Dana Petroleum

Health, safety and environmental performance

Monitoring against Dana’s HS&E commitments

To promote safe operations and manage HS&E risk Dana actively conducts focused management visits, training, internal and contractor compliance audits and planned inspections. The use of safety observations systems in identifying risk or hazards is recognised as a vital tool in preventing incident and accidents from occurring through intervention and building a positive safety culture.

HS&E is considered a critical business function. Accountability for HS&E lies with me and I authorise all Group HS&E Policies and Procedures. Responsibility for HS&E is delegated to Country Managers and Asset Managers, who are supported by local and Group HS&E Personnel.

 

Corrective and preventative measures

As a result of all incidents and near misses reported for 2009, details of the key lessons learned and corrective measures in preventing further occurrence are provided within each of the country office HS&E summaries that follow:

UK

During 2009 Dana experienced a number of incidents which resulted in office personnel being injured through slips, trips and falls. Although no long term or serious injuries were sustained, the five incidents which occurred were considered serious due to the high potential consequences. Mitigation measures taken as a result included ensuring safe access to and from buildings, especially during winter weather; communication of hazards, facility tours for all new staff and contractors, and installation of new signage.

For those high risk operations undertaken in the UKCS, positive HS&E performance was delivered with no authority reportable incidents for drilling or dive support intervention campaigns; and full compliance with all HS&E legal requirements and required operated permits and consents.

During drilling of South East Rinnes a trial of new innovative technology for cuttings handling was undertaken, involving close liaison with drilling rig owners, vendors and DECC. Such onboard cuttings handling systems have the potential to reduce energy consumption during drilling operations and to reduce the use of chemical additives required in processing, resulting in cleaner discharges significantly below permitted consent levels. It is hoped this technology will be implemented for future campaigns.

In May 2009, Dana responded to a reported subsea hydrocarbon release from the Hudson asset. The release occurred while the field was temporarily shut-in during Tern platform operations. Following analysis of diagnostic signals the leak was quickly isolated, minimising losses to sea. Subsequent inspection showed the leak to be the result of a failed weld. Preventative measures taken included, revised guidance for shutting in the field, revised guidelines for monitoring field signals and a review of onshore response procedures and plans. Full inspection of the pipework has been conducted during three subsequent inspection visits to the field. All regulatory authorities and statutory bodies were informed of the incident in a timely manner and Dana has worked closely with these to ensure compliance. The failure was remedied within 15 days, allowing the field to safely return to production.

Egypt

Despite maintaining the high priority and focus assigned to vehicle safety, concerns remain given a total of 21 vehicle incidents reported in 2009. The majority were low impact and without serious injury. However the more severe of these include a tanker roll over and a head on collision at moderate speed, both occurring within the vicinity of the East Zeit Base. Steps taken to reduce road transportation have been supported with the re-opening of the base airstrip, now used for crew changes and Cairo visits to the base. Driver training for all Dana employees has been increased and a driver policy manual has been developed locally to communicate Company standards and expectations as well as advise on safe driving practices.

A significant number of incidents were experienced during the hydraulic workover campaign on Platform A, East Zeit. In response, Dana increased supervision on the unit and held a safety time out to communicate the standards and expectations for the campaign to all personnel involved.

Norway

In 2009, Dana was only engaged in nonoperated production and drilling activities on the Norwegian Continental Shelf, although as a pre-qualified operator the Company ensured that implementation of the HS&E plans and procedures, as well as required training, was fully undertaken. This included increased liaison during partner operations, relevant safety forums and the execution of several operator audits, Dana is now well positioned to ensure that best practices are implemented in the business. An end of year audit against implementation of Dana’s HS&E Management System was passed without any non-conformity remarks by the audit team.

International

Following the planning and construction project phases started in 2008, Dana completed onshore drilling of the TAJ-1 well at Bouanane in Morocco. Pre-planning identified a number of high risk HS&E activities associated with the location remoteness and the related transportation, logistics and security issues. The TAJ-1 well involved significant effort in delivering a positive HS&E performance resulting in no lost time or environmental incidents. Unfortunately during the campaign five medical treatment cases were experienced. As a result contractor interface and communication of safety priority was increased by on-site client representatives. This was further reinforced during Dana senior management visits and through active implementation of safety observations and inspections.

To manage any associated environmental impact, a thorough site clean-up operation followed the completion of the well and road construction. Following identification of unmapped perceived burial mounds along the route to the well, Dana is maintaining liaison with archaeological advisories and the State to encourage that such mounds are mapped and considered as cultural elements within future environmental impact assessments.