Supporting Qatar National Vision 2030 - maritimecsr.com · on goods and services from local vendors ... flare reduction since 2007 Al Shaheen contributes approximately one-third of

Maersk

Oil Q

atar Su

stainability

Rep

ort 2013Maersk Oil Qatar

Al Jazi Tower, Doha, QatarPO Box 22050

Tel: +974 4401 3963 Fax: +974 4401 3403www.maerskoil.com

Follow us on Twitter @MaerskOilQatar

Maersk Oil Qatar

Sustainability Report 2013

Supporting Qatar National Vision 2030

Human

Social

Economic

Environmental

Sustainability highlights in 2013

Approximate total spending by Maersk Oil Qatar on goods and services from local vendors

Achieved 90% flare reduction since 2007

Al Shaheen contributes approximately one-third of Qatar’s daily oil production:

the value of field development Maersk Oil has delivered over the past decade, working alongside Qatar Petroleum

of Maersk Oil Qatar employees answered favourably to the opinion survey question of whether the company is ‘committed to employee safety’

Completed three deals with Gulf Drilling International valued at

($428 million)

Trained a total of 346 onshore newcomers and more than 1,000 offshore new joiners on ‘Incident-free’ in 2013

Launched a new Global Management System in 2013, and examined the working conditions of our offshore workforce, with a view to protecting their health, safety and wellbeing

1,430Employees and contractors received Incident-free induction and leadership training

The Action on Diabetes programme screened 5,973 people for diabetes

With the Ministry of Interior we successfully developed and launched the new national road safety brand

to create a unified road safety identity for the country

Proud sponsors of

the UNESCO World Heritage archaeological site

$650 million

33offshore platforms

More than

300wells drilled

$9 billion

QR 1.5billion

More than 50% reduction in GHG emissions since 2007

Reduced produced water volumes in 2013 by 5% when compared with 2012

Continued to make reductions in our air emissions of SO2 and NOx

-90% -50% -5%

Launched a new five-year strategic,

focused on being able to recruit the best people in the market and providing high-quality development opportunities

QataRization planone

Second!

93%

5,973

7,300Educated approximately 7,300 school children on healthy living and risk factors

al zubaRah

Contents

About this report 2Management introduction 3Company profile 4Sustainability at Maersk Oil Qatar 6

Governance 8Maersk Group policies 10Human rights and worker welfare 12

Health and safety 14Incident-free: workforce safety 15Process safety 22Health 24

Environment 26Water 29Energy management 30Greenhouse gas emissions 32Biodiversity 33Waste management 35

Our people 36Qatarization 37Promoting diversity and inclusion 40Workforce development and engagement 40

Community and society 42Action on Health and Safety 44Action on Education and Capability Building 48Action on Environment and Culture 51Supporting local suppliers 52

Appendix I: Sustainability performance in numbers 54Appendix II: Issues and indicators 55Appendix III: Reporting processes 56Appendix IV: Abbreviations and definitions 58Your feedback 60

C o n t e n t s 1

About this report

We are keen to ensure our sustainability reporting meets the needs of our various stakeholders. This year, we have taken further steps to improve our reporting, including carrying out a formal materiality assessment process to determine which issues to cover in the report, and to guide the prominence given to each issue. We have also undertaken a thorough internal assurance process to check the accuracy and reliability of selected data and report content. More information on these processes is provided in Appendix III on page 56.

Welcome to the fourth annual Maersk Oil Qatar Sustainability Report.

In preparing the report, we have taken account of the guidelines on sustainability reporting issued by the HSE Regulations and Enforcement Directorate of Qatar Petroleum, under their Sustainable Development Industry Reporting initiative. We have also used the International Petroleum Industry Environmental Conservation Association (IPIECA) guidance on sustainability reporting as a basis for determining the content and specific indicators set out within the report.

A list of the performance indicators used is provided in Appendix I on page 54.

2 S u s t a i n a b i l i t y R e p o r t | 2 0 1 3

Management introductionCreating the greatest possible value from the nation’s natural resources will be essential to achieving the Qatar National Vision 2030 (QNV 2030). A successful oil industry remains as important as ever, and oil will continue to play a central role in a balanced energy portfolio.

The Al Shaheen field continues to make a major contribution to Qatar’s oil production. Our latest field development plan (FDP2012), which was approved in 2012, is well under way, with significant progress made in 2013. FDP2012 includes the drilling of 51 new wells that will help to maintain the short- to medium-term production of around 300,000 barrels per day.

Al Shaheen is one of the most complex fields in the world, with an area of more than 2,000 km2, and widely varying rock and fluid properties. The field is characterised by thin oil columns in predominantly low-permeability, high-fault-density regions, oil-wet rock, and low natural pressure. All this is within reservoir layers ranging from one to 40 metres. This complexity explains why, in the past, other operators considered the field to be marginal and uneconomic.

Where others saw challenge, Maersk Oil saw opportunity.

At Maersk Oil, our experience of operating Al Shaheen alongside our partner Qatar Petroleum has created a unique level of insight into this highly challenging reservoir. The enduring importance of the field to our company, our undivided focus on upstream oil and our experience in meeting similar challenges in the Danish sector of the North Sea, mean Maersk Oil are specialists in Al Shaheen.

The same expertise that transformed Al Shaheen into a world-class field in the past will be just as important in ensuring its success in the future: unparalleled reservoir insight, the application of new and proven technology, all delivered with world-class operating performance that has created a leading track record in safe, value-driven delivery.

Al Shaheen’s unique complexity means that a one-size-fits-all approach will not realise its full potential. The most certain way to extract every possible drop of oil will come from drawing on a deep understanding of Al Shaheen to apply the right approaches and technology to meet each individual challenge.

Through more than 20 years of experience in Qatar, we have built a deep understanding of the Al Shaheen field and developed extensive relationships that not only help our business, but which also support local enterprise. Our contracts with Gulf Drilling International in 2013, for example, represent landmark agreements with a local supplier.

In this relationship and in others, our goal is to make a broader contribution to Qatar’s social and human development. We support ambitious projects in the community, covering action on health, safety, the environment, education and culture, where our initiatives are making a real difference to people’s lives. In many of these projects, we are looking to Qatar’s long-term future and the goals of the QNV 2030, as we are through our renewed strategy on Qatarization and our US$100 million investment in Maersk Oil’s first global Research and Technology Centre, which we have chosen to locate here in Qatar.

Lewis AffleckManaging DirectorMaersk Oil Qatar

This is our fourth annual sustainability report, and features a number of enhancements as our sustainability reporting processes mature. We have included information on how sustainability is incorporated into our strategic planning, and more on our materiality assessment process, which helps guide the content and balance of the report. Importantly, we have carried out a formal internal assurance process on the report content and process this year, in line with our rigorous approach to internal auditing across the organisation. We hope you like the result and, as always, we welcome your feedback.

Sheikh Faisal Bin Fahad Al ThaniDeputy Managing DirectorMaersk Oil Qatar

Specialists in the Al Shaheen field

M a n a g e m e n t i n t r o d u c t i o n 3

Company profile

The AP Møller – Maersk Group (APMM) was established in 1904 and is now a worldwide conglomerate that operates in some 135 countries and employs approximately 89,000 people. Maersk Oil was founded in 1962 and is a central part of the Group.

MAerSk OiL: nAvigAting cOMpLexity, unLOcking pOtentiALMaersk Oil is an international oil and gas company with an entitlement production of approximately 235,000 barrels of oil equivalent per day from Denmark, the UK, Qatar, Kazakhstan, Brazil and Algeria. Exploration activities are ongoing in Angola, Norway, the Gulf of Mexico, Greenland, Iraqi Kurdistan and in the producing countries. Turning marginal and challenging fields into commercial successes has been the cornerstone of Maersk Oil’s business since 1962. Maersk Oil focuses on pioneering technologies and harnessing talent to continue to operate safely and successfully, creating value for partners and host governments. Maersk Oil is a fully-owned subsidiary of the global conglomerate.

MAerSk OiL QAtArMaersk Oil Qatar is a subsidiary of Maersk Oil and produces approximately 300,000 barrels of oil equivalent (Boe) per day.

We have been active in exploration and production in Qatar for more than 20 years – since 1992 – within the Al Shaheen field, 80 km off the north east coast of Qatar. This is operated under an exploration and production sharing agreement (EPSA) with Qatar Petroleum on behalf of the government of Qatar. All activities are conducted in co-operation between Qatar Petroleum and Maersk Oil Qatar.

The Al Shaheen field was originally considered unattractive for development due to its composition of very thin carbonate and sandstone reservoirs. Maersk Oil’s experience and technology in developing marginal fields, including our extensive use of horizontal well technology, proved the project viable and we continue the successful development of the field today. In 2013, we pledged to invest a further US$1.5 billion in our latest field development plan (FDP2012) to further the recovery from the field.

Total hydrocarbons produced in Al Shaheen field (1,000 tonnes of oil equivalent)

n Crude oil + condensates n Associated gas

2007 2008 2009 2010 2011 2012 2013

30,000

25,000

20,000

15,000

10,000

5,000

0

Ras Laffan Industrial City

Saudi Arabia

DOhAQatar

Mesaleed Industrial City

North Field Alpha

Al Shaheen Field

A

B


prODuctS AnD OperAtiOnSMaersk Oil Qatar’s facilities in the Al Shaheen field consist of nine locations divided into two centralised processing platforms at A-Location and B-Location, as well as seven satellite production complexes.

The field currently comprises:• nine process platforms • seven accommodation platforms• 11 wellhead platforms• 22 interconnecting bridges

Crude oil is stored and exported via tankers through two floating storage and offloading (FSO) vessels, each moored to a single-point mooring (SPM) buoy.

In 2013, Maersk Oil Qatar produced approximately 17 million tonnes of oil equivalent (toe) of hydrocarbons, which amounted to approximately 300,000 barrels per day (bpd) of oil and condensates and 150 million standard cubic feet per day (mmscfd) of associated gas (excluding gas recirculated for lift or reinjected for reservoir pressure). Our latest field development plan (FDP2012), includes the drilling of 51 new wells that will help to maintain short- to medium-term production.

The oil is delivered to international markets, while the associated gas is predominantly exported to Qatar Petroleum’s North Field Alpha facilities. From here it is distributed onshore for gas processing and can be used in local industries and electricity generation, or can be exported.

A total of 1,506 people work at Maersk Oil Qatar: 862 employees and 644 operational contractors. Of these, 638 personnel work offshore on rotation.

MOQ’s vision

Our vision, to more than double the recovery from the Al Shaheen field, will be achieved by applying innovative technical solutions and project resources, in partnership with Qatar Petroleum.

