan State Oil 555555 Shell Pakistan Ltd. 5 55 555 Chevron Pakistan Ltd. 5 5 4.5 4 45 Attock Petroleum Ltd. 555555 Pakistan Air Force 545555
Third Quarter (April to June 2010) Response Cycle Availability Service Product Customer Competence Time Time of People Quality Quality Pakistan State Oil 555555 Shell Pakistan Ltd. 5 5 5 5 55 Chevron Pakistan Ltd. 444.5 4.5 5 5 Attock Petroleum Ltd. 5 5 5 5 5 5 Pakistan Air Force 5 5 5 5 5 5
Second Quarter (January to March 2010)
Response Cycle Availability Service Product Customer Competence Time Time of People Quality Quality Pakistan State Oil 5 5 5 5 5 5 Shell Pakistan Ltd. 5 5 5 5 5 5 Chevron Pakistan Ltd. 4 44 444 Attock Petroleum Ltd. 555555 Pakistan Air Force 545 5 5 5
First Quarter (October to December 2009) Response Cycle Availability Service Product Customer Competence Time Time of People Quality Quality Pakistan State Oil 555555 Shell Pakistan Ltd. 5 5 4 555 Chevron Pakistan Ltd. 4 44 44 4 Attock Petroleum Ltd. 5 5 5 4 4 5 Pakistan Air Force 4 4 5 5 5 5
1-Poor 2-Fair 3-Satisfactory 4-Good 5-Excellent 20 Sustainability Report 2010
Product & Service Stewardship At Attock Refinery Limited (ARL), We are well aware of our responsibilities towards environmental, social and economic impacts of our services and products. We believe that product and service stewardship is core to our business strategy and operational activities. The figure is depicting our core activities associated with our response to its impacts on stakeholders define unbroken chain of ownership from raw material to product life cycle. The systematic approach towards identification of significant safety risks associated with our products and services helped ARL in development of such a sustainable HSEQ mechanism, which contributes in continual improvement of the ARL management systems. Training is given to all employees to enable them to work consistently as per standard operating procedures.
TECHNOLOGY STAKEHOLDERS
Planning Process Blending Recycling / Investors CommunityEmployees Suppliers Production Effluent Treatment Insurance, Health Services, Medical Crude Oil, Core Values Women Welfare, Training & Chemical Demand Industrial Industrial Slant Rib & Recreational Development Testing, Supply Hygiene Plant Hygiene Coalescer, Services Sport Faults Chain Plant audits & Dissolved Activities Capacity Monitoring Flotation API separators Safety Financial Help, Family get Research & Management, Skill togethers, Development Customer Pollution Segregation Recycling System Development, Zero interest Requirements Prevention Disposal Kitchen waste Policies Water Supply, Loans Plant safety Hazard Training Environmental water & Car Biodiversity Assessment wash water Customer Community Feedback, Feedback Plant Assessment Material Data Feedback Feedback Feedback Climate Evolution, Shutdown Equipment Sheet Complaints & AGM’s Union Council Surveys Meetings Safety Surveys Board of Surveys Department Complaints Turn Around EnergySolid Waste News paper Directors Complaints Meeting, Union Council PR Sessions ECONOMIC COMMUNITY
SOCIAL CONSUMER Any Other Requirements Product Scheduling Meeting
Industrial Environmental Participation Factories Act Customer Feedback, Complaints Hygiene Reporting in SMART Program, EPA Unleaded Unleaded Low Low Low Occupational Meeting Pollution Warranty Zero Low Aromatics Sulphur Sulphur Health Customer Charge Requirements Oxygenates Benzene Low Low Ash High Tensile Requirements High Low Sulphur High Strength Paraffins Aromatics Cetane High Facilities & Product Environmental Procedural Index Calorific Benefits Specifications Performance Preventive Value Employees Conformation & Monitoring Maintenance LPG PMG Kerosene JBO FFO Naphtha Aviation HSD Bitumen Petroleum Pakistan Pakistan Original Solvent Oil Fuel, MTT LDO PMB Rules Society of EPA Act Engine Quality Control Manufacturer Product Planning, Product Quality & Availability, & Assurance Requirements Manufacturing Process, After Sales Services
LEGAL REQUIREMENTS CUSTOMERS EXPECTATIONS 21 Sustainability Report 2010
Chapter 3
ARL CSR Initiatives
22 Sustainability Report 2010
work, discipline and dedication to duty Human Resource Policy and responsibility. ARL corporate policy on human resources is to 9. Exhaust all means to resolve Labor- attain the highest standards of Management differences, promptly and professionalism throughout the organization amicably, if any. by recognizing and revealing individual capabilities, productivity, commitment and 10. Provide a wholesome and friendly contribution. atmosphere for harmonious Labor Management relations. ARL firmly believes that the continued progress and success of the Company depends upon to a great extent on its personnel that only with a carefully selected, well trained, achievement orientated and dedicated employee force, can the company maintain its Leadership in the Refining industry. And because the most valuable asset of the company is its personnel, ARL has the following human resource policies: 1. Employ the best-qualified persons available, recognizing each person as an individual thus affording equal opportunity. 2. Pay just and responsible compensation in line with the industry standards, job requirements and work force. 3. Help employees to attain their maximum efficiency and effectiveness through a well-rounded training and development program. 4. Provide and maintain comfortable, peaceful and orderly working conditions. 5. Promote from within whenever possible and provide opportunities for growth and promotion to the employees. 6. Treat each employee with fairness and respect and in return expect from him in service marked by dedication, devotion, commitment and loyalty. 7. Encourage each employee to improve and develop himself and thereby prepare him for positions of higher responsibility. 8. Recognize and reward efficiency, team 23 Sustainability Report 2010
ARL CSR Initiatives vs Sustainability
Our Approach environment performance. The disclosures of Attock Refinery Limited (ARL) maintains a shortcomings of completeness are being commitment of businesses to include in its mentioned for making it as a target for next corporate practices the economics, social & report. environmental criteria/actions, which are Responsiveness Principle is applied to make above & beyond legislative requirements, and sure that ARL has responded to stakeholders are related with everyone influenced by their concerns, policies and adequately activities . communicated these responses. ARL We have adopted a decision-making process sustainability report has been used as a tool to that gives equal consideration to our three communicate our response to all highest priorities: Reliable energy source, stakeholders. The sustainability report is environmental stewardship and social placed on ARL web site not only to ensure easy responsibility. In other words, everything we access but also provides feedback mechanism do as a company is intended for the good of for two way communication. our stakeholders especially community. Global Reporting Initiatives Guidelines Social Responsibility has been the heart of ARL Principles are used to present summarized since it was formed. The Company has long economic, environmental, and social history of supporting and investing in local dimensions of ARL performance for communities and our approach is not just comparable reporting across diverse meeting the demands but go beyond their organization to facilitate standardized and requirements. Company has been focusing in systematic judgment. sectors like health, education, infrastructure Focusing on Corporate Social Responsibility development and social promotion. Materiality ARL adopted AA1000 standard and Global We have consulted a variety of sources reporting initiative guidelines for planning and internal as well as external as part of our reporting of our social programs to achieve materiality assessment. These sources high standard of transparency, fairness and includes: impartiality. · Company objectives, strategies, core Key Characteristics principles applied in an values, policies and programs assurance process are: · Independent judges feedback on our Materiality Principle to ensure that previous sustainability report stakeholders are fully on board for planned · Employee's climate surveys social and other sustainability related programs covering legal, regulatory, policies · Stakeholders Feedback related performance, behaviors impacts, · Shareholder resolutions and feedback views and their perceptions to enable them to · Stakeholder dialogues make informed judgments, decisions and actions. · Suppliers Completeness Principle to assess and identify · GRI 3 recommended topics and data for the extent of unbiased product, service inclusion related activities to social, ethical and After reviewing inputs from these sources and 24 Sustainability Report 2010
based on our analysis, we determined that the transparent working, ASF has been certified as material issues of key importance to ARL and NGO by Pakistan Centre of Philanthropy (PCP). our stakeholders have been considered as Main objective of ASF is to identify the social short, medium and long term plans. initiatives and help out ARL to streamlines its Social Programs Identification Forums & community based endeavors more focused Activities and result oriented in best interest of community as well as organization. Employees: In an era of increasing international and local competition, the Community: capability of an organization to build a ARL follows a consistent policy of social corporate culture that attracts and retains interaction with its neighbors and keep talented people is rapidly emerging as the periodic liaison with all stakeholders to have most important criterion for organizational their perceptions and views on ARL social success. Employees want to work for endeavors. This includes our meetings with companies that are not only great places to concerned area nazims, schools & colleges work, but embrace sustainable development as well as being socially responsible. They want to feel a sense of alignment between their personal values and their company's values. For this purpose ARL has adopted multiple strategies to transform its culture and values alignment with each employee because, we firmly believe that our most important asset is our employee. Attock Sahara Foundation: Similarly to keep its Social initiatives in line with economic and environmental endeavors a company sponsored NGO Attock Sahara Foundation has been established which is playing a vital role in uplifting the social and economic aspects of the surrounding community. administrations in the locality, District In recognition of its commitment and Coordination Officer, Local Fire Club Members like 1122, Civil Aviation Authority (CAA), National Disaster Management Authority and suppliers and customers. Following process helped ARL in visualizing and formulating its strategies for actionable social objectives and plans. Area Union Councils Meetings provided us community perception and interpretation of ARL business operation and translatable expectation of community. One of our representative attended Morgah and Kotha Kalan Union Councils meeting to record 25 Sustainability Report 2010
