Annual Report 2010

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CORPORATE RESPONSIBILITY have occurred), the Company also tracks leading indicators such as Near Misses with High Potential. The importance of leading indicators is that they throw a light on potential problems areas and enable the Company to take pro-active measures to avoid them from developing into incidents. Environmental KPIs The environmental indicators that have been reported on a monthly basis since 2004 are oil spills beyond 1 barrel and, since 2009, chemical and hydrocarbon leaks over 1m3. In addition, operated assets report greenhouse gas emissions (CO2, NOX, SOX, CO, N2O, CH4, nmVOC) on a yearly basis. HSE 2010 Key Performance Indicators (KPIs) Lundin Petroleum had an ambitious work programme in 2010 with sustained exploration and production activities throughout the Group. In accordance with Lundin Petroleum’s HSE Reporting Requirements, accidents and incidents involving people or the environment were noted, investigated and reported to corporate, both on an ad hoc basis, for cases requiring immediate attention, and on a monthly basis. The severity of the incidents was limited insofar as none had a permanent impact on the injured party or on the environment, however, their number has given rise to concern and action by corporate and country management in the relevant areas, as per below. Group HSE KPIs were as follows: Zero fatality among operated and non-operated assets There have been no fatalities among staff or contractions in Lundin Petroleum’s operated and non-operated assets since the Company’s creation in 2001. Four Lost Time Incidents (LTI, two staff, two contractors) » France (2 LTIs): a recently hired staff injured his hand while trying to recover tubing; he was granted five days off. The second LTI involved the driver of a trucking contractor who injured his ankle while stepping out of the truck; he was off work for 32 days. » Russia (1 LTI): a company driver was involved in a car accident through no fault of his own and was granted 5 days off. » Indonesia (1 LTI): twelve contractor staff in the Rangkas seismic camp suffered from abdominal pain.One was held overnight at the hospital (LTI), while eleven were given medical treatment at the camp clinic (MTIs). The investigation showed that the water well in the field camp was contaminated with e-coli. Further incidents occurred in relation to the seismic acquisition in the Rangkas Block which prompted a full review and field trip by corporate and country management in order to redress the campaign’s poor HSE practice and performance (see below under Comparison 2009-2010 HSE KPIs). Seven Restricted Work Incidents (RWI, all contractors) » France (1 RWI): an operator injured his hand during the cleaning of tubing. Medical assistance was provided and the operator was able to perform other tasks on the following day. » Indonesia (6 RWI): three contractor staff used the wrong tool to repair a piece of equipment; they received medical treatment and were given alternative tasks, though the wounds were minor. The second incident involved water contamination in a camp in the Rangkas Block. Seventeen Medical Treatment Incidents (MTI, all contractors) » UK (2 MTIs): one was a knee injury (on the Thistle platform) and the second an ankle injury (on the Heather platform); both staff were able to resume their normal activities after medical treatment. » Indonesia (15 MTIs): fourteen cases were due to the water contamination events described above while one was due to the improper handling of tools. One oil spill (10 m3) » France (1 oil spill): the cause of the spill in the Soudron production site was a disconnected 4” fiber pipe at the elbow level. The spill was fully contained on the production site by the intervention of the personnel on call, and was fully cleaned up with the help of Company and contracted personnel within the week. Several controls conducted in the following months confirmed the absence of hydrocarbons. One chemical spill (7.7 m3) » UK (1 chemical spill): the case involved an ongoing leak on the Broom pipeline system that resulted in discussions with the regulator to find an appropriate solution. Three Near Misses with High Potential » Tunisia (1 NMHP): a person took a sip from a half-litre water bottle filled with anti-freeze that had been left unlabeled. No liquid was swallowed and thus no injury sustained. » France (2 NMHPs): flexible tubing detached from the pipe installation during the start-up of a new water injection system. A thorough investigation took place which identified three causes, all of which were related to the malfunction of equipment. A security cable prevented this NMHP from resulting in a personal injury. The second case involved the partial disconnection of a trailer vehicle, which was retained by the security cable. All trailer vehicles were later inspected for fitness. Six Non-Compliance with Permits (all UK) » UK (6 NCwP): the first was in relation to the use of a chemical whose permit had expired the other five were in relation to the oil in water concentration which slightly exceeded the permit level (i.e. 118 mg versus 110 permitted). These non-compliances were the subject of communications with the regulator. 38 Lundin Petroleum ANNUAL REPORT 2010

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