By doing so, we believe we can bring mutual benefits to the State of Qatar and to Maersk Oil – by generating financial revenue and supporting the Qatar National Vision 2030.

With the right strategy, technology, and of course people, we believe that opportunities exist to further unlock the massive potential of this giant field.

AP Møller – Maersk operates in 135 countries and employs 89,000 people

C o m p a n y p r o f i l e 5

Sustainability at Maersk Oil Qatar

In line with the new AP Møller – Maersk Sustainability Strategy 2014–18, our aim at Maersk Oil Qatar is to integrate sustainability systematically into our business processes and make sustainability a competitive advantage. As part of Maersk Oil, we measure our progress towards integration and report twice a year to the APMM group on how far we have progressed.

The integration of sustainability into our business processes focuses on ensuring we have demonstrable commitment, backed by a clear strategy. In Qatar, the pillars of the strategy include corporate social responsibility and health, safety and the environment. Annual business priorities are set which relate to these, which in turn drive specific plans and initiatives, backed by key performance indicators.

MOQ’S FIVE-YEAR INTEGRATED ACTIVITY PLANAs part of our planning and risk-assessment processes, we have an MOQ five-year integrated activity plan which sets out major activities planned by the business. The activity set captured by the plan is wide-ranging and covers the most material sustainability issues for the business, including health, safety, security, environment and quality; production; financial performance; resources and reserves; and people. A portfolio of key performance indicators is set to measure performance, with quantifiable performance targets. Performance against these targets is measured and presented in performance ‘dashboards’ which illustrate performance to managers at any given time.

This planning process provides a good example of how sustainability considerations are integrated into our core business processes. More generally, sustainability matters are incorporated into responsibilities, accountabilities, objectives and targets. For example, safety targets are included within the performance objectives of many staff and managers.

Management is also tasked with assessing the key risks, which are identified and assessed within a robust risk-management framework. Opportunities are also identified and acted upon. To build long-term constructive relationships, we have identified our stakeholders and engage with them on a regular basis in a number of ways, such as through multi-year partnership programmes where we work together to tackle important challenges facing Qatar.

All these elements contribute to the growth of a safety and performance culture in which sustainability issues are central, and in which important sustainability issues are addressed by management, incorporated in training programmes, included in performance contracts and incentive programmes, and communicated internally and externally.

The activities within the plan have a fundamental bearing on the sustainability of the business, capturing key areas of future activity and the most important risks and challenges the business faces. The summary opposite highlights the key sustainability-related plans for the future.

-90%Since 2007 Maersk Oil Qatar has reduced flaring by more than 90 per cent


Sustainability elements and issues

plans in place progress to end 2013

health and safety Embedding the Incident-free sustainability plan. Initiatives taken on focal areas of Incident-free leadership, learning from incidents, contractor management, vulnerability, asset integrity, follow-up actions, and the management of change.

Lost-time injury frequency (LTIF) rate of 0.63 per million man-hours across all operations.

Trained a total of 346 onshore newcomers and more than 1,000 offshore new joiners on Incident-free in 2013.

93 per cent of MOQ employees consider the company is ‘committed to employee safety’.

climate change and energy

Developing an MOQ environment strategy (draft), including greenhouse gas emissions, flaring and energy efficiency.

Draft strategy prepared in 2013, involving extensive materiality assessment, definition of ambition levels and business validation.

Total greenhouse gas emission reductions in CO2 equivalent of more than

50 per cent since 2007.

Flaring reduction of more than 90 per cent since 2007.

environment Developing an MOQ environment strategy (draft), including produced water, spills, hazardous waste, biodiversity, drilling discharges, business integration, contractor management, employee engagement.

Significant improvement in produced water quality.

SOx and NOx emissions reduced since 2007.

The Qatar Whale Shark Research Project has led to better understanding and awareness of this valuable feature of Qatar’s biodiversity.

Social Continuing our social investment programme, focused on high-quality projects with real long-term impact for Qatar.

Action on Health and Safety activities/projects continued, including Action on Diabetes; launched the ‘One second’ national road safety campaign, car seats for new-borns; continued the Maersk Oil and QP Challenge.

Action on Environment and Culture: continued the marine research programmes and the Qatar Whale Shark Research Project; supported development of the Al Zubarah UNESCO world heritage archaeological site, and continued support for the professorial chair at Qatar University.

Action on Education projects include continued support for Qatar National Robot Olympiad, Scholarship for Students.

economic Implementing the long-term development of the Al Shaheen field to maximise ultimate recovery.

Developing the enhanced oil recovery programme at Al Shaheen.

Increasing local supplier content.

Long-term master development plan for Al Shaheen, produced in 2011.

Field Development Plan 2012 started, consisting of facilities work and 51 wells to maintain plateau production.

Water alternating gas (WAG) pilot launched to sweep the reservoir as largest offshore WAG project in Qatar.

Significant local content spend and focus on using local suppliers.

Three new Gulf Drilling International rigs in the field, and a contract signed for one additional accommodation rig in 2014.

Workforce Furthering our Qatarization strategy to support the goals of the Qatar National Vision 2030.

Qatarization now 22 per cent (191 Qataris), in line with plan.

New Qatarization strategy launched in 2013 to develop Qatari leaders.

Launched new recruitment campaign in 2013.

governance and management systems

Embedding the new Commit governance framework in MOQ.

Commit framework launched in 2013.

New Global Management System (GMS) introduced in 2013.

S u s t a i n a b i l i t y a t M a e r s k O i l Q a t a r 7

Governance


Our Group Core Values, Group Policies and other governance documents provide us with a responsible approach to business

Governance structureMaersk Oil Qatar A/S (MOQ) is a Danish company with a registered branch in Qatar. MOQ is a subsidiary of Maersk Olie og Gas A/S (Maersk Oil) which is part of the AP Møller – Maersk Group (APMM).

The APMM Board of Directors provides the highest level of governance for Maersk Oil and its subsidiaries, and drives the systematic integration of sustainability into business processes and systems. The Board of Directors is supported in this by a Sustainability Council, which is made up of high-level representatives from APMM’s business units. The Council oversees compliance, approves strategies and provides guidance on steps to anchor sustainability in the business.

Key to APMM’s governance approach is the new Commit framework, which integrates the Group’s values, policies, rules and guidelines. Commit, introduced in 2013, applies to all companies within the Group. Its elements are described in more detail below.

MOQ’s Board of Directors is formed by Maersk Oil’s Chief Executive Officer (Chairman), the Chief Finance Officer (Vice-Chairman) and the Chief Operating Officer. The Board takes decisions on matters of major importance for MOQ.

An important element of the governance framework is taking a systematic approach to the management of risk. Our approach is derived from the Maersk Oil enterprise risk management (ERM) framework, which identifies and assesses operational, strategic, financial and compliance risks to the business.

ManaGinG systeMaticallyMaersk Oil has a global management system (GMS) framework. The GMS seeks to ensure that all Maersk Oil operating companies, including MOQ, follow common requirements, including standards, processes and procedures central to how we operate in Qatar. As part of the management system, this wide range of controls is consistently applied across MOQ to address risks and mitigate their likelihood and impact. The processes support major programmes in fields such as auditing, competency assurance and incident investigation. The GMS provides easy, organised access to documentation and resources needed to carry out daily tasks.

By taking a systematic approach to management, our aim is to ensure that:• risks are managed in a manner appropriate

to their nature and scale• relevant objectives and targets are identified• performance against key performance

indicators improves continuously• we comply with applicable legal

requirements and other requirements to which MOQ subscribes

“MOQ is part of the APMM Group and, as such, it lives the same core values. Accordingly, MOQ operates under the APMM Group Commit governance framework, applying the APMM Commit group policies and rules in how we do business. This means that MOQ in Qatar benefits from being part of a global organisation where core values and consistent ways of managing the business allow us to operate in compliance with local and international requirements and under a common framework.”lewis affleckManaging Director, Maersk Oil Qatar

G o v e r n a n c e 9

Maersk Group policiesThe Group’s five core values are underpinned by Group policies which govern the way we conduct ourselves and show how each APMM business unit and employee engages with customers, colleagues, suppliers and the community. They set the overall framework within which we do business.

our five core valuesThe premise for any business is to make a profit and create value for shareholders, partners and stakeholders, including host governments. High business standards and responsible procurement practices play a fundamental role in ensuring our continued growth and success. Our company’s five core values are the basis of the way we do business, guiding our behaviour and supporting sound decision-making.

constant care Take care of today, actively prepare for tomorrowHumbleness Listen, learn, share and give space to othersuprightness Our word is our bondour employees The right environment for the right peopleour name The sum of our values: passionately striving higher

All employees are obliged to live the core values, to know, respect and follow the Group’s Commit policies and to comply with the laws of countries in which the Group operates. It has established tools and training programmes that help employees to comply with the core values, Group policies and applicable legislation.

Group policies

Business approach We pursue profitable business and responsible leadership within our industries. This means we will:

• increase our profitability by optimising the risk and reward balance in our business decisions

• pursue relationships which are beneficial to us, our customers, our suppliers and partners

• conduct our operations with excellence• continuously improve our deliverables by including economic,

environmental and social aspects in our decisions and actions• seek to understand our customers, our supply chains and the societies

we operate in

our brand We engage with customers, other stakeholder and colleagues to promote and protect our brand. This means we will:

• engage in dialogue about our role in society, our activities and their impact with relevant stakeholders to promote our brand and name

• inform about our goals, operations and performance to create awareness and understanding of our business

• communicate the Group’s objectives and priorities to enable our employees to link the Group’s overall aspirations with their own contribution

• safeguard the information provided to us by our customers

Health and safety We conduct our business in a safe manner. This means we will:

• promote a culture in which all employees share our commitment to a healthy and safe workplace

• manage any health and safety risks connected to our activities and communicate openly about our lessons learned. We recognise that we work in industries with potential for major accidents, and we act to control and mitigate the risks accordingly

• set and comply with our own health and safety standards, which will meet or exceed applicable health and safety regulations and relevant standards

legal compliance We are committed to compliance with applicable laws and regulations. This means we will:

• train and support our employees so that our Group is able to conduct our business activities in compliance with relevant laws and regulations and internal rules

• monitor our compliance with relevant laws, regulations and internal rules• cooperate with local authorities to investigate and resolve problems

under appropriate circumstances• promote our views on regulatory matters and policymaking that may

affect us

our working culture We provide our employees with opportunities to develop and succeed. This means we will:

• create a working culture which is characterised by our values• trust and empower our employees• clearly link business result, job performance and rewards• engage our employees, support our employees’ performance, inspire

and lead by example

1 0 S u s t a i n a b i l i t y R e p o r t | 2 0 1 3

Maersk Oil also has legal compliance due-diligence tools and guidelines to carry out assessments for the selection of certain categories of business partners, such as agents, joint venture partners and large-scale suppliers globally and in high-risk areas. This includes risk-assessment rules and third-party legal compliance requirements. In 2013, as in previous years, awareness-raising has been carried out with long-term contractors to ensure they understand our core values.