debates, discussion and demands of Union · Scholarships to deserving students of councilor's specific to ARL. community Communication of ARL commitment and · Hepatitis Vaccination social program to community by displaying · Human Rights Awareness large number of colorful banners with thought · Free Medical Assistance to poor segment of provoking statements were displayed at community prominent locations as a part of communicating ARL commitment to social · School facilities/Utilities assistance responsibility value. · Carriage Contractors Drivers facilities Blood Donation & Free Medical Camps were · Urbanization organized to involve community, employees · Supply Chain Management to inculcate the spirit of volunteerism and service to mankind. These camps helped us in · Water resources development identification of disease profile being faced by · Media Fearlessness community and to make a data base for future Solutions & Performance planning. Its feedback shall be utilized for continual improvement. Our responses to above challenges are summarized as under: Product Responsibility & Customer Satisfaction feedback from Oil marketing Attock Refinery Limited (ARL) is making a companies is taken in fortnightly meetings sincere effort to involve local community in held in ARL for allocation of products quota. development projects, focusing on capacity Apart from this forum ARL also get quarterly building rather than traditional donor feedback from external customers on quality beneficiary relationships. ARL believes that of products and services. Few customer's investing in the well-being of communities registered complaints on quality of products and broader societies are important to its and after sales services. All customers' success as a business. complaints were discussed in quarterly The areas of Morgah, Kotha Kalan and Jhamra Quality Council meeting chaired by Chief are facing acute shortage of drinking water Executive Officer. since long. To overcome this situation and to Challenges Identified keep the socioeconomic structure of the areas intact, ARL has been serving the community by Major direct and Indirect Social challenges providing drinking water through overhead identified through above forums are as under: water reservoirs. Water is supplied free of · Women Skill Development cost. Recently ARL provided free water · Indirect &direct jobs to local residents connections through pipe lines to more than 50,000 people. This facility is also extended to · Infrastructure development nearby located i.e., Fauji Foundation Hospital · Government Pricing Formula and SOS Children village. · Employees Retention ARL supports the educational community over · Mother care and above the reliance of its workforce on it. ARL provides the opportunity of continuing · Recreational facilities education to the students of the areas. The · Local young's capacity building company has constructed a Junior Model · Drinking water supplies to community School in the colony area of Morgah up to 8th 26 Sustainability Report 2010
class. Most of the expenses incurred in this connection are borne by the company and a minimal fee is charged. Moreover, scholarships are awarded to the children of employees from primary up to post graduation from top rated institutions of Pakistan like Ghulam Ishaq Khan Institute (GIKI) and Lahore University of Management Sciences (LUMS). ARL also provides annual grants to Union Councils of the area to run smoothly. Recently Punjab Workers Welfare Board formally dynamic and challenging business approved the setting up of two model schools environment. at Morgah. According to Mr. M. Adil Khattak, Chief Second Human Resource Conference 2010 Executive Officer ARL, all over the world, The Second Human Resource (HR) Conference organizational functioning is being was convened on February 24, 2010 under the transformed to face the emerging new auspices of ARL at Morgah Club, Rawalpindi. challenges. The current economic down turn, The theme of this Conference was “Fueling the the worst since World War-II both globally and Change”. The most significant feature of this locally, confronts us with a daunting challenge conference was presence of distinguished calling for creative and out of box solutions. speakers and overwhelming participation of Considering the prevailing socio-techno-eco- HR professionals representing more than 50 environmental challenges being faced by organization from all major sector of economy private as well as public sector organizations, i.e, Oil & Gas, Manufacturing, Banking, Petro- ARL realized the emerging need for a platform chemical & Fertilizer, Cement, IT, Engineering, where HR professionals and experts could Fast Moving Consumer Goods, Healthcare, share their ideas, experiences, and indigenous Packaging, Telecom, NGOs, Power solutions to our common people issues. Generation, Consultants & Academia etc., He appreciated the ideas of different speakers pursuing the sole purpose of learning and and enthusiasm shown by the participants, understanding the contemporary challenges and assured that they will always find ARL being faced by HR professionals in today's ready to extend maximum support and cooperation in research, development and other related activities. Welfare Spending for Under-Privileged Classes Attock Sahara Foundation, a Company sponsored non profit NGO, is playing a vital role in uplifting the economic conditions of the surrounding communities through various welfare activities carried out during the year. These included vocational training, computer classes, financial and dowry assistance, 27 Sustainability Report 2010
medical assistance through Private Patient Poor Fund, elementary education etc. Such activities are carried out by ASF on a self financing basis by generating funds through fund raising activities. Scholarship for Brilliant Students Your company is not oblivious of the fact that the talented children of our employees need considerable support and encouragement in these difficult times. ARL management offers scholarships from class 1 to PhD to employee children. During 2009-10 scholarships were awarded to 62 students at different levels. This support is enabling our employees to get quality January 9 & 23, 2010 at Union Councils education for their children; as such ARL is cultivating the seeds of hope for better tomorrow. Morgah and Kotha Kalan respectively. A large number of people underwent medical check- Blood donation & Free Medical Camp up by the doctors in both camps. As part of its CSR initiatives, the Company Donation & Medical assistance for Flood conducted a Blood Donation Camp in Victims collaboration with Attock Hospital Limited ARL employees donated two days salary to the Prime Minister of Pakistan fund for flood effectees of Khyber Pakhtun Khwa. ARL in collaboration with Attock Sahara foundation (ASF) provided relief goods including free medicines, Charpais, Dry / Packed food etc. to flood effectees relief camp at Nowshera. ASF also conducted 2 free medical camps at Nowshera & Mardan districts in collaboration
(AHL) (wholly owned subsidiary) and Armed Forces Institute of Transfusion (AFIT) at Morgah, Rawalpindi. After proper screening 216 units of blood were collected from the volunteers. Being a socially responsible organization Attock Refinery Limited in collaboration with Attock Hospital and Attock Sahara Foundation also arranged two free medical camps on 28 Sustainability Report 2010
with AHL, its subsidiary to provide health care Community Safety Awareness Sessions services to poor. Over two thousand patients HSEQ department in adherence to the ARL under went medical check up and were also core values being socially responsible provided free medicines with assistance from organization arranged safety awareness ASF. sessions for the local community. Objective Employment of Special Persons was to equip our neighbors with basic In order to provide employment opportunities to knowledge of safety and emergency physically handicapped persons and to provide preparedness and response. Audience were them a chance to earn respectable living thus informed about home safety, fire fighting and making them useful members of the society, the road safety. Sessions were conducted for Company has an allocated quota for such persons Morgah club ladies members, AOC Boys and ensures that it keeps under employment the School. allocated numbers. Education & Training Aspects In pursuance of its core values of learning & innovation, ARL provided education and learning opportunities like internship, apprenticeship, training program and study projects to students and fresh graduates. Merit scholarships were also awarded to the employees children from primary up to the post graduation level. Community investment and Development Schemes ARL is providing several community services for the welfare of the surrounding population living in the vicinity of the Refinery. These Other ARL CSR initiatives: include provision of electricity, water and gas facilities to schools and Masjids and · Infrastructure development of the maintenance services for these buildings. The adjacent union council areas. company has also provided well maintained · Additional public water headers sports grounds for hockey and cricket · Skill development programs through ASF alongwith other sports facilities at which the employees and their children engage · Financial assistance / dowry funds / themselves in healthy activities. Scholarships Clean Water for the community · Medical facility to the community Company continued its policy of providing potable fresh water to the surrounding population in the villages of Morgah, Kotha Kalan, Jhamara and welfare Organizations like SOS Village, Deaf & Dumb School and other local Schools and Mosque in the area.
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GRI Social Performance Indicators Labor Practices and Decent Work Performance Indicators
EMPLOYMENT Rating Code Description Management
As on October 1, 2010 Regular Management Staff = 201 Total workforce by employment Regular Non Management Staff = 365 Core LA1 type, employment contract, and ARL Contract Staff = 102 region. Total = 668 Contractor Staff = 486 Trainees/Apprentices = 115
Total number and rate of employee Core LA2 turnover by age group, gender & Turnover 6.00 region. Benefits provided to full-time employees that are not provided to ARL does not offer part-time Add LA3 temporary or part-time employees, by employment. major operations. LABOR MANAGEMENT RELATIONSHIP
52.4 % of total workforce is covered under CBA Percentage of employees covered by Core LA4 95.9% of Non management staff is collective bargaining agreements. covered under Collective bargaining agreements.
Minimum notice period(s) regarding On expiry of CBA agreement, the next operational changes, including charter of demand is furnished with in Core LA5 whether it is specified in collective three months. CBA Agreement is due agreements. after every two years.
OCCUPATIONAL HEALTH & SAFETY
ARL has a Central HSE Committee Percentage of total workforce representing both management and represented in formal joint workers. Besides, there is Joint Work management worker health and Council representing both Add LA6 safety committees that help monitor management and workers' and advise on occupational health representative. The Joint work Council and safety programs. also promotes conditions of Safety and Health for the workers.
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OCCUPATIONAL HEALTH & SAFETY Rating Code Description Management In last 5 years ARL has brought down total accidents incident rate from 15 Rates of injury, occupational to 5 which clearly shows continuous diseases, lost days, & absenteeism, & improved safety culture at ARL. Core LA7 During January 2010 ARL achieved total No. of work related fatalities by 4.5 million safe man hours, this region. milestone has been become achieved due to joint efforts of all ARL staff and Contractor s ARL has a well established occupational health & safety related Educational, Training, Counseling, issues communication system. The prevention & risk control programs in issues are communicated to the Core LA8 place to assist workforce members, workers & their families through their families or community safety alerts. Moreover, awareness members regarding serious diseases. session with ARL Hospital's doctors are conducted regularly about the serious diseases Yes, health and safety topics have Health and safety topics covered in Add LA9 been covered in formal agreement formal agreements with trade unions. with trade unions. TRAINING & EDUCATION
Total number of employees trained in year 2009-10: Average hours of training per year per In-house Training :630 Core LA10 employee by employee category. Training through Local institutions :41 Training abroad: 3 Total training hours given : 3,950
ARL have comprehensive and well crafted skills management program of Statutory Apprenticeship, Short term Apprenticeship & management Programs for skills management and development program for fresh lifelong learning that support the Engineers, B.Scs, DAEs, MBAs etc. Add LA11 continued employability of The duration of such programs varies employees and assist them in from 1 to 3 years. Besides, managing career endings. management staff are extensively engaged in management development program round the year.
