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Driving health, safety and environmental performance

We are focused on becoming an industry leader in health, safety and environmental (“HSE”) practices across all our operations, with the intention of minimising the Group’s impact on the environment and providing safe and healthy working conditions for all our employees.

We are focused on becoming an industry leader in HSE practices across all our operations, with the intention of minimising the Group’s impact on the environment and providing safe and healthy working conditions for all our employees.

The Group’s HSE Policy, based on its seven guiding principles, was approved by the Board during 2015.

Overview of the Group’s HSE Policy

The policy outlines the standards to be adhered to across the Group and also affirms the Group’s commitment to upholding HSE standards wherever it conducts its business activities.  The policy will serve to guide the implementation of HSE processes and procedures across the Group.

Standard operating procedures will be developed and reviewed where they exist for alignment with the Group’s standards and the legislative and regulatory frameworks of the jurisdictions in which the Group pursues its business interests. This is to ensure compliance with all HSE standards and will enable accurate reporting on HSE matters.

Health and safety

In pursuit of its values SacOil will strive towards ensuring that the health and safety of its employees and the communities in which it operates remain a primary concern. It is expected that employees respect and protect the environments in which they operate and ensure the highest standards of quality with regards to products and services.

The leadership of SacOil is committed to providing a clean, safe and healthy work environment for all its employees and service providers and will discharge its function with care and respect for people and the environment.  Management takes decisions with due regard for the long-term sustainability of the business and the environments in which the Group operates.

Employees have the responsibility for maintaining a safe and healthy workplace by following health and safety rules and practices; and reporting accidents, injuries and unsafe conditions, procedures or behaviours. The adherence to health and safety standards is non-negotiable. Non-adherence is subject to appropriate measures of consequence management.

All employees of the Group undergo safety training and regular refresher programmes are conducted. The same obligations rest with our contractors who conduct safety training upon engagement and before the commencement of operations. All teaching is based on the premise that every person is responsible for his/her own safety and awareness of potential danger is stressed.

Environment

The Group is committed to minimising its impact on the environment and aims to preserve limited water resources, reduce pollution and maintain the natural aesthetics of the environment. Rehabilitation programmes remain key commitments.

Management ensures compliance with local environmental laws and regulations in the countries in which the Group operates, but will also ensure that the Group complies with global best practice where such practice requires compliance with a higher standard.

Egypt

The Group undertook an extensive development programme in Egypt at the Lagia Oil Field without incident. This included hydraulic stimulation, steaming and drilling of new wells. The absence of incidents was due to excellent diligence with regard to HSE matters by all staff, service providers and contractors.

Botswana

The Group commenced an  environmental and social impact assessment (“ESIA”) on its Botswana asset in the current financial year to ensure that the exploration activities planned by the Group are undertaken in an environmentally and socially acceptable manner. A local environment management company employing local labour is being used to support the process. To date the Company has received environmental clearances for all three regions in which it has concessions.

Malawi

The Group also undertook an environmental and social impact assessment of its Malawi asset in the current financial year to ensure its exploration activities are also undertaken in line with the Group’s principle of operating responsibility.  Final approval of the ESIA project brief is awaited.

The seven guiding principles of the HSE Policy

Compliance and standards

  • Focus to not only comply with, but also to exceed where possible, all applicable HSE  laws and regulations
  • Compliance with all internal standards
  • Consistency with generally accepted environmental practices and established industry codes of practice

Reporting and monitoring

  • Regular evaluation and monitoring of the impact of past and present business activities on HSE matters
  • Adequate reporting of HSE matters to SacOil’s Board of directors quarterly

Continuous improvement

  • Use of innovative design and engineering to reduce the environmental impact of each of the Group’s operations throughout the asset’s life cycle
  • Efficient use of natural resources, including energy to minimise waste streams and emissions

HSE Performance for the year under review

There were no reportable breaches of environmental standards during the past financial year.

1   Accident/Incident Frequency

Performance
  Target Achieved
Injuries 0% 0%
Fatalities 0% 0%

2   Project Management

As previously reported, the Group undertook extensive hydraulic stimulation, steaming and drilling projects without incident.

3   Environmental Incidents

The Group distinguishes between major and minor environmental incidents. A major environmental incident would be where rehabilitation and restitution would be required. All other incidents are categorised as minor.

 

2014/2015 2015/2016

Minor environmental incidents

Major environmental incidents

The intention of management is that all exploration, development or production sites have a zero accident frequency rate. The Group’s performance is in line with these targets.

HSE Reporting system

As previously reported, accident and incident monitoring mechanisms are in place. The Group is also undertaking a review of its HSE processes to ensure compliance with the HSE policy and standards.  Quarterly HSE updates are provided to the Social and Ethics Committee.

Focus areas for 2016/2017

As part of continuous improvement the following activities will be undertaken in the next financial year:

  • Implementation of ISO 31000 to further enhance the Group’s total quality management approach and activities
  • Accident monitoring and prevention programmes will be further enhanced
  • Reassessment of the benefits of joining the UN Global Compact
  • Improvement of Group-wide standard operating procedures for alignment with the local legislative and regulatory frameworks in Egypt