In 2013, we continued to provide training for staff with potentially high exposure to corruption and bribery, including (but not limited to) management, legal staff, human resources managers and employees working to secure licences, permits or contracts with government offices or major suppliers. Anti-bribery and anti-corruption training is mandatory for all new joiners. E-learning courses on fraud prevention are mandatory for management, legal and finance staff.

Our Group policies govern the way we conduct ourselves and show how each APMM business unit and employee engages with customers, suppliers and the community

livinG tHe core valuesWe expect our employees to adhere to the core values, and we have a clear framework in place for reporting breaches or suspected breaches of the Group policies and other business standards. Employees are able to raise suspected breaches with line managers, other management, local human resources or legal teams, or to use the whistle-blower system, which can be used anonymously.

The whistle-blower system enables employees to report possible breaches that may harm the company, allowing the Group to learn about wrongdoing quickly and take appropriate action. Employees can report fraud, corruption, insider trading, discrimination, harassment, severe breaches of IT security and other serious matters. The system provides a reporting tool for those who might otherwise not make a report, for example out of fear of putting their job at risk. Maersk Oil does not tolerate retaliation against anyone for reporting violations they genuinely believe have occurred, and investigates each report based on the seriousness of the allegations and the facts available.

G o v e r n a n c e 1 1

GivinG and receivinG Gifts and Hospitality We also have a clear policy on gifts and hospitality, set out in the Maersk Oil Employee Handbook. In accordance with the APMM Anti-Corruption Group rules and the MOQ gift and hospitality policy, employees may not give or receive money or any gift to or from a supplier, government official or other organisation. Exceptions may be made for gifts that are customary and lawful, of nominal value and authorised in advance. If there is doubt, employees should consult their leader, the MOQ Legal and Corporate Affairs department or the Maersk Oil Compliance Officer.

Any gift or entertainment which is deemed appropriate to be received by an MOQ employee and is of a value of more than US$150 must be registered in the MOQ gift register or the APMM hospitality book.

To our knowledge, there were no incidents or claims relating to legal compliance within MOQ activities in 2013.

transparency of payMents to Host GovernMentsMaersk Oil supports the Extractive Industries Transparency Initiative (EITI), a global framework that promotes revenue transparency through public reporting of company payments and government revenues. Maersk Oil’s financial statements are available to the public via our annual reports in Denmark. Some EPSA figures are confidential and only available to Qatar Petroleum.

HuMan riGHts and Worker WelfareMaersk is a LEAD member of the UN Global Compact (UNGC) and as such subscribes to the 10 UNGC principles for responsible business practices, which focus on issues relating to human rights, labour rights, environmental protection and anti-corruption. Maersk Oil monitors human rights developments by participating in the oil and gas industry organisation IPIECA’s social responsibility working group.

We respect human rights and work to ensure that we do not contribute to human rights violations. Our approach is to integrate human rights management into existing business processes. In practice, this means that many of the issues relevant to protecting human rights are covered by programmes in health and safety, labour practices and human resource management, and responsible supply chain management and procurement. For example, we are working towards an MOQ standard working conditions policy, for use by our suppliers and contractors, which reflects Maersk and UNGC requirements and is in compliance with local regulations.

loBByinG Engaging in constructive dialogue and lobbying on issues relevant to our businesses is an important way for Maersk Oil to contribute to public policy and political debates. This engagement brings business and societal benefits and helps to manage potential issues and risks. For example, MOQ is an active supporter of programmes to develop young scientists and technologists in Qatar, thus contributing to Qatar’s future prosperity and addressing a future business need. Much of this work is conducted through industry organisations, as well as meetings with local stakeholders.

We strive to act as good corporate citizens when engaging with governments and political institutions, and to share our experience and views responsibly.

tHe un GloBal coMpact Maersk Oil is a member of international organisations such as IPIECA and OGP that support commitments to responsible business practice. We have been a signatory of the United Nations Global Compact since 2009, and when the Global Compact LEAD was launched in 2011 we became one of 55 corporations taking part in this platform for corporate sustainability leadership. MOQ has taken an active role by working with our contractors to improve working conditions and standards, and to support implementation of our responsible procurement and compliance requirements, and the Maersk Oil HSE standards.


Case studyImproving worker welfare

The size of our offshore working population varies, but can number as many as 2,000 people, most of whom are contractors. Many are involved in production, maintenance and construction; others provide services such as catering. Offshore work is mentally and physically demanding, and takes place in an environment where hazards are inherent. Work is carried out in shifts, with workers offshore on rotation for several weeks in a row. We place the highest emphasis on making sure that all people at work are protected as far as possible and that all work is Incident-free.

A Maersk Oil standard on HSSEQ contractor management was rolled out in 2013, under which we assessed existing contracts for operational risks. The findings enabled us to set priorities, and we are working to put contractor management plans in place.

An MOQ local working group on contractor management reviewed construction-contract provisions on issues such as shifts and rotation lengths for offshore maintenance workers.

Also in 2013 we audited our construction and helicopter services contracts, among others, and reviewed the quality of workforce accommodation. Audits involve staff from Maersk Oil’s HSE department, or subject matter experts, as well as representatives from the contract-holder with day-to-day operational knowledge. Findings logged in Synergi, our safety management system, enable us to track actions and ensure that non-conformances and opportunities for improvement are addressed.

Major offshore services contracts typically have a term of three years, with potential for extensions – some are due for renewal in the near future. With our partner, QP, we are working to update and, if and where necessary, to improve terms and conditions.

G o v e r n a n c e 1 3

Health and safety


The 2013 employee engagement survey revealed that a powerful majority of MOQ people believe the company is ‘committed to employee safety’

We are constantly developing new ways to further enhance our safety environment and systems. This philosophy lies behind our Incident-free programme, which we continued to embed in 2013 and which is dedicated to establishing a culture where safety is at the forefront of everything we do.

We also work to create a supportive working environment for all our people. The health and wellbeing of our workforce is vital in ensuring our continuing success.

IncIdent-free: workforce safetyOur commitment to an Incident-free Maersk Oil is based on our belief that accidents are never inevitable and never acceptable.

embedding Incident-free at Maersk oil QatarFollowing executive level commitment to create an ‘Incident-free’ organisation, we launched the Incident-free initiative in 2011. Incident-free seeks to create an environment in which everyone can work safely, including onshore and offshore locations, employees and contractors, and addressing all facets of operating safely within the company, including health, environment, security and quality. It concentrates on two areas:

• embedding the Incident-free safety culture: ensuring that by living our values, every member of our workforce is fully informed, motivated and competent to play their part in managing safety

• process safety: ensuring the safe design, operation and maintenance of our facilities, and technical processes to maintain the reliability and safety of our operations

The safety of our workforce is paramount: we strive to eliminate all incidents and to protect our people, the environment in which we operate, and our assets. We know that safe operations are successful and sustainable operations, and we are fully committed to operating to as high a standard of safety as possible.

Our Health, Safety, Security and Environment (HSSE) policy describes and guides our commitment to international best practice and compliance with local legislation. It provides the framework through which we drive continuous improvement.

MOQ uses a management systems approach as an overarching tool in the management of risk. Our system is derived from the Maersk Oil Global Management System, which provides a group-wide framework of strategy, standards, processes, procedures and policies. By taking a systematic approach, we aim to ensure that:

• HSE risks are managed in a manner appropriate to the nature and scale of associated impacts and risk

• relevant HSSE objectives and targets are identified

• performance against key indicators continuously improves

• we comply with applicable legal provisions and other requirements to which MOQ subscribes

As part of the management system, a range of controls are applied across MOQ to address risks and mitigate their likelihood or impact. These include auditing, competency assurance, and incident investigation.

We are fully committed to working safely and to protecting our people and the natural environment

93%

H e a l t h a n d s a f e t y 1 5

Our work in 2013 has been on embedding Incident-free within the company and making sure that our decisions are based upon its principles, so that Incident-free becomes part of business as usual, rather than event-based. An encouraging and positive result from the 2013 employee engagement survey was that 93 per cent of MOQ people believe the company is ‘committed to employee safety’, indicating that the Incident-free mindset is becoming embedded in the organisation.

MOQ Incident-free strategy

Safety commitments

PERMIT EVALUATE

!

PERMIT EVALUATE

!

PERMIT EVALUATE

!

PERMIT EVALUATE

!

PERMIT EVALUATE

!I take responsibility for the safety and wellbeing of myself and my colleagues

I consider the risks involved before and during any job

I work with a valid work permit when required

I intervene if I see unsafe work

I acknowledge that we are all vulnerable

the If IMpleMentatIon strategy Building on this foundation, our strategy for Incident-free implementation provides for action in three core areas: sustaining an Incident-free culture, improving process safety, and improving safety and emergency procedures.

our safety coMMItMents The Incident-free programme is underpinned by principles and safety commitments that define expectations for everyone who works at Maersk Oil. These are integral to our drive to become a zero-incident organisation.

strategy

Maersk oil Qatar Visionsustain Incident-free

Safety culture engrained in Maersk Oil leading to zero incidents

Incident-free Maersk oil

sustain incident-free cultureIncident-free leadershipLearning from incidentsContractor managementWorkforce engagementCommunication

Improve safety and emergency proceduresSecurityEmergency responseCrisis managementImplement GMS

Improve process safetyVulnerabilityAsset integrityFollow-up on actionsManagement of changeCompetency and training


Workforce injury frequency per million work-hours , 1999–2013

trIf

ltrIf

Lost

-tim

e in

jury

freq

uenc

y (L

TIF)

Tota

l rec

orda

ble

inju

ry fr

eque

ncy

(TR

IF) 30

25

20

15

10

5

0‘99 ‘00’ ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 09 ‘10 ‘11 ‘12 ‘13

3.6 13 18 13 26 21 10 5.4 4.8 4 2.2 3.5 2.7 2.7 2.9

0.9 4.7 4 1.7 1.2 1.9 1.3 1.4 1.3 1.1 0.5 0.4 0.4 0.3 0.6

6

5

4

3

2

1

0

personal safety perforMance In 2013Following our best ever safety performance in 2012, we experienced five lost-time injuries (LTIs) in 2013. All lost-time incidents are unacceptable and we are working hard to ensure lessons are learned and repetitions are avoided. Four of the five occurred offshore and involved hand or arm injuries; the one onshore injury followed a slip outside the Al Jazi headquarters office. While none of these was a high-severity incident, each one underlines the fact that there is more work to do to continuously improve.