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TRAINING & EDUCATION Rating Code Description Management
100% of employees are receiving regular performance and career development reviews. We have very Percentage of employees receiving elaborated performance appraisal Add LA12 regular performance and career system which provides employees development reviews. platform for showing their potential in formal way. We arrange guidance session for employees before setting their respective yearly targets.
DIVERSITY & EQUAL OPPORTUNITY
Composition of governance bodies Our governance bodies and their and breakdown of employees per compositions have already been category according to gender, age discussed in detail under heading of group, minority group membership, The Company. and other indicators of diversity. Female/ Male Ratio : 8/ 668 Core LA13 There are significant number of employment opportunities for females at Attock Hospital Private Limited and Attock Sahara Foundation.
Employees of similar cadres Ratio of basic salary of men to women irrespective of their gender are hired Core LA14 by employee category. on same basic salary hence no discrimination
Human Rights Performance Indicators INVESTMENT AND PROCUREMENT INDICATORS Percentage and total number of significant investment agreements Yes, human rights clauses have been Core HR1 that include human rights clauses or included in all of outsourced that have undergone human rights employment agreements. screening. Percentage of significant suppliers and contractors that have undergone Core HR2 Nil screening on human rights and actions taken.
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TRAINING & EDUCATION Rating Code Description Management
Total hours of employee training on policies and procedures concerning Add HR3 aspects of human rights that are Nil relevant to operations, including the percentage of employees trained.
NON DISCEIMNATION
Total number of incidents of Core HR4 Nil discrimination and actions taken.
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
No Incident has been identified in which Operations identified in which the the right to exercise freedom of right to exercise freedom of association and collective bargaining has Core HR5 association and collective bargaining been affected. may be at significant risk, and actions We respect the right to associate with taken to support these rights. CBA and right to vote in referendum.
CHILD LABOR
Operations identified as having Nil significant risk for incidents of child Core HR6 labor, and measures taken to contribute to the elimination of child At ARL, minimum Age limit for labor employment is 18 years.
FORCED AND COMPULSORY LABOR
Nil
Operations identified as having We strictly comply with Factories Act significant risk for incidents of forced 1934 and Bonded Labor System Core HR7 or compulsory labor and measures to (Abolition) Act, 1992. We have also contribute to the elimination of voluntarily adopted the UN Global forced or compulsory labor. Compact Principles. We have well elaborated policy of Ethics and Business practices in this regard.
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SECURITY PRACTICES Rating Code Description Management
Training and Development is one the key indicator and its contents include policies, procedures, management, Percentage of security personnel community development, human trained in the organization's policies rights, gender justice etc. Security Add HR8 or procedures concerning aspects of personnel are sensitized on continual human rights that are relevant to basis with respect to organization's operations. policies or procedures concerning aspects of human rights that are relevant to operations.
INDIGENOUS RIGHTS
Total number of incidents of violations ARL respects the right of indigenous Add HR9 involving rights of indigenous people people and no incident has been and actions taken reported regarding its violation.
Society Performance Indicators
Community
Nature, scope, and effectiveness of ARL has actively been involved in any programs and practices that different CSR Initiatives including Core SO1 assess and manage the impacts of education, poverty alleviation, operations on communities, including environment, health, community entering, operating, and exiting. development, water provision etc.
Corruption
Percentage and total number of 100% of business units have been Core SO2 business units analyzed for risks analyzed for risks related to related to corruption. corruption. Percentage of employees trained in Core SO3 organization's anti-corruption policies All and procedures.
Strict action is taken against incidents Actions taken in response to incidents Core SO4 of corruption (if found) including of corruption. termination from employment.
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PUBLIC POLICY Rating Code Description Management
ARL has signed the Ethics policy on the Platform of Oil Companies Advisory Committee (OCAC) along with other members from Oil & Petroleum sector to abide by the Public policy positions and highest ethical standards, observed Core SO5 participation in public policy regulations applicable to the development and lobbying. industry and laws of the country, conduct business with integrity and honesty, treat stakeholders fairly, communicates openly and be accountable.
Total value of financial and in-kind contributions to political parties, Add SO6 Nil politicians, and related institutions by country.
ANTI COMPETATIVE BEHAVIOR
Total number of legal actions for anticompetitive behavior, anti-trust, Add SO7 Nil and monopoly practices and their outcomes.
COMPLIANCE
Monetary value of significant fines and total number of non-monetary Add SO8 Nil sanctions for noncompliance with laws and regulations.
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ARL Social Plans
l Scholarships to l Creation of Employees children for Educational & Graduate & Post Vocational Institutions to graduate professional create employment V Studies opportunities for local l Up gradation of i l Office Management community Children's Polytechnic Institute to Training to Employees t l Establishment of world College & get Foreign daughters at leading a class Attock Oil University affiliation l organizations Polytechnic Institute at l Scholarships to Morgah to cater for Employees Children's for serious shortage of 5,th Matric & skilled manpower in Intermediate level Pakistan.
S i l Establishment of a g l Drinking water filtration Paramedic training n unit for community in Institute affiliated with l Intermediate level model collaboration with Punjab Medical Faculty Schools establishment in i Morgah in coordination f PCRWR l Registration of ASF current vocational with Punjab Worker i l ASF Poor Patients fund Welfare Board. disbursement curriculum with Punjab & c Technical Board l Facilitation for shifting of a l Facilities to Adjoining Board of Intermediate n Schools for books, l Water Resources development for and Secondary education t Laboratory Equipments, building to Morgah glassware etc. sustainable supply of water to community
N o l Community t Infrastructure l Coordination and system e development (Road development with repairs) l Model Health, Safety, w neighbors Colleges & Environment & Quality o l Medical Camps for University to get benefit facilities for training of oil r Community of Refinery technical & Gas Sector of Pakistan facilities t l Blood Camp for needy l Expansion of Attock h patients l National level Sports Hospital y l Awareness campaigns for facilities to Community solid waste disposal
Short Term 1-2 years Medium Term 2-5 years Long Term 5 years
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Chapter 4
ARL Environmental Initiatives
37 Sustainability Report 2010
ARL Health Safety Environment & Quality (HSEQ) Policy ARL is committed to provide the best quality products in the market, endeavors to protect the environment and to ensure health and safety of its employees, contractors and customers and to work for continual improvement in health, safety, environment and quality (HSEQ) systems. ARL is committed to comply with all applicable Health, Safety, Environment and Quality laws and regulations. The policy shall be used to demonstrate this commitment through:
Health reuse of effluent wherever possible and use of ARL seeks to cost-effective cleaner production techniques conduct its that lead to preventive approach for activities in such a sustainable development. way as to promote Quality the health of and ARL recognizes employees' input towards avoid harm to its quality by emphasizing skills development and employees, professionalism. ARL must be customer contractors, driven, cost effective and continuously visitors and the community. ARL ensures that every employee or contractor works under the safest possible conditions. It is our firm belief that every effort must be made to avoid accidents, injury to people, damage to property and environment. Safety ARL believes that practically all accidents are preventable by carrying out risk assessments, and reducing risk identified, by appropriate controls. improving services, works and products to Environment meet requirements of the market. ARL conducts periodic audits and risk assessment ARL is committed of its activities, processes and products for to prevent setting and reviewing its objectives and pollution by the targets to provide assurance, to improve HSEQ efficient use of standards and loss control. ARL is committed energy throughout to share all pertinent information related to its operations, HSEQ with all concerned parties. recycling and 38 Sustainability Report 2010
ARL Environmental important to stakeholders and to ARL itself. This definitely results in shorter, focused and Initiatives vs. sustainable solutions to these issues. This analysis is also important to provide Sustainability stakeholders the confidence that ARL Our Approach sustainable environmental strategy is addressing their concerns. It is our firm belief that sustainable environmental development can't be brought We have obtained our environmental issues about by defining policies only; rather we by seriously reviewing our environmental must integrate immediate, short-term and assessment, our short, medium and long longer-term objectives, applicable legislation terms plans, legal environmental and regard social, economic and requirements, feedback from customer, environmental issues as inseparable and community, employees, coordination with interdependent components for sustainable environmental protection agencies like development. Pakistan EPA, etc. Following are the material issues to ARL: In order to define ARL's environmental strategy, plans and performance, following · 100% compliance to National items are discussed in detail: Environmental Quality Standard (NEQS) 1 Materiality analysis to define issues · To obtain green industry status from Pakistan Environmental Protection Agency 2 ARL challenges regarding environment · To achieve Health, Safety, Environment and 3 Solutions to the challenges Quality department vision, mission and 4 Current environmental monitoring deliverables 5 Future environmental plans · Close coordination with neighboring 6 Our performance on GRI environmental institutions with reference to HSE issues indicators · Celebration of events like World Materiality Analysis for ARL Environment Day to revitalize our Environmental Sustainability commitment In materiality analysis for ARL environmental · Continuous feedback from customers, endeavors, we considered the significant employees and adjoining community current or potential environmental impacts on · To develop knowledgeable employees our company. We have categorized our through awareness and training environmental plans as noteworthy, ARL Environmental Challenges significant and vital and extended over the As a result materiality analysis, following period of time as short, medium and long environmental challenges are identified: term. 1 100% compliance to NEQS By using a materiality analysis to identify and prioritize issues, we are better able to allocate a) Construction of wetland in biodiversity resources to those issues that are truly park pond 39 Sustainability Report 2010