Employees and contractors worked 7.9 million man-hours at Maersk Oil Qatar in 2013, resulting in a lost-time injury frequency (LTIF) rate of 0.63 per million man-hours across all operations. This is higher than in previous years, emphasising the need to focus on preventive improvements to our performance. Our goal remains to work towards zero lost-time injuries.

We are also mindful of the need to reduce all recordable injuries, which include less severe incidents. In 2013, resulting from two employee and 21 contractor injuries, our total recordable injury frequency (TRIF) was 2.9 per million hours, slightly higher than in 2012 and 2011.

While this record illustrates that there are challenges to tackle, our LTIF rate remains better than the International Association of Oil and Gas Producers (OGP) industry benchmark, which analyses performance data from across the upstream industry.

One of the ways we tackle the challenge of increased incidents is to encourage reporting of near-misses; events that might have caused harm if circumstances had been slightly different. Near-miss reporting gives us a good indication of the levels of safety awareness, transparency and watchfulness across the workforce and enables lessons to be learned. In 2013, there was a significant increase, of approximately 13 per cent, in the number of near-misses reported compared with 2012, and more than double the number of reported incidents compared with 2010 despite a decrease in working hours.

We experienced 13 high potential safety incidents (HIPOs) in 2013, of which seven were occupational safety-related and six process safety-related. All were acted upon, investigated and lessons were learned.

We have also taken a more consistent approach to analysing lessons from incidents and near-misses, and intend to further improve the ways in which we embed learning in 2014. Better control of risks by learning from incidents is one of the fastest ways to improve safety.

Our lost-time injury frequency (LTIF) rate, per million man-hours, in 2013. MOQ’s employees and contractors worked 7.9 million man-hours during the year

0.63


sustaInIng IncIdent-free: actIons In 2013We undertook a wide range of actions to embed Incident-free in our operations and to build a foundation to sustain it over the long term.

Incident-free leadership teamsRecognising the importance of demonstrable leadership, our Incident-free Leadership Teams onshore and offshore have been championing safety discussions, learning and exchanging information. For example, the introduction of daily toolbox talks at the warehouse are improving safety vigilance; at A-Location, an action log has been developed to promote collaborative working and transparency; at E-location, high potential incidents have been examined as case studies; at FSO Africa, safety coaches have assisted standby boats in implementing an Incident-free culture. Teams across our operations are driving engagement and developing our ability to identify, communicate and resolve safety challenges.

We aim to develop the leaders of departmental Incident-free teams to the point where they become self-managing and self-sustaining, thus integrating Incident-free leadership into the business at many levels.

working in partnership with contractorsA key element in our journey to becoming Incident-free is the way we work with our contractors. We have committed to organising Incident-free orientation sessions, providing a regular newsletter for contractors, clearly communicating safety alerts and increasing the presence of safety advisers offshore.

In 2013, Incident-free on-boarding sessions were held for crew on the new drilling rigs and pipe-laying vessels, ensuring alignment of our safety values and culture, and promoting a trust-culture where everyone has the right to speak up. More than 700 contractors on five drilling rigs have completed the programme since it was introduced in September 2012. Since then there have been no lost-time incidents (LTIs) on any of the five rigs. With four rigs operating in the field in 2014, we are determined to maintain this positive trend.

We continued the Incident-free induction and leadership sessions in 2013 for our onshore and offshore workforce staff and supervisory leaders, and trained more than 1,430 onshore and offshore employees and contractors in 2013.


Following our agreements in 2013 with Gulf Drilling International (GDI) to contract new offshore drilling and accommodation rigs, we have worked with them to make sure that safety is embedded. The combination of new rigs, new crew and multiple nationalities, compounded by continued well work-over activity and day-to-day production, meant that we foresaw a period of intense offshore activity and increased risk, when an Incident-free approach would be vital.

With GDI’s full support and involvement, we took a holistic approach to increase commitment to safety and Incident-free among everyone involved in the operation, from senior management to junior crew, in preparation for the new rigs’ arrival and start-up.

We designed a programme to:

• encourage safe behaviour and mindset changes

• enable a unified, consistent approach towards safety among all personnel and contractors

• embed Incident-free principles and core safety values (eg taking constant care of yourself and your co-workers) among a diverse work group

• build trust and strengthen relationships among personnel and leaders, no matter who they are or which company or country they come from

• improve HSE performance and awareness

• lead by example, and so empower and encourage others in the industry

Early approach An Incident-free programme was launched on GDI’s first rig, the Al Jassra, in Singapore before its mobilisation to the Al Shaheen field, to ensure a common vision and approach to safety and Incident-free among all personnel. More than 30 supervisors and senior staff joined MOQ drilling-team members in Incident-free alignment workshops.

Holistic approachWorkshops were held with operators and rig contractor managers to align and to build strong leaders and relationships. Leaders demonstrated their Incident-free commitment by running commitment workshops for all personnel, to discuss Incident-free values, namely ‘taking personal responsibility for their own safety and that of others’.

Embedding safety coachesTo sustain Incident-free and provide support, safety coaches were assigned to the rig, conducting regular coaching, maintaining awareness, encouraging positive interventions and mediating safety conversations at all levels.

Support material An Incident-free on-boarding film, training literature and support material were produced. The film’s safety messages are critical for new people and an important recap for others.

Sustained results and sustainable improvements include:

• more than 700 contractors have completed the programme on the rigs

• results show that Incident-free has had a positive impact on safety behaviour, with greater participation in safety observations and interventions from contractors and service companies, and more ownership of safety issues

• Incident-free has increased the use of the STOP card system on board, helping to cut the number of near-misses and HIPOs, and has had a positive impact on managing process safety procedures

• by empowering people, Incident-free has increased dialogue, and new ideas have resulted in greater operational efficiency

• following the example on the Al Jassra rig, the same methodology was applied to the other new rigs, and for other FDP2012 contractors (such as pipe-laying contractors), and has been rolled out to all MOQ staff.

We implement Incident-free early in the selection process for new rigs and when working with service companies, demonstrating MOQ’s commitment to improving industry HSE.

Case studyEmbedding safety with our contractors: Incident-free with Gulf Drilling International


onshore actIVItIesWe also concentrated attention on onshore safety. In April 2013, approximately 1,000 employees and contractors, offshore and onshore, participated in our second annual Maersk Oil Global Safety Day, where we considered safety role models. We reviewed two recent HIPOs and encouraged intervention to stop unsafe acts and behaviour.

In 2014, we intend to reinforce our support for a culture where intervention is not only possible, but is valued as a powerful way to prevent incidents. The challenge is to equip employees with the courage and personal skills to intervene if they see an unsafe act or behaviour.

I work with a valid work

permit when required

I consider the risks

involved before and during

any job

I takeresponsibility for the safety

and wellbeing of myself and my

colleagues

I always intervene when I

see unsafe acts or conditions I

acknowledge that we are all

vulnerable

Incident-free role models

Number of participants, offshore and onshore, in the Maersk Oil Global Safety Day in April 2013

1,000


engagIng our workforce on safetyMaersk Oil Qatar strives to create an open, trusting culture in which ideas are welcomed and people feel empowered to speak up on health and safety issues.

Well-established processes and tools exist to involve personnel – these include training sessions, safety meetings, planning and risk assessment sessions, toolbox talks and safety suggestion boxes. We review safety procedures regularly to ensure they are aligned with regulations, international standards, industry best practice and technological developments.

We actively encourage reporting of incidents and near-misses. We investigate incidents to identify and address root causes. We distribute alerts, information and lessons learned, using our Synergi safety system.

We also drive improvement in general levels of safety awareness through our quarterly Incident-free newsletter, leaflets, bulletins, videos and safety campaigns. Our regular safety culture survey promotes dialogue and an open working environment on safety matters.

“Safety role models come in many forms, shapes and sizes. They’re not only the people that are doing good, following procedures and so on, but they’re increasingly the people that dare to shout when something can be done better, even when they annoy their colleagues. In other words, role models dare to intervene, both to correct things and to encourage what’s done well.”

wells groganHead of HSE, Maersk Oil


Our programmes and activities to improve process safety fall under the following principal themes:

• commitment: we are working to build a strong process safety culture in which desired behaviours are evident across our workforce

• understanding hazards and managing risk: we identify potential hazards through risk analysis, inspection and testing, and seek to ensure safe working practices, training and competent people; and we have a clear process for managing change, and effective procedures for shutdowns and emergency response

• learning from experience: we regularly audit the effectiveness of our procedures, and regularly assess the knowledge, awareness and capabilities of our personnel

process safetySafety is about more than human factors: we must also ensure our systems and controls are robust and effective. Continual reviews and improvements ensure that we maintain our assets and materials to prevent the unintentional release of hazardous materials or energy. This ‘process safety’ discipline lies at the heart of successful oil and gas operations and is a core element in our Incident-free programme.

Improving ways of working and processes to manage the risks inherent in producing hydrocarbons is a key objective in our 2014 business priorities, which are set by the leadership team after intensive review and planning.


commitmentWe track our performance against process safety metrics including lagging indicators (which show past performance, such as the number of HIPOs) and leading indicators (which help to assess the strength of our controls, such as the number of offshore visits by management).

In 2013, we had six process safety-related HIPOs. One, a gas leak on C-location, pointed to the susceptibility of some components offshore to a combination of residual stress, temperature, oxygen and chlorides, which resulted in corrosion and cracking. Corrosion is an ever-present challenge in oil and gas industry operations – we have created a dedicated task force to examine this issue, and have made it a focus area for our Operations team in 2014.

understanding hazards and managing riskWe have introduced a new framework for risk management, which includes a refreshed risk register to identify and assess the scale of risks we face. In 2014, we are putting in place a framework that gives us a common language on how we identify and manage risk. As part of the framework, risks and mitigation measures are regularly reviewed and updated.

Good personal and process safety requires that everyone is competent to carry out their job and that operators have confidence that individuals have up-to-date and appropriate skills. We are developing and improving existing competency assurance frameworks in several parts of the business, including operations such as drilling and support functions such as engineering and auditing. In 2014, we will carry out training to raise awareness of major accident hazards.