b) Spent caustic management and boiler priority parameters of liquid effluent. This was blow down treatment achieved after we controlled our NEQS c) Installation of Corrugated Plate violation of Chemical Oxygen Demand (COD) Inceptors (CPI) for collection of oil and occasional deviation in pH values in the d) Storm water management effluent water leaving the refinery. e) Solid waste management In corporate targets for the year 2009-10, we f) To obtain green industry status from have planned to 100% comply with the 32 Pakistan EPA NEQS parameters. In this regard, a team is working to evaluate different proposals to be g) Amendment in NOx limit in NEQS adopted by ARL to achieve this milestone. for oil-fired reciprocating engine power plants Stakeholder's awareness We have continued reporting our environmental monitoring data to Punjab 2 Stakeholders Awareness Environmental Protection Agency (EPA) as 3 Green image of ARL well as Federal EPA. 4 HSEQ department vision, mission and A brief on in progress environmental projects deliverables in as under: 5 HSEQ sustainable initiatives: a) Construction of wetland in a) Celebration of Safety Week and biodiversity park pond World Occupation Health Safety day We have decided to develop a wetland in b) Hazard identification and Morgah Biodiversity Park (MBP) pond. The communication pond has a capacity to hold approximately 80 c) Occupational Health & Industrial million gallons of water. The total effluent Hygiene exiting the refinery is around 90 GPM. d) Implementation of ARL HSE Required infrastructure is available and management standards project is targeted to be completed by June e) Scenario based emergency 2011. preparedness and response exercises b) Spent caustic management and f) Behavioral safety counseling boiler blow down treatment g) HSE statistics like safe man hours The project is taken up to address the NEQS and TAIFR deviations at the plant level rather than the at effluent treatment plant. The project has been h) Training and awareness implemented since the last one and a half Solution to the challenges year. Evaluation for checking its effectiveness Our responses to above challenges are is under progress. summarized as under: In this project, boiler blow down water is 1 100% Compliance to NEQS collected in a pit. Spent caustic from naphtha ARL has achieved year 2008-09 corporate and kerosene sweetening process is collected target of 100% compliance of National in the pit and both are neutralized before Environmental Quality Standards (NEQS) for exiting boiler house battery limit. The study 40 Sustainability Report 2010
helped ARL in controlling pH, COD and phenol where the solid waste was segregated at levels in final refinery effluent water. This source in six different categories. These research work is recently published in categories are paper, oily rags, glass, plastic, “Hydrocarbon Processing, USA” November different types of metals and leaves from the 2009 edition titled “Wastewater Treatment - trees. Currently the plan is more effective in A Refinery Case Study”. case of oily rags, which are incinerated and metals which are collected and are either reused or sold. We are planning to device a workable plan for the proper disposal of other types of solid wastes. f) Amendment in NOx limit in NEQS for oil-fired reciprocating engine power plants ARL has filed a proposal with Pakistan Environmental Protection Agency (EPA) to adopt NOx limit of 2,000 mg/Nm3 in light with World Bank guidelines 1998 for emissions related to internal combustion engine based oil fired thermal power plants. c) Installation of Corrugated Plate NEQS specifies NOx limits of 600mg/Nm3 for Inceptors (CPI) for collection of oil thermal power plants based on oil fired power In line with our medium term vital plants. ARL view point is that the conventional environmental plans i.e., Oil recovery from thermal power plants were based on boilers heavy crude unit desalter effluent water at who require 4 to 5% level of oxygen and in this plant battery limits, a project to install case NOx limit of 600mg/Nm3 as specified in Corrugated Plate Inceptor (CPI) at the unit is NEQS can be complied. The matter is pending initiated to enhance oil water gravity with EPA council for approval. separation. This will not only help in However furnace fuel oil fired internal recovering the amount of oil but will also help combustion engine type thermal power plants in reducing the load on downstream oil and has to maintain 15% oxygen to facilitate water API separators. complete burning in closed combustion d) Storm Water Management chamber, which generate high pressure and This project was completed in year 2010 with temperature. investment of Rs. 10 million. This project 2 Stakeholder's Awareness helped ARL to manage effluent treatment in a One of the corner stone of any sustainable more control way in monsoon season. business is the care for stakeholders. To keep e) Solid Waste Management the stakeholder's aware of different projects Solid waste is on of key environmental aspects being carried out at ARL regarding our and to address this ARL has implemented a environmental performance, different events project of solid waste for around five years / sessions are conducted at regular intervals. 41 Sustainability Report 2010
These sessions include meeting with the environmental improvement in general and Union Council Nazim, local community school biodiversity conservation in particular. Poster principals, awareness lectures at different and speech competition winners were schools, celebration of World Environmental awarded prizes. Day and visits to ARL facilities. · Celebration of World Biodiversity Day · Celebration of World Environment Day at 2010 is the United Nations' International Year ARL of Biodiversity. It represents a milestone for preserving the diversity of life on earth. Attock Refinery Limited (ARL) in collaboration "Biodiversity and Development" - the theme with neighboring institutions, environmental for 22 May world Biodiversity day. clubs of Rawalpindi division, Murree Brewery, and Punjab EPA celebrated World ARL and National Cleaner Production Center Environment Day 2010, says a press release. (NCPC) in collaboration with Environment Protection Department, Government of On this occasion of World Environment Day, a Punjab, Rawalpindi arranged a walk followed
seminar was arranged at ARL's Management by a visit of Morgah Biodiversity Park. Development Centre. Two presentations were Students and teachers from various schools of delivered on the theme of this year i.e., “Many Rawalpindi district, officials from different Species One Planet One Future” and NGOs including, PIEDAR, Morgah Welfare “Morgah Biodiversity Park-A Case Study”. In Society, Eco Conservation Initiatives, the presentations issues like conversation of Government officials from Forest Department biodiversity, their effects and significance and Environment Protection Department were discussed. Presentation was followed by Punjab and other members of civil society a skit performed by environmental club participated in the walk. students, which was thoroughly appreciated The importance of biodiversity as well as the by the audience. harmful effects of invasive and alien species Mr. Shaukat Hayat, District Officer on the environment and natural habitats were (Environment) was the Chief Guest. In his explained to the participants. remarks, he appreciated ARL efforts for Morgah Biodiversity Park is the first of its kind 42 Sustainability Report 2010
in the Asia and Pacific region which Attock holding such a beautiful event. This flower Refinery Limited, in collaboration with the show shows company's care for the Government of Pakistan (Economic Affairs environment which is an example for other oil Division) and UNESCAP developed as a Pro- and gas sector companies to follow, he said. "I Poor Public-Private Partnership (5Ps) project. want this culture to spread more, I want the oil · Morgah Club Annual Flower Show and gas industry to emulate this," he added. This year Annual Flower & Vegetable Show 3. ARL Green Image was held on Thursday April 8, 2010. The flower Green plan is a project of ARL since several show is being held every year in two phases. years. Under this project activities are In the first phase, the judging of Lawns for initiated to keep ARL premises green. Annual Bungalow Garden Competition. And in second tree plantation campaigns and flower phase Judging was done for Vegetable and Cut cultivation during summer and winter seasons Flowers Arrangement Categories. This year are the major activities of this project, during judging was done on by Judges from which thousands of tree saplings are planted Islamabad Horticulture Society, National at ARL as well as surroundings communities. Horticultural Society & Department of 4. HSEQ Vision Mission Deliverables Horticulture/ Arid Agriculture University. As a company engaged in refining business, it Chief Guest, Syed Naveed Qamar (Federal is essential that we pay thorough Minister for Petroleum & Natural Resources), consideration to health, safety, environment distributed prizes amongst the winners in & Quality (HSEQ). We treat HSEQ with the various categories. While addressing the utmost importance, as it is through the proper participants chief guest expressed immense management of HSEQ risks that we can pleasure at the beautiful gardens that he achieve our goal of sustainable development. visited during his stay at the ARL. He paid · Central Health, Safety and Environment tributes to the gardeners for doing an Committee (CHSEC) meets every month excellent job and making the entire area look headed by CEO to revitalize our beautiful and green. He also appreciated the commitment to HSE management of Morgah Club and ARL for · Quality council meets every six months to discuss the performance of management systems headed by CEO · HSE sub-committees headed by managers, looking after each deliverable · Area safety incharges working at shop floor level for the improvement of safety · Safety stewards, a worker forum looking after sectional HSE aspects · Behavioral safety surveys to highlighting actionable areas · Occupational health surveys for promoting 43 Sustainability Report 2010
healthy employees Management Systems & adopt innovative · Contractors meetings to keep them along techniques to prevent incidents, minimize environmental impact, prevent environmental ARL practices and procedures pollution, and reduce health and safety risks to our · Incident reporting and investigations to see stakeholders. Few of HSEQ initiatives are given what went wrong, how to prevent below: reoccurrence and what to improve a. Celebration of Safety Week and · Environmental monitoring to check legal World OHS Day 2010 compliance level Safety culture promotional activities are one · Internal and third party audits to check of the key element of safety improvment in system compliance ARL in this regard in line with ARL tradition we Other sources of feedback like customer celebrate annual safety week and world OHS complaints, safety observation cards, safety day in April 2010.The theme of the week was talks, celebration of World Environment Day, to inculcate near miss reporting culture in ARL. World OHS Day and Safety week are also The philosophy is to involve all stake holders means to move towards HSEQ vision and including employees, contractors & mission. community in our HSEQ promotional 5 HSEQ Sustainable Endeavors activities. During the safety week different We continuously review and improve our HSEQ events and program were arranged for