We are focusing in 2014 on the management of shutdowns, when equipment or entire facilities are taken out of action for essential maintenance, repair or change. Shutdowns involve detailed planning between departments and teams, months or even years in advance. A dedicated shutdown team manages our processes in this area.

learning from experienceEffective process safety also requires completing required actions and learning from safety incidents, whether they resulted in actual harm or not. Our leadership team monitors the number of outstanding actions from audits and incident investigations, and tracks them until closure. In 2014, we will review and set priorities to complete actions that minimise risk on our platforms.

As per MOQ procedures, any incident (such as an accident or near-miss) is notified, analysed, reported and followed up. All reported incidents are assessed quarterly by a multidisciplinary incident review committee, which seeks to ensure that there is an adequate management system in place, all major hazards have been identified, appropriate measures are in place to manage risks, and that those measures are properly supported and controlled.

Incidents for which the combination of potential consequences, frequency and probability is assessed to be ‘high’ in the risk assessment matrix are thoroughly analysed, with emphasis on how lessons can be learned.

We have also established an operations safety assurance group to audit and analyse the root causes of incidents. Process safety audits covering our offshore process platforms are included in our 2014 internal audit plan.


healthA healthy workforce is a key ingredient in continuing business success, so we have processes and initiatives in our workplaces to promote the wellbeing of everyone who works for us. Our support for worker health goes beyond occupational health and safety: we support people in leading healthier lives at work and home.

Maersk supports the aspirations in the Qatar National Vision 2030 for fostering public health. At the centre of our efforts are the major, multi-stakeholder public health campaigns to raise awareness of diabetes in Qatar, help those at risk avoid it, and support people already living with diabetes. We support other community health initiatives, such as initiatives to promote road safety.

health surVeIllance and fItnessThe health of employees is underpinned by our principles of conduct and our Health and Safety Policy, and is supported in practice. We provide access to medical and health services to all employees and contractors, onshore and offshore.

Our medical team administers first aid and medical treatment, provides health advice and supports employee welfare through health checks and assessments.

Company-wide health campaigns and initiatives raise awareness among staff and contractors of steps to promote better personal health. In 2013, these included health checks on blood sugar, cholesterol, triglyceride and blood pressure; and a blood donation campaign. We also continued annual influenza vaccinations and healthy-lifestyle programmes such as nutritional and dietary advice.

As part of our Action on Diabetes campaign, Maersk Oil Qatar has implemented a health awareness and wellbeing programme for employees that includes a company-wide sports day on National Sport Day. The programme is built around four themes that contribute to a healthy lifestyle and reduce the risk or impact of diabetes: healthy food, stopping smoking, physical activity, and screening.

We also help people deal with stress and carry out health risk assessments. We strive to create good work-life balance for our employees. occupatIonal health, safety and hygIeneGiven the nature of their work, members of our workforce, particularly offshore, are exposed to hazards in their working environment which include hazardous chemicals, noise and vibration, and the risk of heat stress.

We set minimum standards for personal protective equipment (PPE), and have approved lists of PPE for use on our facilities. Trained medical professionals on our manned platforms are supported by occupational health specialists.

We have well-established procedures in place to control exposures and manage health risks, including full risk assessment of work before it is begun. We carried out health risk assessments at some offshore locations and the onshore warehouse in 2013. We began to monitor the health of specific groups, such as workers exposed to higher noise levels, and we reviewed worker welfare to ensure that high standards of welfare are maintained.


Monitoring of practices, documentation, protective equipment, and the handling and storage of hazardous materials is regularly conducted, in line with procedures and laws. All appropriate radiological permitting, monitoring and auditing is undertaken, and new hazardous material suppliers are assessed to ensure they meet quality and safety standards.

We also carry out regular food hygiene inspections onshore and periodic food safety assessments offshore. We regularly test the quality of potable water in workplaces.

We track instances of occupational illness, for employees and contractors, and support efforts to eliminate and investigate cases and outbreaks of communicable diseases by notifying national health authorities.

preVentIng heat stressWe continued to raise awareness of the risks of heat stress, providing guidance to our workforce on dehydration and heat stroke, especially for those working outdoors in summer. We reinforced our six basic rules, which include guidance on issues such as the frequency and volume of liquid intake to maintain hydration.

Our bodies are meant to stay at a fairly constant temperature of around 37 degrees – heat illnesses can occur when we cannot disperse the heat burden sufficiently during the hot and humid summer. One way we deal with this potential hazard is through the hazard identification and risk assessment (HIRA) process, then choosing and implementing appropriate controls and mitigations. The hierarchy for controls is: elimination of the hazard if avoidable, substitution of the hazard, engineering controls (ventilation, covered areas), reducing employee exposure (work-rest schedules), and personal protective equipment.

coMMunIty healthIn line with the Qatar National Vision 2030, we have sought to contribute to improving the health of Qatar’s citizens. Action on Health is one of the three pillars of the social investment programme we launched in Qatar in 2011, described further in the ‘Community and society’ section of this report. The centrepiece of Action on Health is the Action on Diabetes campaign (see pages 45 and 46).

MOQ supports employees’ wellbeing through health checks, vaccinations, dietary advice and a health awareness programme

Good health

Case studyLoud and clear

A new hearing-protection programme, piloted on one of our contracted rigs, is tackling the problem of excessive noise, which can lead to tinnitus and long-term stress.

As part of the programme, MOQ compared the current position and mitigation measures against European benchmarks. The roll-out included posters and information folders, and computer-based training for offshore staff. In all locations, supervisors held safety meetings to introduce the initiative and to outline the issues and safety precautions.


Environment


Our business approach, set out in the Group policies and the new Commit framework, includes the commitment to ‘continuously improve our deliverables by including economic, environmental and social aspects in our decisions and actions’.

In 2013, we carried out an extensive assessment to confirm our material environmental issues and thus inform and refresh our environment strategy. The assessment considered the extent to which specific issues are important to the future of the business, also assessing their importance to external stakeholders. It identified potential issues, defined criteria for judging their businness significance, gauged the relative importance of external stakeholders, and ranked the importance of each issue against business and stakeholder significance. We validated the initial assessment with different parts of the business, senior management reviewed the findings, and we re-examined our strategy.

The Maersk Oil Qatar environment strategy assesses our level of ambition on each issue, encompassing positions ranging from compliance and risk management to integration and leadership. We assessed our standing against these elements and developed actions for reaching where we want to be in future.

We take environmental matters into account in our decisions and actions, and seek to minimise our impact on the environment

5.6In 2013 we reduced average oil-in-water content of produced water to sea to 5.6 mg/l, substantially lower than the 40 mg/l legal limit

Our vision states our commitment to integrating environmental considerations into our operations and being transparent with stakeholders about our performance. Our approach is based on the pursuit of greater eco-efficiency – doing more with less by using resources more efficiently and with less impact on the environment. With most of our operational activities offshore, we emphasise the importance of effectively stewarding marine resources.

Ambition scale: environment

Leadership• Partnership/

collaboration to address issues, risks and opportunities

• Innovative, new approaches and solutions

• Environment seen as a value creator

• External focusCompliance• Meets regulatory

requirements• Reports on

performance• Minimal approach

Risk management• Compliance/

performance evluated on business and financial risk

• Environment mainly seen as a cost

• Reactive approach

Integration• Anticipates

issues, risks and opportunties

• Integrated into business decisions

• Proactive approach• Environment seen

as an enabler to business success

• Internal focus

E n v i r o n m e n t 2 7

TakIng a sysTemaTIC appRoaChThe Maersk Oil Qatar environmental management system (EMS) helps us translate our HSSE policy into environmental objectives and programmes, enabling us to identify, manage and minimise environmental impacts.

In particular, it ensures that we:

• manage activities systematically and in a manner appropriate to the nature and scale of associated impacts

• identify relevant environmental objectives and targets

• continually improve environmental key performance indicators

• comply with legal and other requirements

The EMS plays an important role in supporting emission reductions, minimising discharges to the marine environment, and using resources efficiently. In the field of flaring, for example, it enables us to:

• plan preventive maintenance activities efficiently to prevent plant downtime and minimise flaring

• optimise our processes • increase the use of high-integrity protection

systems to reduce flaring • minimise gas to the flare system and release

devices through robust installation and maintenance

The rigorous approach required to operate a management system effectively ensures that we complete the actions and commitments we make. We monitor actions not completed – including actions raised during internal and external audits, and resulting from incidents – and track them until they are closed. Senior managers review environmental management actions annually.

We monitor and report on environmental impact and engage independent third parties to verify our environmental performance. We also audit our environmental management system internally, and have developed a risk-based future audit plan.

ISO progress audits of our EMS were undertaken in January and June 2013, followed by a recertification audit in early 2014: the system remains in compliance with the ISO 14001:2004 environmental management systems standard. Our internal environmental audits take into consideration operational incidents, results from previous audits and the potential environmental significance of activities. These factors help determine how often we audit the elements of our EMS. For example, in 2013 our offshore

environmental audits focused on our new drilling contractors, as drilling stepped up. Also in 2013, a team from our corporate office audited our environmental data reporting process.

WaTeRMaersk Oil Qatar’s principal operations are located offshore, where we strive to minimise our impact on the marine environment through monitoring and assessment, responsible, efficient operations, and technology.

During oil and gas production, produced water is brought from the reservoir to the surface and treated to remove residual oil. Produced water is disposed of through disposal wells to the extent possible – we have met our internal disposal targets. We also improved the oil-in-water content of produced water to sea to an average of 5.6 mg/l, lower than the 40 mg/l legally permissible in the Gulf.

We strive to minimise discharges and are considering how to reduce them further in future. We carried out risk-modelling in 2013 on the environmental impact of hydrocarbons, chemicals and metals in produced water discharge, and investigated chemicals with less environmental impact. Results of the independent study, compared to a similar


study from 2011, showed that the substitution of chemicals ‘has significantly reduced the environmental risk’.

For the longer term, we aim to further reduce discharges while recognising that reductions become more difficult as the field matures. At the Maersk Oil Research and Technology Centre, research in collaboration with Qatar University is examining alternative produced water treatment methods.

oIL spILLsIn 2013, we had eight negligible (less than 1 barrel) hydrocarbon spills to sea, totalling 0.8 barrels of oil, less than in 2012. We strive for zero uncontrolled releases by investigating causes and setting corrective and preventative actions.