44 Sustainability Report 2010
enhancement of safety awareness and fourteen ARL HSE management standards. improvement in safety culture at ARL. Main Current year objectives and targets of HSEQ activities during the safety week are banner's department will further focus on the display, safety walks, presentations, videos implementation. and safety awareness sessions for community. e. Scenario based emergency b. H a z a r d Identification and preparedness and response Communication exercises Hazard identification are one of the continues ARL HSEQ department adopted the activity being carried out for management operational philosophy to equip and give the occupational hazards & risks in the ARL emergency Response Team (ERT) team operational areas. Our objective is to bring training through scenario based drills. In this risks to ALARP (As Low As Reasonably regard different emergency scenarios are practicable) level To achieve this objective defined and response planning is done how to management programs & plans are established & followed. To involve all employees in the activity Safety Observation Card system is successfully giving its fruits. c. Occupational Health & Industrial Hygiene Occupational health & industrial hygiene programs are one of the key deliverables of the HSEQ department HSEQ in collaboration with Attock Hospital runs different programs for the awareness and improvement of OHIH among employees. In year 2010 an obesity survey was done for all employees or improvement of occupational health conditions of ARL employees HSEQ department in collaboration with AHL is continually monitoring the health of workers. handle and what resources in terms of men, In first phase we have conducted detail machine and material are required to manage medical of food handlers working in ARL this specific emergency scenario. On site pre dinner and clubs, and similarly audiometry and post drill briefings were conducted to test of almost 40 workers have been carried discuss the drill plans as well as areas for out to assess the effect of noise hazards on improvements highlighted by participants. hearing and also to check the effectiveness of f. Re certification ISO 9001:2008 operational controls to manage the hazards. Version d.Implementation of ARL HSE Re certification audit of ISO 9001 was held in Management Standards October 2010. SGS Pakistan has conducted the Work continued on implementation of audit the auditors has shown their satisfaction 45 Sustainability Report 2010
on implementation of the requirements of the H. Training and awareness standards and has recommended for HSE trainings are one of the continuous continuity certification of As discussed in last features of HSEQ department. Training year report, we have collected data through sessions on different topics are arranged for surveys regarding employee's behavior improvement in HSE awareness of all towards safety to establish a baseline. This stakeholders including the contractors & year we have conducted counseling sessions community. Following are the major areas for the employees scoring less mark in terms covered in training sessions conducted in year of their serious behavioral issues. The results 2010: of these counseling sessions are positive and · Use of PPEs for Safety Stewards and in side their follow up feedback will be discussed in refinery staff next year report. · Lab safety training for lab staff g. HSE statistics like safe man hours · Hazard Identification & Risk Assessment and Total Accident Incident Frequency · Material Safety Data Sheet (MSDS) Rate (TAIFR) · Permit to Work System ARL has achieved the target of TAIFR for financial year 2009-10. The TAIFR target for · Confined Space Entry Safety the said year was 5 and ARL TAIFR remained · Safe Driving for in Side Refinery Drivers well below the target i.e., 3.5. The target for having Driving permits the current year TAIFR is 3. ARL Safe man hrs · Backup Fire Fighting Squad Training target was started since last Loss Time Injury · Near Miss Awareness & Reporting which occurred on 19 January 2009 and after · Environmental Legal Compliance (NEQS) that ARL worked for 4.7 Million man hrs · Process hazard Analysis techniques without Loss time injury till 20th January 2010 · Hazardous waste Management and successfully achieved its corporate Target. · Electrical area classification
TAIFR Year 2009-10 Year 2010-11 Year 2007-08 Year 2008-09 Target TAIFR 5 Target TAIFR .3 Target TAIFR. 12 Target TAIFR. 8 Closing TAIFR. 3.4 Current TAIFR. 2.1 Closing TAIFR. 9.3 Closing TAIFR. 5.1 No of incidents 16 No of incidents . 5 9.3 No of Incidents. 45 No of Incidents . 24
5.9 5.7 5.7 5.7 5.6 5.5 5.3 4.9 5.1 5.1 5.2 5.1
3.7 3.4 3.4 3.1 2.8 3.0 2.4 2.5 2.5 2.522.5 2.1 1.8 2 1.5 1.6 1.24
0
46 Sustainability Report 2010
Grease, and Phenolic compounds of effluent Environmental water. Monitoring ARL continued reporting the Environmental Performance data to Punjab Environmental Effluent Water Parameters Protection Agency (EPA) as well as Federal EPA Effluent water after treatment exit from in 2010 and all parameters remained within refinery is a combination of oily and non-oily National Environmental Quality Standards drains. The oily water from all over the refinery (NEQS). is first collected in equalization basin to Effluent Water Quality prepare feed for effluent treatment units. First of all the effluent water is treated in Slant Ribs pH value in the liquid effluent stream remains Coalescer (SRC) unit. From SRC the within NEQS limits of 6 to 9 throughout 2010. wastewater is treated in Dissolved Air The consistency of results are mainly due to Flotation (DAF) Unit. In DAF the effluent water the treatment of boiler blowdown water. is subjected to coagulation flocculation. DAF Chemical Oxygen Demand (COD) remained helps in reduction of Total Suspended Solids within NEQS due to implementation of Merox (TSS) and Chemical Oxygen Demand (COD) of Plant Spent Caustic Treatment project. the water. Total Suspended Solids (TSS) remained within Based on the requirements of Self Monitoring NEQS throughout 2010. and Reporting Tool (SMART) Phase I, instituted Rest of the parameters like temperature, by Pakistan Environmental Protection Agency, Biological Oxygen Demand (BOD), Oil & we are regularly monitoring 8 priority Grease and Phenol also remained within NEQS parameters namely; Effluent Flow, compliance limits. Temperature, pH, COD, TSS, BOD5, Oil &
pH Chemical Oxygen Demand (COD), ppm 10 250 9
8 200 7
6 150 5
4 100 3
2 50 1
0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Results 2009 Results NEQS Limit Min NEQS Limit Max 2010 Results 2009 Results NEQS Limit
Temperature, °C Flow, m3/h
3.5 70
3 60
2.5 50
2 40
1.5 30
1 20
0.5 10
0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Results NEQS Limit 2010 Results 2009 Results NEQS Limit 47 Sustainability Report 2010
Biological Oxygen Demand (BOD), ppm Total Suspended Solids (TSS), ppm
90 250
80 200 70
60 150 50
40 100 30
20 50
10
0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Results 2009 Results NEQS Limit 2010 Results 2009 Results NEQS Limit
Oil & Grease, ppm Phenol, ppm
12 0.12
10 0.1
8 0.08
6 0.06
4 0.04
2 0.02
0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Results 2009 Results NEQS Limit 2010 Results 2009 Results NEQS Limit
Nitrogen Oxide (NOx), mg/Nm3 Particulate Matter mg/Nm3
700 350
600 300
500 250
400 200
300 150
200 100
100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Results 2009 Results NEQS Limit 2010 Results NEQS Limit
Sulfur Dioxide (SOx), mg/Nm3 Carbon Monoxide (CO), mg/Nm3
1800 900
1600 800
1400 700
1200 600
1000 500
800 400
600 300
400 200
200 100
0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Results 2009 Results NEQS Limit 2010 Results 2009 Results NEQS Limit 48 Sustainability Report 2010
ARL Environmental Plans
l 100 % Compliance to l Up gradation of slop oil l NEQS Compliance at National collection system Plant level Environmental Quality Standard (NEQS) for l Oil recovery from Heavy l Construction of concrete V effluent Water Crude unit Desalter drain channel from i effluent water at plant refinery to soan river in l NEQS revision for NOx battery limits coordination with Local t level for Oil Fired a Reciprocating Engine l Conservation of Water government l Power Plants consumptions at Plants l Development of ARL's l International conference image as most l One week program on on latest trends in safety, Refinery Energy Environment friendly Environmental refinery. Conservation Engineering
S i g l Development of l Green Plan for plantation alternative Energy n of half million saplings in i l Development of resources like Solar Morgah area Environmental Inventory energy for Morgah f Gardens Lighting i l Conservation of Potohar and Accounting System region Flora at Morgah l Wind Energy application c Biodiversity Park l Individual plants green house gaseous emission l Hardware development a l Development of n inventory for efficient use and Constructed Wetland in conservation of raw t Morgah Biodiversity Park material
N l Assistance to o l Determination of plants National Cleaner t l Remodeling of ARL's Production Foundation & tanks environmental existing solar water e load on final effluent for development of fully heater design to reduce treatment plants. Oil & w its cost of construction automatic Incineration grease control at plant facility through o l Closed loop sampling r l Local industries systems at plants to International technical as t assistance for minimize Hydrocarbon well as financial Environmental testing emission assistance h services. y l To achieve green industry l Morgah Club Swimming l Solid Waste status from Pakistan EPA pool heating through management Solar water heaters
Short Term 1-2 years Medium Term 2-5 years Long Term 5 years
49 Sustainability Report 2010
GRI Environmental Performance Indicators
Aspect: Materials Rating Code Description Response
Crude Oil = 1,743,987 bbls Electricity = 34,532,136 KWH Steam = 143,630 Ton Core EN1 Material use by weight or volume Fuel Gas = 2,695,577 MCF Fuel Oil = 23,231 BBL Water = 283.3 Million Gallons
Oil = 2,332.75 M. Tons in FFO Percentage of materials used that are Core EN2 Water = 3 to 4% of the total effluent recycled input materials water
Aspect: Energy
Electricity 34,532,136 KWH Direct energy consumption by ARL Purchased + Plants off gases Core EN3 3 primary energy source 2,695,577 ft Fuel Oil = 23,231 BBL
Electricity 34,532,136 KWH Indirect energy consumption by ARL Purchased + Plants off gases Core EN4 3 primary source 2,695,577 ft Fuel Oil = 23,231 BBL
1 Reduction in Fuel Gas consumption due to minimization of Hydrogen Rich Gas Flaring (New HBU-I Burner Tips) = 1,556,074 Energy saved due to conservation lb/year Add EN5 and efficiency improvement 2 Furnace Oil consumption reduction by Steam Production Minimization at Boilers = 9,926,379 lb/year (From 1997 Todate)
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Aspect: Energy Rating Code Description Response
Initiatives to provide energy-efficient Installation of Solar Water Heating or renewable energy based products Panels at ARL Core EN6 and services, and reductions in energy requirements as a result of Reduction in CO2 emission achieved these initiatives. is 23.1 Metric Tons
Initiatives to reduce indirect energy CO2 emission control through electric Add EN7 consumption and reductions power reduction = 0.49 KWH/BBL achieved.
Aspect: Water Rating Code Description Response
Drinking Water = 134.24 Million Gallon Fire Water = 22.15 Million Gallon Boiler Water = 92.3 Million Gallon Miscellaneous* = 34.00 Million Add EN8 Total water withdrawal by source Gallon Total Water Withdrawal = 282.69 Million Gallon * Garden water, private connections, Power Plant, Reservoirs Makeup
No water sources are affected by ARL water withdrawal due to following reasons: 1 The water withdrawal is less than 5% of the mean annual flow of the Water sources significantly affected Add EN9 water body. by withdrawal of water. 2 It does not pose any threat to the ecosystem i.e., different species of plant or animals. 3 The area is not proclaimed conservation area.
Percentage and total volume of water Add EN10 Percentage = 3 to 4 % recycled and reused.
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Aspect: Biodiversity Rating Code Description Response
Location and size of land owned, 28 Acres of land has been allocated by leased, managed in, or adjacent to, ARL for Morgah Biodiversity Park. This Core EN11 protected areas and areas of high park is established to conserve biodiversity value outside protected biodiversity of Potowar region. areas.
Description of significant impacts of activities, products, and services on Significant impacts of ARL operations Core EN12 biodiversity in protected areas and on biodiversity are localized and short areas of high biodiversity value term. outside protected areas.
Add EN13 Habitats protected or restored Protected up to maximum extent.
Strategy: Conservation of Biodiversity Current Action: Ex-situ conservation of floral & faunal biodiversity of Potowar region at Morgah Biodiversity Park (MBP) In progress Future Plans: 1 Construction of wetland at MBP for aquatic Biodiversity Strategies, current actions, and conservation of Potowar region is Add EN14 future plans for managing impacts on in progress. biodiversity. 2 Nursery and reserve bank development of indigenous species. 3 Deforestation minimization in the area 4 Afforestation under green plan project (President Mass Aforestation Scheme). Average 12,000 plants are being planted annually. 5 Community mobilization at grass root level to create awareness.
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Aspect: Biodiversity Rating Code Description Response
There is no IUCN Red List species and Number of IUCN Red List species and national conservation list species national conservation list species with habitats in the areas of Add EN15 with habitats in areas affected by operation. However, ARL has operations, by level of extinction risk. conserved 46 species of Potowar area in MBP at Morgah.
Aspect: Emissions, Effluents and Waste
Total direct and indirect greenhouse Total direct and indirect CO2 emission Core EN16 gas emissions by weight. = 641,145 M Ton
Other relevant indirect greenhouse Core EN17 Nil gas emissions by weight.
1 Reduction in CO2 emission due to minimization of Hydrogen Rich Gas Flaring (New HBU-I Burner Tips) = 1,451 M. Ton/year 2 Steam Conservation at Boilers = 14,917 M.Ton/year (From 1997 Todate)
3 Reduction in CO2 emission achieved due to installation of Solar Water Initiatives to reduce greenhouse gas Add EN18 Heating Panels at ARL = 23.1 emissions and reductions achieved. M.Ton/year
4 CO2 emission control through electric power reduction = 2,616 M.Ton/year
Total CO2 Reduction = 19,007 M.Ton/year ARL initiatives on Energy Conservation can be viewed on our website: http://www.arl.com.pk/downloads/A RL_Energy_Projects.xls
53 Sustainability Report 2010
Aspect: Emissions, Effluents and Waste Rating Code Description Response
Purchase of all equipment using ozone-depleting substances is discontinued on September 3, 2004 as a matter of policy. However, old equipment with CFC gas is still in use Emissions of ozone-depleting Core EN19 and their inventory is maintained. substances by weight. R12 Refrigerant Gas used in 2010 = Nil R12 Refrigerant Gas used in 2009 = 6.5 Kg Reduction = 100%
NO, SO, and other significant air Air emissions are given in detail in Core EN20 emissions by type and weight. section “NEQS Compliance”.
Total water discharge as well as the quality of effluent water is discussed Total water discharge by quality and in detail in section “NEQS Core EN21 destination. Compliance”. Final destination of the effluent water is River Sohan.
Hydrocarbon Sludge = 9,490 Kg Asbestos = NIL Oily Rags for Incineration= 4,040 Kg MS Scrap = 84,220 Kg Used Tank Plates = 3,750 Kg Mics Scrap = (by lot) Fire Wood = 39,095 Kg Total weight of waste by type and Core EN22 PPD Drums = 7,250 Kg disposal method. Electric Poles = 2,420 Kg Packing Wood = 39,095 Kg Plastic Drums = 2,710 Kg Polythene Bags = 475 Kg Paper waste for incineration=100 Kg Hospital waste for incineration = 3,344 Kg
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Aspect: Emissions, Effluents and Waste Rating Code Description Response
Total Number of Hydrocarbon Spills = 7 Major = 5* First Spill Volume = 1 Barrels LSFO Second Spill Volume = ½ Barrels Total number and volume of Crude Oil Core EN23 significant spills. Third Spill Volume = 1 Barrels Crude Oil * Over 10 liters of spillage is categorized as Major Minor = 2 Total Number of Chemical Spills=NIL
Weight of transported, imported, Asbestos = NIL exported, or treated waste deemed No waste material was exported hazardous under the terms of the No hazardous waste as per Basel Add EN24 Basel Convention Annex I, II, III, and Convention was generated. VIII, and percentage of transported Hospital Waste=3,344 Kg waste shipped internationally. (Incinerated) Identity, size, protected status, and ARL effluent water moving out of biodiversity value of water bodies and refinery premises has no significant Add EN25 related habitats significantly affected impact downstream on the by the reporting organization's biodiversity value of water bodies and discharges of water and runoff. related habitats. Aspect: Products and Services
Initiatives to mitigate environmental 1 Merox Unit Spent Caustic impacts of products and services, Treatment to meet COD and pH and extent of impact mitigation. specifications 2 Boiler Blowdown Water Treatment to control pH value of final effluent 3 Burner Tips Replacement at HBU-II Distillation Unit to reduce NOX, Core EN26 SOx in the flue gases and Noise 4 Removal of sludge from API separators and C-Sump 5 In-Plant Treatment of Effluent Water to control COD of effluent water 6 RCC lying of wastewater channel 7 Storm water segregation 55 Sustainability Report 2010
Aspect: Products and Services Rating Code Description Response
Percentage of products sold and their ARL products sold in bulk. Asphalt packed Core EN27 packaging materials that are in drums is recyclable. reclaimed by category.
Aspect: Compliance
Monetary value of significant fines and total number of non-monetary Monetary Fines = Nil Core EN28 sanctions for noncompliance with Non-Monetary Fines = 2 environmental laws and regulations.
Aspect: Transport
Crude oil and products are transported by carriage contractors. However, as socially responsible Significant environmental impacts of company we always volunteer for transporting products and other bioremediation of hydrocarbon goods and materials used for the Add EN29 spillages anywhere in Pakistan. organization's operations, and In year 2010 four (4) oil spillages are transporting members of the treated with bioremediation workforce. technique. For Example, near Chowk Azam Sardargarh, Munda Morr Dhoke Pathan etc.
Aspect: Overall
Strom Water Segregation = 10 million Incineration = 0.1 million (for maintenance) EIA/IEE Studies = 0.24 million Spent Caustic Treatment = 0.1 Total environmental protection million Add EN30 expenditures and investments by Boiler Blow down Water diversion = type. 2.5 million DAF Units standby pumps = 4.8 million ARL green plan = 0.6 million Total Environmental Protection Expenditures = 18.34 million
56 Sustainability Report 2010
Chapter 5
ARL Economic Performance
57 Sustainability Report 2010
ARL Economic Initiatives vs. Sustainability
On behalf of the Board I am pleased to welcome our esteemed shareholders to the 32nd Annual General Meeting of the Company and to present annual review of the financial year ended June 30, 2010.