Oil spill detection radars on our floating storage and offloading (FSO) vessels enhance our ability to detect accidental spills and minimise environmental impact. The system can also help predict the drift of spills, which aids oil recovery operations.

oIL spILL Response Maersk Oil Qatar belongs to the Regional Clean Sea Organisation (RECSO), the aim of which is to protect the marine environment in the Gulf from the impact of oil. Maersk Oil Qatar is the only private sector member of RECSO, and provides representatives to its technical and executive committees. RECSO promotes collaboration and the sharing of experience and capability, including oil spill response equipment. Maersk Oil Qatar is committed to the Clean Gulf concept, and during 2013 nine Maersk Oil Qatar and two Qatar Petroleum employees were trained in oil spill response in accordance with International Maritime Organization standards.

We use the OILMAP software tool, which uses weather patterns and hydrological models to analyse and project the direction and extent of marine oil spills.

Oil in produced water 2008–13

50

40

30

20

10

0

2008 2009 2010 2011 2012 2013

28.8

16.2

22.5

11.4

8.2

Oil in produced water (mg/l) Regulatory limit

mg/

litre

5.6

Maersk Oil Qatar’s oil spill response equipment, stored offshore on our FSOs for faster deployment, includes support vessels, oil skimmers, a boom to contain oil and ‘buster’ systems that increase oil recovery. We also hold dispersants, and have enhanced our capacity to deploy them, using efficient and low-maintenance pumping systems.

Oil spill response exercises ensure readiness in the event of an incident. In March 2013, the oil-spill boom was deployed in an exercise attended by Qatar Petroleum, and in September a table-top exercise included Qatar Petroleum and Maersk Oil Qatar personnel, and external role players. Lessons learned are being incorporated in our oil spill response plan, as are new corporate standards and the results of well blow-out scenarios modelled in 2013. In addition, 235 offshore evacuation drills took place offshore.

235Offshore evacuation drills took place in 2013


Total energy use (direct and indirect) (million gj)

2009 2010 2011 2012 2013

13.4 18.8 22.0 21.8 20.9

Total natural gas used (mmscm/year)

2009 2010 2011 2012 2013

255 354 424 451 460

Al Shaheen field gas flaring reduction, 2007–13

Daily average

mm

scfd

120

100

80

60

40

20

02007 2008 2009 2010 2011 2012 2013

104.1

69.257.1

21.6 10.2 8.7 8.5

25%The percentage cut in diesel-fuel consumption by our vessels in

2013, part of Maersk Oil Qatar’s overall reduction in energy consumption

eneRgy managemenT Our environment strategy provides a framework for us to operate as efficiently as possible.

From environmental and commercial perspectives, we have every incentive to operate in the most economically and environmentally efficient way. Driving greater efficiency remains a challenge: as the Al Shaheen field matures, the energy required to produce hydrocarbons increases. Our total energy consumption declined again in 2013, following increases between 2009 and 2011. We reduced diesel-fuel consumption by our vessels by more than 25 per cent in 2013.

eneRgy managemenT InITIaTIvesWe have made major investments to minimise flaring and make our process equipment energy-efficient. Energy-efficiency is important in future field development planning: we have focused on our daily approach to work, with a view to improving reliability and efficiency.

FLaRIng ReduCTIonThe flaring of gas is primarily done for safety reasons or due to restrictions on capacity to export to downstream users. We have significantly reduced flaring in recent years, despite significant increases in hydrocarbon production since 2004, and in 2013 continued the downward trend.

The Al Shaheen Oil Field and Gas Recovery and Utilisation Project, carried out with QP, has led to significant reductions in flaring. We have cut average daily flaring rates by more than 90 per cent since 2007, thanks to new facilities for recovering associated gas and to the export of associated gas to North Field Alpha. In 2013, Maersk Oil Qatar commissioned a flaring-reduction study which recommended further long-term actions.

Maersk Oil Qatar flared 8.5 mmscfd in 2013, beating our 9 mmscfd target. Our target for 2014 is to flare 8 mmscfd or less.


WasTe heaT ReCoveRyMaersk Oil Qatar’s Field Development Plan (FDP) 2005 led to the installation of waste heat recovery units (WHRU) on gas compression modules on four offshore platforms. Waste heat recovered from turbine exhausts is used to heat the oil and water mixture produced from the wells to achieve the intended separation and reduces the need for direct-fired heaters.

As part of the FDP2012 project, we plan to add a waste heat recovery unit at A-location to improve energy and cost efficiency, and to reduce air emissions by lowering the load on the fuel-gas fired heater and heating media unit.

exCeLLenCe In maInTenanCe Our ‘maintenance excellence’ programme drives energy-efficient operations and articulates our goal of optimising plant reliability and availability. Proper planning of preventive maintenance cuts equipment downtime and the frequency of maintenance tasks.

Case studyResearch and technology

Research at the MO-RTC continues to examine possibilities for improved and enhanced oil recovery to maximise production. Maersk Oil has long applied improved oil recovery (IOR) techniques, such as water-flood operations, to increase the total proportion of oil and gas recovered. Water-flooding has been used in Qatar since 1996, with more than 140 injection wells in use, enabling economic development of the field, higher rates of recovery and a shorter time to achieve high rates of production.

We have also built experience in the use of enhanced oil recovery (EOR) water alternating gas (WAG) techniques at Al Shaheen – injecting high-pressure gas, then water, to increase the displacement of oil from different parts of a reservoir. WAG relies on robust fluid models and

a good ‘equation of state’ (EoS) model to describe oil properties in combination with a range of injection gases. A laboratory study of gas injection in the Al Shaheen field has contributed to Maersk Oil’s capability in EoS modelling.

At the MO-RTC’s Digital Core Laboratory, meanwhile, researchers are using advanced digital core imaging to better understand the petro-physical and flow-related properties of carbonate rocks. The lab analyses oil-bearing rocks right down to their pores, typically ranging in size from 0.5 to 5 microns, 40 times smaller in diameter than a human hair. A computer tomography lab, opened in 2013, enables rock samples to be studied in three dimensions, improving understanding of how fluids move through rock in the Al Shaheen field.

“It is significant that Maersk Oil chose to locate its global research centre here in Doha. The Al Shaheen oil field is one of the most complex in the world, and the opportunity for our innovative scientists to develop new techniques of enhanced oil recovery here will bring benefits not only to Qatar but to the entire international oil and gas sector.”abdulrahman al emadiDirector, Maersk Oil Research and Technology Centre, Doha


n Flaring 12.48%

n Diesel (vessels and rigs) 6.49%

n Heavy fuel oil (FSOs) 5.94%

n Fuel gas 72.5%

n Process fugitive and vents 1.64%

n FSO vents 0.62%

Gasoline (warehouse) 0.07%

Jet fuel (helicopters) 0.25%

Sorces of direct GHG emissions

2013

Total* GHG emissions 2007 –13

2007 2008 2009 2010 2011 2012 2013

3.5

2.4

2.2

1.8

1.6

Mill

ion

tonn

es C

O2eq

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

1.8

1.6

*Total = direct + indirect GHG emissions

gReenhouse gas emIssIonsThe reduction in flaring over the past five years is reflected in a declining trend of GHG emissions, particularly CO2 emissions, from our operations. Detailed, independently verified data on our greenhouse gas and other air emissions are provided in Appendix I on page 54.

The rate of decline has slowed as offshore facilities and equipment have come on stream that boost our capacity to export associated gas, but require more energy. Fuel gas use represented 72.5 per cent of our GHG emissions in 2013, with flaring the next most significant source.

The principal sources are the combustion of fuel gas (the main fuel for offshore turbines and heaters) and the heavy fuel oil used on our FSOs. SO2 emissions depend on the quality of fuel, while NOx emissions depend on the type of combustion device.

SO2 emissions can affect human health and be a precursor to acid rain. NOx emissions may lead to the formation of atmospheric ozone and particulates, which result in smog and can have adverse health effects. They are local pollutants, and as our operations are located offshore, the health impact of these emissions is minimal.

Emissions of SO2 (approximately 4,100 tonnes) and NOx (approximately 6,300 tonnes) fell in 2013, continuing the trend since 2007. Emissions of VOCs, from fugitive emissions and uncombusted fuel gas, were lower in 2013 but similar to levels in 2011.

Other air emissions 2007–2013

voC

nox

sox

Thou

sand

tonn

es

2007 2008 2009 2010 2011 2012 2013

5.3 5 4.5 6.7 4.3 5.2 4.3

7.2 8.1 7.2 7 7.7 6.8 6.3

8.3 7.2 6.6 4.5 4.5 4.3 4.2

25

20

15

10

5

0

Direct GHG emissions from Maersk Oil operations in 2013 totalled almost 1.6 million tonnes of CO2 equivalent, lower than in 2012 and continuing the recent downward trend. Emissions are now less than half the level of 2007.

In addition, about 9,500 tonnes of indirect GHG emissions were emitted in 2013 by suppliers of electricity purchased by Maersk Oil for onshore offices and warehouse facilities.

oTheR aIR emIssIonsOur operations also give rise to emissions of volatile organic compounds (VOCs) and oxides of sulphur and nitrogen (SOx and NOx respectively), principally sulphur dioxide (SO2), nitrogen dioxide (NO2) and nitrous oxide (N2O).


BIodIveRsITyQatar has an abundance of marine life and Maersk Oil is working to better understand and preserve this unique biodiversity.

opeRaTIonaL monIToRIngWe routinely monitor the impact of our operations by sampling water and sediment for physical, chemical and biological (plankton) content, and for contaminants. We periodically use remotely operated vehicles (ROVs) for video assessment of flora and fauna around platforms and on the sea bed.

For new developments we assess potential impacts on biodiversity before work begins. An independent environmental impact assessment was conducted for our field development plan (FDP) 2012, which was approved by the Ministry of Environment. Implementation of our EMS ensures that all mitigation measures are being implemented and permit conditions adhered to.

We completed an environmental survey of the Al Shaheen field in early 2013, sampling a range of physical, chemical and biological parameters to determine water and sediment quality, and to characterise the benthic and planktonic communities. Data gathered was compared to previous surveys, Qatar’s environmental laws and international standards and guidelines. Overall, the area is in good health and generally improved condition – measured data were consistent with previous surveys and meet relevant standards and guidelines. Water and sediment quality have improved, with little or no detection of petroleum hydrocarbons and their derivatives.

Lessons learned from the survey will enhance future monitoring.

Research at MO-RTC supports our operational work. For example, new sampling techniques enable us to check DNA in water samples against a database to see what kind of organisms are present. Researchers are also modelling currents around the platforms, to understand their effect on the marine ecosystem.

ReseaRChIng The maRIne envIRonmenTWe continue to support research projects that explore the diversity of marine species in Qatari waters, in partnership with the Qatar Ministry of Environment.