Chairman Business Review refinery operation. However, after according The prices of crude oil after remaining for other income of Rs. 983 million the net loss unstable in year 2008-09, some what from refinery operation came down to Rs. 476 stabilized during the year 2009-10 as it million. Due to your Company's prudent policy fluctuated within the range of US$ 70 to US$ in diversifying its investment in oil market, 87/barrel. The petroleum product prices also refinery sector and power sector, your fluctuated accordingly in-line with the crude company earned non refining income oil prices, though there was a time lag to catch amounting to Rs. 602 million that resulted in a up with the crude price. net profit of Rs. 126 million for the year. With the unilateral withdrawal of guaranteed Regretfully, the Government although having return to the refineries in 2002-03 and deliberated upon various option has still not subsequent changes made from time to time been able to finalize the refineries pricing in the import parity pricing formula with formula that could pull out the refineries from respect to irrational pricing mechanism for its current adverse financial condition and motor gasoline (PMG), your company for the ensure continued operation on self first time in its history suffered this year is a sustainable basis. Unfortunately, the issue of huge loss of Rs. 1165 million from its core circular debt which is prevailing in the oil 58 Sustainability Report 2010
industry for more than 2 years has further However, initially the first two projects would aggrieved and poses serious threat to the be taken up for implementation. petroleum sector companies in carrying out Gross Refiner's Margin ($ per barrel) 4.86 their day to day operations. Unless this issue is resolved on a priority basis it would ultimately 2.66 lead to an imminent closure and suspension of 2.27 1.92 supplies. Despite assurances from the highest 0.80 Government authorities the company 2006 2007 2008 2009 2010 receivables from its trade debtors and more Your Company expects that its initiative to particularly Pakistan state Oil Company implement these projects would be Limited (PSO) has increased from Rs. 9.5 recognized as positive steps in meeting the billion in last year to over Rs. 24.7 billion that is country's requirements and expectation from not only hampering its operations but has also the petroleum sector and that the led to defaults in making payments to its crude Government shall respond by providing suppliers. necessary incentives in the petroleum products pricing formula as well as facilitating Business Risks, Challenges and future the implementation of these projects. Outlook Employee Relations Besides financial challenges mentioned above The management and employee relations your company's also confronted with continued to remain cordial and have challenges arising from increased crude oil provided a friendly atmosphere at work place. availability in the northern region as well as I appreciate the efforts and dedication of the future changes in product specifications offers, staff and workers of the company who warranted by environmental considerations. enabled the management to run the affairs of The Companies Board of Directors and the Company smoothly and efficiently under management remain alive to these challenges extremely challenging circumstances. and while actively working to pull the Acknowledgment Company out from financial stress caused by pricing formula revision and circular debt, the On behalf of the Board, I appreciate the Company is considering implementation the continued support received from our following projects for which initial studies and shareholders and other stakeholders including engineering designs have been completed: the Ministry of Petroleum & Natural Resource and express m gratitude to our valued (a) Pre-flash unit that shall enhance the customers, crude oil suppliers and contractors refining capacity by 10,400 per day. for their continued cooperation. (b) An Isomerization unit that shall Further, I would also like to tank my colleagues upgrade the RON contents of motor on the Board, both present and outgoing, and gasoline as well as reduce benzene and record my appreciation of the services and aromatics content. contribution of the Directors Committees of (c) A Diesel Hydro Desulphurization unit the Board. (DHDS) to reduce sulphur contents in HSD to meet Euro standards. 59 Sustainability Report 2010
Statement of Compliance for Attock Refinery corporate strategy and significant policies Limited for the period ended June 30, 2010 of the Company. A complete record of This statement is being presented to comply particulars of significant policies along with the Code of Corporate Governance in the with the dates on which they were listing regulations of Karachi, Lahore & approved or amended has been Islamabad Stock Exchanges for the purpose of maintained. establishing framework of good governance, (7) All the power of the Board have been whereby a listed company is managed in duly exercised and directors on material compliance with the best practices of transaction. Including appointment and corporate governance. terms and conditions of employment of The Company has applied the principles the CEO and other executive directors are contained in the code in the following manner: taken by the Board. (1) The Company encourages representation (8) The meetings of the Board were presided of independent non-executive directors over by the Chairman and the Board met and directors' representing minority least once in every quarter. Written interests on its Board of Directors. At notices of the Board meetings, along with Present the Board companies of seven agenda and working papers, were non-executive directors of whom three circulated at least seven days before the are independent directors representing meetings. The minutes of the meetings minority share holders. were appropriately recorded and (2) None of the directors is serving as a circulated. director in more than ten listed (9) The directors were appraised of their companies, including this company unless duties and responsibilities through specifically exempt. various in house orientation courses. (3) All the resident directors of the company (10) The directors' report for this year has are registered as taxpayers and none of been prepared in compliance with the them has defaulted in payment of any requirements of the Code and fully loan to a banking company, a DFI or an describes the salient matters required to NBFI or being a member of a stock be disclosed. exchange, has been declared by that stock (11) The financial statements of the Company exchange. were duly enclosed by CEO and CFO (4) No casual vacancy occurred on the Board before approval of the Board. during the Year. (12) The directors CEO and executives do not (5) The Company has prepared a 'Statement hold any interest in the shares of the of Ethics and Business Practices; which Company other than that disclosed in the has been signed by all the directors and pattern of shareholding. employees of the Company. (13) The Company has complied with all the (6) T h e Board has developed a corporate and financial reporting various/mission statement. Overall requirements of the Code.
60 Sustainability Report 2010
(14)The Board has formed an audit committee (19) All material informed as required the it comprises of 3 members all non- relevant rules has been provided to stock executive directors including chairman of exchange and to the Securities and the committee who is an independent Exchange Commission of Pakistan within non-executive directors. the prescribed time limit. (15)The meeting of the audit committee were (20) All related party transactions entered held at least once every quarter prior to during the year were at arms length basis approval of interim and final results of the and these have been placed before the company and as required by the Code. audit Committee and Board of Directors. The terms of reference of the committee These transactions are duly reviewed and have been formed and advised to the approved by the Audit Committee and committee for compliance. Board of Directors. (16)The board has set-up an effective internal (21) We confirm that all other material audit function comprising of persons who principles contained in the Code have are considered suitably qualified and been duly complied with. experienced for the purpose and are conversant with policies and procedures of the and they are involved in the internal audit function on a full time basis. (17)The statutory auditors of the company have conformed that they have been given a satisfactory rating under the quality control review program of the institute of Chartered Accountants of Pakistan , that they are any of the partner of the firm, their spouses and minor children do not hold shares of the company and that the firm and all its partners are in compliance with international Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountant of Pakistan. (18)The statutory auditors of the persons associated with them have not been approved to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. 61 Sustainability Report 2010
ARL Lst a Fi v e Yea rs Fia n nci a l Sum ma ry
30 June (Rupees in Million)
TRADING RESULTS 2010 2009 2008 2007 2006 Sales (Net of Govt. Levies) 88,184.03 76,546.45 91,910.70 59,108.53 55,828.14 Reimbursement from/(to) Government - - - - - Turnover 88 184.03 77 260.50 93 654.30 59 463.92 56 062.37 41 Cost of Sales 88 693.69 75 342.10 89 646.37 58 597.69 55 490.68 39 Gross profit / (loss) (509.66) 1,918.40 4,007.93 866.24 571.69 Administration and Distribution cost 270.12 243.63 218.47 191.82 197.08 Other Income 983.33 993.70 577.85 635.17 627.08 Non-Refinery Income 602.20 610.74 4140.20 244.65 223.19 Operating profit 805.75 3279.22 8507.51 1554.23 1224.89 Financial and other charges 385.54 1595.84 1480.08 384.70 566.34 Profit before tax 420.21 1683.37 7027.43 1205.53 658.55 Taxation 293.82 666.61 879.65 456.55 354.84 Profit after tax 126.39 1016.76 6147.77 748.98 303.71 Dividend - - (268.52) (227.45) - Bonus shares - - (142.16) (142.16) (113.72) Transfer from/(to) special reserves 475.81 (260.22) (1861.77) (358.53) - BALANCE SHEET SUMMERY Paid Up Capital 852.93 852.93 710.78 568.62 454.90 Reserves 8563.31 4719.92 8330.34 2828.89 2392.36 Unappropriated Profit 857.27 4574.28 657.88 381.15 182.42 Share holder Funds 10273.52 10147.13 9698.99 3778.66 3029.68 Financing facilities - - - - - (Long Term Including Current Portion) - - - - 3410.25 Property, Plant & equipments (less Depreciation) 2868.00 2916.21 2929.65 2968.13 3243.95 Net Current Assets (3967.43) (4166.56) (4578.05) (6610.38 (2440.47) Cash Flows from operating activities (3741.38) (11543.76) 11074.23 5676.88 4092.10 Cash Flows from investing activities 1214.90 1434.62 443.62 89.08 (5686.16) Cash Flows Financing activities (308.97) (2037.95) 1471.19 4917.71) 4142.07 Increase / (Decrease) in Cash and Cash equivalents (2833.89) (12142.33) 10064.52 848.52 2551.01 KEY FINANCIAL RATIOS Gross profit / (loss)/ turnover (0.6) 2.5 4.3 1.5 1.0 Profit before tax / turnover ratio 0.5 2.2 7.5 2.0 1.2 Return on capital employed 1.2 10.2 91.2 23.2 10.3 Interest coverage (times) 2 2 7 6 2 Inventory turnover (times) 14.72 15.51 20.61 20.90 22.61 Debtors turnover (times) 4.83 8.16 13.50 13.41 15.35 Fixed assets turnover (times) 91.55 75.37 87.41 43.42 38.24 Debt : Equity ratio 00:100 00:100 00:100 00:100 48:52 Liquidity Ratios - - - - - Current 0.91 0.87 0.88 0.75 0.87 Quick Asset 0.75 0.70 0.74 0.58 0.66 SHARES AND EARNINGS Break-Up Value (Rs per share) without Surplus - - - - - On Revelation of Property, plant & equipment 120.45 118.97 136.46 66.45 66.60 Break-Up Value (Rs per share) with Surplus - - - - - on Revelation of Property, plant & equipment 143.00 141.52 163.52 100.28 108.88 Price earning ratio (times) 53.96 12.99 1.63 12.31 16.48 Earning (Rs per share)* 1.48 11.92 86.49 13.17 6.68 (on shares outstanding at 30 June) - - - - - Dividend - - 80% 40% - Bonus Shares Issue - - 20% 25% 25% Highest market value per share during the year 169.62 248.00 305.50 123.80 238.00 Lowest market value per share during the year 80.59 40.95 212.81 72.40 84.05 Market value per share 79.86 154.86 140.90 162.10 110.00 Cash dividend per share - - 8.00 4.00 - Dividend yield ratio - - 7.10% 4.01% 2.27% Dividend payout ratio - - 11.56% 49.35% 37.45%
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GRI Economic Performance Indicators Economic Performance Rating Code Description Response
Revenue: 88,184,026 Operating Cost: 88,893,686 Employee compensation: 445,000 Other community investments: Direct economic value generated and ARL is providing several community distributed, including revenues, operating services for the welfare of the people costs, employee compensation, donations Core EC1 living in the vicinity of the refinery and the and other community investments, total expenditure in this regard was Rs retained earnings, and payments to capital 4.68 million. Moreover, Attock Sahara providers and governments. Foundation's annual expenditure for the year 2009-10 was Rs 6.5 million Payment to Government as taxes: 21,450,000 All values are in (Rs. 0000)
Financial implications and other risks and No Significant risk and Financial implicate Core EC2 opportunities for the organization's due to climate change activities due to climate change.
ARL operates a pension plan for its Management staff and a gratuity plan for its Non Management staff. The pension plan is invested through an approved trust fund while the gratuity plan is a book reserve plan. Contributions are made in accordance with actuarial recommendation. Actuarial valuations are conducted annually using projected unit credit method. The obligation is measured at the present value of the estimated future cash outflows. Unrealized net gains and losses are amortized over the expected remaining service of current Coverage of the organization's defined member. Core EC3 benefit plan obligations. Further, there is an approved contributory provident fund for all employees to which equal monthly contribution is made both by the Company and the employee at the rate of 10% of basic salary. Company's expenditure on account of employees' retirement benefits during the financial year 2009-10 is as follows: All values are (Rs.'000) Staff gratuity benefits: 29,952 Staff Pension benefits: 24,584 Contribution to Employees old age benefits: 2,780 Workers Welfare Fund: 10,434
63 Sustainability Report 2010
Economic Performance Rating Code Description Response Government of Pakistan has no Significant financial assistance received shareholding in company. ARL has not Core EC4 from government. received any significant financial assistance in any form from Government of Pakistan. Market Presence Range of ratios of standard entry level wage ARL standard entry level wage: local Add EC5 compared to local minimum wage at minimum wage Rs. 15075: 7000 significant locations of operation. Policy, practices, and proportion of Add EC6 spending on locally-based suppliers at Non Applicable significant locations of operation. We don't offer any discriminatory practices Procedures for local hiring and proportion so far as hiring is concerned. Management of senior management hired from the local Core EC7 staff hiring is purely based on merit and community at locations of significant after going through a comprehensive operation. assessment process. Indirect Economic Impact
ARL continued with its policy of providing potable water to the surrounding population in the village of Morgah, Kotha Kalan, Jhamra & welfare organization like Development and impact of infrastructure SOS village, Deaf & Dumb School, other investments and services provided schools and mosques. Add EC8 primarily for public benefit through Similarly we provide free of cost electricity commercial, in kind or pro bono connection to union council Morgah and engagement. Kotha Kalan area including 15 schools and 26 mosques. Similarly, efforts are made to keep the area clean and roads in appropriate condition for the benefit of community without any financial benefit.
All the raw materials produced in Pakistan are treated as local. The Refinery processed 13.493 Million barrels (2009:13.126 Million barrels) of crude oil received from both northern and southern oilfields. The allocation of southern crude to the company is based on the national freight economics and foreign exchange savings as a result of processing this crude at Understanding and describing significant the Refinery. It has resulted in savings of Rs. Add EC9 indirect economic impacts, including the 176 million (2009:Rs. 100 million) in freight and extent of impacts. foreign exchange savings of US$ 54 million (2009: US$ 61 million) during 2009-10 and accumulated savings of over Rs. 2.875 billion and US$ 387 million respectively since commencement of these supplies from November 1997. Further the entire indigenous crude production from the northern region including enhanced production from certain fields continued to be processed at Refinery.
64 Sustainability Report 2010
Corporate Targets 2009-10
S. No. Description Unit Target Achieved
REFINERY OPERATIONS No of 1-a Unplanned Plant Shut Down 08 shutdowns Ensure crude availability subject to 1-b BPCD 41023 37550 Refinery economics 1-c Sale of 100% production % Progress 100 99 Possession of land around ARL existing 1-d Wells at Shahpur based on revised % Progress 100 100 application for acquisition of land VALUE ADDITION Protect the Refinery Pricing Formula and Impact 2-a Yes No Change Profitability (Yes/No) To ensure availability of optimum southern 2-b BPD 13000 9852 crude based on monthly economics 2-c Supply of Jet Fuels for Afghanistan M. Tons 72000 62519 2-d Production/Sale of PMG M. Tons 348000 347538 Refinery Upgradation project - Award of 2-e % Progress 100 0 contract for EPC Increase in Mid Distillates from 42% to 43% 2-f % Production 43 41 by volume (HSD, KERO & JET FUELS)
KNOWLEDGE COMPANY Implementation of enhanced version of 3-a % Progress 100 5 HRMS PERFORMANCE / COST OPTIMIZATION Throughput per day subject to refinery 4-a BPCD 41023 36982 economics 4-b Refining cost Rs/Bbl 135 145
4-c Refinery losses % Vol 0.98 0.93
4-d Naphtha Transportation & Storage Losses % 1.2 1.1 65 Sustainability Report 2010
S. No. Description Unit Target Achieved
Southern Crude Transportation & Storage 4-e % 0.6 0.6 Losses Telephone, fax & e-mail expenses 4-f Rs. "000" 2600 2687 (Communication Expenses) 4-g Staff traveling & entertainment Rs. "000" 3100 2570
4-h Fuel for Pool vehicles Kilolitre 55 55 Optimum Stores Inventory (excluding 4-i Rs. Million 560 522 CAPEX) 4-j Overtime hours for Regular Staff Hours 115000 127375
4-k Overtime hours for Outsourced Staff Hours 90000 105727
4-l Medical Rs. "000" 55000 52249
HUMAN RESOURCE Ensuring at least 40 hours training per 5-a Hours 40 9 annum for each Management staff Conduct of in-house training sessions 5-b No of sessions 24 26 (average two) each month Keep Employee turnover rate for 5-c % 10.5 12 Management Staff (Regular/Contract)
5-d CBA Agreement 2009-11 % Progress 100 100
HEALTH, SAFETY, ENVIRONMENT & QUALITY CONTROL Million man 6-a Safe Man Hours 4.5 4.68 hours Total Accidents / Incidents Frequency Rate per million 6-b 5 3.4 (TAIFR) hours Evaluation of water treatment technology NEQS 6-c 100 100 for Compliance of Non-priority NEQS Compliance Switching over from generalized Emergency 6-d Preparedness Plan to Scenario based % Progress 100 100 Emergency Plan CORPORATE IMAGE MANAGEMENT
7-aSustainability Report Award by ACCA/WWF Distinction 1st Position 1st Position 66 Sustainability Report 2010
Chapter 6
Credibilty
67 Sustainability Report 2010
Third Party Assessor's The management review process demonstrated capability to ensure the Statements continuing suitability, adequacy and effectiveness of the management system. Statement from SGS Pakistan (Pvt.) Limited for ISO 9001 & ISO 14001 on October 11-13, Throughout the audit process, the 2010 and OHSAS 18001 Management management system demonstrated overall Standards on November 25-26, 2010 conformance with the requirements of the audit standard. The management system documentation demonstrated conformity with the Statement from M/S A. F. Ferguson & Co. for requirements of the audit standard and Audit of Financial Accounts June 30, 2010 provided sufficient structure to support In our opinion, the consolidated financial implementation and maintenance of the statements present fairly the financial management system. position of ARL and its subsidiary company as The organization has demonstrated effective at June 30, 2010 and the results of their implementation and maintenance / operations for the year then ended. improvement of its management system. Statement from Pakistan National Accreditation Council for ISO/IEC 17025 The organization has demonstrated the th rd establishment and tracking of appropriate key November 2 & 3, 2010 performance objectives & targets and The laboratory complies with the conditions monitored achievement progress. of ISO/IEC 17025 accreditation and The internal audit program has been fully recommended for continuation of quality implemented and demonstrates effectiveness control laboratory management system to improve management system. accreditation.
68 Sustainability Report 2010
Memberships in Industry and Business Associations ARL is a member of the following government and non-government organizations and agencies: 1. Islamabad, Lahore and Karachi Stock Exchange 2. Oil Company Advisory Committee (OCAC) 3. Federation of Pakistan Chambers of Commerce and Industries (FPCCI) 4. Overseas Investors Chamber of Commerce and Industries (OICCI) 5. Rawalpindi Chamber of Commerce and Industries (RCCI) 6. Petroleum Institute of Pakistan (PIP) 7. Pakistan Standards and Quality Control Authority (PSQCA) 8. Management Association of Pakistan (MAP) 9. Employer's Federation of Pakistan 10.Trade Development Authority of Pakistan (TDAP) 11.National Fire Protection Association (NFPA), USA 12.Fire Prevention Association of Pakistan 13.Pakistan Alliance Against Sexual Harassment (AASHA) 14.CSR Association of Pakistan 15.Alternative Energy Development Board 16.Association of Certified Chartered Accountants (ACCA) 17.Key Point Installation Division (KPID), Ministry of Interior 18.Japan Cooperation Center Petroleum (JCCP) 19.Nippon Keidanren International Cooperation Center (NIC) 69 Feedback Form Your comments and suggestions are invited Please fill and deliver this leaf to your nearest OCS (Overseas Courier Services) ARL Center, who will deliver this to us on our expanse
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ARL
Manager (HSEQ) ATTOCK REFINERY LIMITED. P.O. REFINERY MORGAH RAWALPINDI PH: +92-(0)51 548 70 41 Sustainability Report 2010
7th Annual Environmental Excellence Award 2010 (NFEH)
1st Global HR Recognition Best Sustainability Report Award 2010 (GML & BPF) Award 2009 (ACCA & WWF) 72 ARL
ATTOCK REFINERY LIMITED Refinery P.O. Morgah, Rawalpindi, Pakistan Tel: 92 51 5487041-5, Fax: 92 51 5487254 E-mail: [email protected], Web: www.arl.com.pk