Our flagship initiative is the Qatar Whale Shark Research Project, which involves satellite tagging of whale sharks and the deployment of other detection equipment around our platforms. The aim is to understand more about the behaviours, life cycles and migratory patterns of these majestic animals, of which little is currently known. The project was the subject of a BBC documentary in 2013.

The maeRsk oIL ChaIR In envIRonmenTaL engIneeRIngWith a focus on protecting Qatar’s marine habitats, Qatar University and Maersk Oil Qatar signed an agreement in 2011 to establish the Maersk Oil Chair in Environmental Engineering, supporting offshore environmental studies including a masters in environmental engineering at Qatar University’s College of Engineering. Also in 2013, we signed a new research agreement with Qatar University to identify improved solutions for the treatment of water produced during oil and gas extraction.


Case studyWhale shark research in 2013The achievements of the 2013 research season exceeded expectations: we launched 12 one-day trips to the Al Shaheen field, deploying satellite tags, acoustic receivers and acoustic tags, collecting tissue samples and identifying individual sharks – the project has identified more than 400, many of them logged in the global database (www.whaleshark.org). Again this year the sharks appeared in late April and disappeared in early October. The primary reason for the sharks aggregating in such large numbers is thought to be the sheer quantity of fish eggs produced in this period, primarily by mackerel tuna. Acoustic receivers monitored our tagged sharks throughout the season, and consistent reporting of whale shark sightings by offshore workers helped validate data and locate sharks in the field. The majority of sightings came between May (more than 450) and September (about 400). Observations indicate that the Al Shaheen area is one of the sharks’ most important feeding grounds in the Arabian Gulf.

www.qatarwhalesharkproject.com Information on the BBC documentary is available at www.bbc.co.uk/programmes/p014y5m7


Waste management 2009–13

3000

2500

2000

1500

1000

500

02009 2010 2011 2012 2013

Tonn

es

nRecycled (composting, reused, recycled) nDisposed (landfill, on-site storage, incineration, including controlled disposal of hazardous waste

percentage of waste recycled

2009 2010 2011 2012 2013

50 46 40 48 38

WasTe managemenTAs set out in our waste management plan, our objective is to minimise waste and promote reuse and recycling. The plan sets out our processes for managing waste in a safer, healthier and more environmentally responsible manner. As our waste streams continue to change, we will update the plan in 2014, based on industry best practice.

The waste we generate includes hazardous, non-hazardous and inert materials such as unused chemicals, paint, oily rags, used garnet, sludge, expired pyrotechnics, wood, scrap metals, paper and plastics.

In 2013, we ran a waste management awareness campaign that encouraged positive waste management practices. A short animated film and posters addressed themes such as waste minimisation and separation.

In 2014, our awareness campaigns will focus on reducing waste at source, and we will address contractual constraints, which may support reductions in waste generated.

WasTe voLumes and ReCyCLIngOur operations generated more non-hazardous and hazardous waste in 2013 than in 2012. The percentage of waste recycled decreased in 2013, but the overall amount increased.

694

682

756

881

724

1094

1005

1085

1042

1697

Hazardous waste is subject to the International Maritime Dangerous Goods (IMDG) code for the transport of dangerous goods by sea, including packing, labelling and segregation of incompatible substances. In 2013, we provided IMDG-related training on and offshore. Courses will continue in 2014 and 2015. Minimisation, reuse and recycling take priority over disposal, which, if necessary, is carried out with regulatory approval.


Our people


QatarizationSupporting Qatar’s drive towards a knowledge-based economy and working to develop capacity in line with the national development objectives are key focuses: we recognise the importance for Qatar of nurturing local talent, and are committed to providing opportunities and an attractive working environment for Qatari nationals.

In 2013, we launched a new five-year strategic Qatarization plan. It sets out how we aim to attract, develop and retain Qatari nationals, and includes a Qatari Leadership Programme. The strategy focuses on the quantity of Qataris, in terms of recruiting the best people, and the quality of development for existing Qatari employees and graduates. The strategy built on work carried out by our internal National Development Committee and takes into account future business priorities and market factors.

Maersk Oil Qatar continues to increase the number of Qataris employed year-on-year. At the end of 2013, 191 Qataris were employed: 177 direct hires, nine trainees on college and university sponsorships, and five on attachment from Qatar Petroleum. Maersk Oil Qatar increased the number of Qataris that it employs by 6 per cent compared with 2012. Qataris now make up 22 per cent of our employees. Of these, around 44 per cent are technical and engineering staff and 56 per cent support staff.

In close partnership with Qatar Petroleum, Maersk Oil has been developing Qatar’s largest offshore oil field for more than 20 years. Continued success in unlocking the potential of the Al Shaheen field will depend on the right experience, expertise and relationships. In particular, it will rely on an ability to attract, develop and retain qualified and ambitious Qatari employees. Maersk Oil Qatar offers exciting career opportunities and the prospect for individuals to help support Qatar’s future growth, development and prosperity.

Maersk Oil Qatar provides equal opportunity to all qualified employees and applicants without regard to race, colour, religion, gender, national origin, age, disability or marital status, and will not tolerate any harassment of employees, applicants for employment, or customers.

We are committed to providing world-class opportunities for our people. Outside our workplace, we are involved in capability-building across Qatari society, driven by our investment in long-term projects in health, environment and education. We also support local businesses through procurement of goods and services.

Maersk Oil Qatar regularly participates in career fairs and events arranged by local educational institutions. In 2013, we participated in more than 10 recruitment events and university fairs, and were a diamond sponsor at the Qatar Career Fair for the fifth consecutive year. Around 1,000 job applications were received following the fair, resulting in more than 100 interviews and 20 Qataris being hired.

We work with universities and schools in Qatar to promote science and engineering through sponsorship, technical presentations and school visits.

Attracting the very best people is a key factor in the success of our business

The strategy included a new multimedia campaign to boost recruitment and highlight our challenging but rewarding career opportunities. Maersk Oil Qatar Qatari employees featured prominently, encouraging their compatriots to ‘Find Your Place’ at Maersk Oil. The Find Your Place campaign featured in newspapers and online during December, while a dedicated website (www.findyourplace.qa) features personal stories and information about Maersk Oil Qatar’s employment programme and Qatarization Strategy. Social media are also being used.

Qatari employees at Maersk oil Qatar

2009 2010 2011 2012 2013

Number of Qataris 118 143 168 180 191

Percentage of MOQ employees 20 24 24 23 22

O u r p e o p l e 3 7

annual Qatarization gathering In 2013, Maersk Oil Qatar recognised its employees’ achievements at its fourth annual Qatarization gathering in Doha. Awards for long service and outstanding achievement were given to 30 Qataris, and two appreciation certificates were presented to employees who had advanced Qatarization within Maersk Oil. Guests from Qatar Petroleum, Qatar Foundation, Texas A&M Qatar, College of the North Atlantic Qatar, Georgetown University in Qatar and Carnegie Mellon University at Qatar attended.

The gathering heard about Maersk Oil Qatar’s contribution to local enterprises in the past year, including three deals with Gulf Drilling International valued at QR1.5 billion (US$428 million), in addition to the QR1.7 billion (US$475 million) spent with local businesses.

law and business administration, while the LeaderShape programme gave 60 outstanding students the opportunity to build leadership skills for the future.

We are also the exclusive sponsors and partners of the World Congress on Engineering Education, founded and hosted by Texas A&M University – Qatar, and we supported the Society of Petroleum Engineers, whose industry professionals share experience and expertise with high school and university students, and young engineers.

recruitMent and training We recruit, train and develop all our employees and pay particular attention to the needs of Qataris, offering sponsorships and internships to selected students willing to pursue studies related to our business, such as petroleum, chemical and mechanical engineering, and geology.

We visit high schools and support their events and initiatives. We offer scholarships to Qataris who perform well consistently. In 2013, eight nationals were awarded scholarships to study at the College of North Atlantic and two to pursue bachelor’s degrees in Qatar and the UK.

Find more information on our Action on Education initiative in the ‘Community and society’ section of this report.

educational liaisonMaersk Oil’s contribution to education in Qatar supports skills and capacity building in STEM (science, technology, engineering and mathematics) subjects, development of leadership capabilities, and supporting economic diversification.

We engaged widely with the education sector in 2013. One exciting initiative was the GO ROBOT schools programme and Robot Olympiad, which brings young people together to develop their skills in science, technology and engineering, and participate in national and international competition.

The Maersk Oil High Achievers Scholarship Programme supported exceptional Qatari students in science, engineering, geology,


Case studyShaikha Al WehaibiI have been working at Maersk for about one year now. Before joining, I knew Maersk Oil to be a company with a reputation for making a positive impact, and was aware of campaigns such as Action on Diabetes. Since I have been here, my good impressions have been reinforced. The ‘One Second’ campaign promoting road safety says a lot about the company.

My current role, as a learning and development co-ordinator, brings me into contact with new employees, helping them with on-boarding courses and guiding them on the opportunities available and what is expected of them. With a colleague I also administer the MITAS programme, which gives graduate engineers and geoscientists a variety of postings over two years.

As in any new job, my first year has had its challenges, but I really like the appreciation you receive for your work. Feedback instils a sense of achievement and encourages me to strive for better. I find it challenging working in a culture of high performance. However, our environment is open and friendly, and if you’re in a place where you feel comfortable and receive support, everything falls into place. As for the future? If you show commitment, the sky’s the limit.


ProMoting diversity and inclusionWe are proud of our diversity and see it as a genuine source of strength. Maersk Oil Qatar currently employs 862 people of more than 50 nationalities. Women make up 25 per cent of our workforce. During induction for new employees, cross-cultural awareness sessions build understanding of diversity and its benefits.

We promote diversity through:

• developing and enabling female talent through programmes such as our Qatari Unique Development Rotational Assignment graduate scheme for Qatari female engineers, which aids professional development while taking account of cultural needs and external commitments

• supporting female Qataris by making available part-time positions that help maintain a balance between a career and family life

• launching, in 2013, a Maersk Oil Qatar female leadership network to enable networking and experience-sharing

• improving awareness and understanding of how diversity and inclusion positively affect our business: our Leadership Development Programme integrates them into the leadership behaviours on which our leaders are assessed, and a mandatory training module guides leaders on the behaviours they need to demonstrate to inspire their teams

• a mandatory diversity-and-inclusion e-learning tool, which raises awareness and understanding, and guides employees on creating and sustaining an inclusive environment

Workforce develoPMent People thrive best when they are in charge of their career paths and professional growth. We provide a positive working environment, with tools and training programmes that encourage personal ownership of learning, and support employees in shaping their own careers.

All employees can tailor their personal development plans to their career preferences, goals and learning options. We offer overseas assignments in Maersk Oil offices globally as well as the Maersk International Technology and Science programme, an international two-year course to develop graduates into future leaders. Qatari employees are eligible for full-time university sponsorship and can take English language classes, available during work hours. Employees interested in learning Arabic are encouraged and given financial support.

Qatari develoPMent PrograMMeWe offer a Qatari development programme for recent graduates with no more than two years of work experience, but with the potential to assume key positions. The programme involves rotations between departments, enabling participants to gain insight and experience across the business.

In 2013, we assigned an instructor to provide soft skills training in addition to on-the-job training for the 14 participants. The participants include men and women, engineers and non-engineers.

86225%Percentage of Maersk Oil Qatar employees who are women

Total number of Maersk Oil Qatar employees


Workforce engageMentOpportunities for employees to engage with the company include regular surveys and meetings in which employees can have their say. Quarterly town hall meetings for all employees and senior management provide a business progress update, set out priority areas, and enable employees to exchange views.

Maersk Oil Qatar’s annual employee engagement survey helps us to better understand how we are performing as an organisation, as leaders and as teams. It measures four factors: satisfaction, advocacy, loyalty and pride. Employees can voice opinions confidentially on issues ranging from daily management, wellbeing and teamwork to career development. The survey shows how committed we are to what we do and how well

Qatari leadershiP Pool As a result of the new Qatarization Strategy, we have introduced the Qatari Leadership Pool initiative, to develop future Qatari leaders through structured career guidance and coaching. A Qatarization development adviser was appointed in November 2013 to drive the initiative, and by the end of the year 46 participants – mid-career Qataris with track records of consistent successful performance and potential to grow in leadership positions – had been identified.

In 2014, individual career management plans will be prepared, based on career goals and possible career paths, identifying target positions and a one to five-year timeline for progression.

we live our values. Its findings show us where we need to improve to establish a motivating place to work.

The annual survey is conducted online by an external company, and is anonymous and confidential. It includes around 50 questions on aspects of employee engagement, manager effectiveness, company strategy and company values.

In 2013, 90 per cent of employees responded, which is especially noteworthy due to activity levels at the time and to the survey taking place over the summer, during Ramadan. The overall engagement score, indicating overall employee commitment, was 72 per cent, a decline on 2012. Although this feedback was disappointing, almost three-quarters of our organisation feel engaged, in line with the overall AP Møller – Maersk rating.

Follow-up actions focus on three themes: pay for performance; teamwork and collaboration; and effective communication throughout a period of change. We are rolling out a new incentive scheme, still based on business and personal performance, but which will provide more transparency and make it easier for employees to understand the link between pay and performance. A new approach to compensation management will give leaders in Maersk Oil Qatar more impact on their employees’ salary levels.

To support better teamwork and collaboration, an organisational review will enable more effective cross-departmental interaction and new ways of working. Throughout the review, our focus will be on ensuring constant management attention to effective communication. We will also act to make the office environment more comfortable and efficient.

46Number of participants in the Qatari Leadership Pool initiative


Community and society


Our social investment programme, Action for Qatar, has three pillars, which target health and safety, the environment and culture, and education and capability building. Each strand is founded on a commitment to high-quality projects and robust partnerships that generate real, long-term impacts. The programme is underpinned by our continuing efforts on Qatarization, providing opportunities for Qataris to contribute to national development by building their skills and experience in their careers with us.

Our goal is to deliver projects that make best use of the knowledge and skills of Maersk Oil, the AP Møller – Maersk Group and other world-class companies to address Qatar’s needs. We want to build permanent capacity in Qatar by using the strong and enduring relationships we have with key organisations that can facilitate transformation within the country. Our relationships help deliver these goals and support our partners in achieving their long-term ambitions: we are building the capacity of local organisations and contributing to real improvements in lives in Qatar and of Qataris. Our social programmes will have a legacy that can be independently sustained for the benefit of Qatar in the long-term.

Maersk Oil is a fully committed partner to the State of Qatar, focused not only on maximising the potential of the Al Shaheen field, but also on playing an active part in realising the goals of the Qatar National Vision 2030.

Our partners include:

Ministry of InteriorMinistry of EnvironmentSupreme Education CouncilMinistry of EducationQatar PetroleumSupreme Council of HealthHamad HospitalQatar UniversityMichener Institute for Applied Health ScienceVirginia Commonwealth University QatarQatar Diabetes AssociationQatar AcademyPrimary Health Care CorporationAl Bayan Educational ComplexHamad Medical CorporationQatar Independent Technical SchoolQatar Museums Authority

Qatar Society of Petroleum EngineersQatar Olympic CommitteeQatar University Society of PetroleumEngineers Student ChapterQatar FoundationReach Out To AsiaBedaya Centre Qatar Science and Technology ParkSilatechCollege of the North Atlantic QatarAspireHamad Bin Khalifa UniversitySchools across QatarQatar National Traffic Safety CommitteeTraffic DepartmentTexas A&M University Qatar

C o m m u n i t y a n d s o c i e t y 4 3

ActiOn On HeAltH And SAfety

Through our Action on Health and Safety initiative, we address key public health issues and promote a healthier and safer living environment in Qatar. By harnessing the skills of leading civil society organisations and government, we aim to bring about a positive change in peoples’ lives.

One of our flagship programmes, Action on Diabetes, is a partnership initiative between the Supreme Council of Health, Qatar Diabetes Association (part of the Qatar Foundation), Hamad Medical Corporation, Primary Health Care Corporation, Maersk Oil and Novo Nordisk, a world leader in diabetes care. The project supports Qatari authorities in raising awareness of diabetes, helping those at risk avoid it, and supporting people

746Healthcare professionals trained by Action on Diabetes, one of our flagship programmes, during 2013

living with diabetes. 2013 marked the second full year of Action on Diabetes and involved 15 different initiatives.

The programme involves:

• research projects, to establish a baseline of knowledge about diabetes in Qatar and identify gaps and areas for intervention

• education – spreading knowledge and educating healthcare professionals, patients and the public

• raising awareness of diabetes (its causes, risk factors, symptoms and management) among the people of Qatar


Activities/projects

Data driven and research based

Disseminated through education

Generating awareness

Action on diabetes programme

Briefing bookDiabetes patient registryInsulin uptake researchChrildren’s risk factors researchNutrigenomics researchBurden of Diabetes studyObservatoryAdvisory board

Ramadan campaignWe Are Healthy KidsScreening campaignsMobile appWorkplace health monitoringSports DayCook book and food branding

Michener nurse trainingCNA trainingPatient waiting roomPatient packPhysicians’ training

Diabetes affects 366 million people globally, forecast to grow to 552 million in 2030, mostly in Africa, Middle East and south-east Asia.

Qatar has one of the highest rates of diabetes in the Middle East and North Africa region: around 215,000 people live with diabetes. The International Diabetes Federation estimates that healthcare spending on diabetes in Qatar in 2010 was US$2,269 per person. Action on Diabetes supports Qatar’s authorities in reducing the incidence of diabetes, raising awareness and stimulating action.

In 2013, Action on Diabetes launched screening and education programmes, conducted in-depth research, ran awareness campaigns and developed the skills of key diabetes stakeholders. It:

• screened 5,973 people for diabetes• educated approximately 7,300 schoolchildren • trained 746 health care professionals• received 24,050 visitors at Action on Diabetes

events• reached more than 850,000 people through

awareness campaigns• distributed 77,000 diabetes information and

education packs

www.action-on-diabetes.qa

Case studyAction on Diabetes at a glance 5,973

7,300

77,000

People screened for diabetes

School children educated

Diabetes information and education packs distributed


nAtiOnAl diAbeteS regiStryIn November 2013, the Action on Diabetes partners launched the Qatar National Diabetes Registry. This ambitious project is the first of its kind in Qatar and the region, providing healthcare professionals and researchers with a comprehensive central database and an online data-gathering tool. It enables healthcare authorities to monitor and compare treatments, share best practice, and improve knowledge and learning among healthcare organisations.

WOrkplAce Screening cAmpAignA mobile screening facility was launched by the Action on Diabetes partnership at the Qatar Petroleum Occupational Health conference. It is fitted with seven testing stations with space for six nurses and two diabetes educators. Equipment enables analysis of blood glucose, cholesterol, glycated haemoglobin, body mass index, and blood pressure. The facility will visit work locations across the country and has already been to Barwa, where 152 people were tested and given educational materials, and to Qatar University’s School of Art and Science to screen students and teachers, where 280 people were screened.

kAtArA diAbeteS Screening The Action on Diabetes partnership held its annual three-day screening and healthy living event at Katara Cultural Village in November. Activities included free diabetes testing and guidance from Hamad Hospital staff and the Supreme Council of Health; exercises for families highlighting the benefits of small dietary changes and exercise; cooking demonstrations and a Kids Zone featuring games and live workouts. The screening raised awareness and generated media coverage. More than 1,500 individuals were screened, a 25 per cent increase on 2012.

diAbeteS diAlOgue The partnership’s workshop and speaker series enables practitioners to inform others about diabetes and approaches to care. Four workshops were provided for staff at the Primary Health Care Corporation in 2013, and 130 general practitioners and educators participated in workshops run by endocrinologists from Hamad Medical Corporation. A workshop for 35 staff at Qatar Petroleum developed their knowledge of diabetes, and improved their ability to help employees combat and manage the condition.

Action on Health and Safety

1,500

432200

People screened for diabetes at the three-day screening and healthy living event at Katara Cultural Village

People tested at the mobile screening facility during 2013

Primary schools particpated in the We Are Healthy Kids programme


We Are HeAltHy kidS prOgrAmme Launched by the Supreme Council of Health, and sponsored by Maersk Oil Qatar, ‘Healthy Kids’ raises awareness in schools of the importance of exercise, how to select healthy food and the hazards of smoking. In 2013, the programme was introduced to all independent primary schools and was delivered to 200 schools between March and May, involving more than 200 teachers and 7,000 students.

nurSe trAining And AccreditAtiOn ScHemeIn collaboration with Qatar Diabetes Association and Canada’s Michener Institute, Action on Diabetes sponsored the first accredited graduate training programme in Qatar dedicated to equipping nurses with specialist skills in treating diabetes. The first participants graduated in September 2013 and a new intake will graduate in 2014.

QAtAr diAbeteS briefing bOOkAn early goal for Action on Diabetes was to identify critical facts and figures related to diabetes in Qatar: a diabetes awareness survey commissioned by Novo Nordisk with support from Maersk Oil Qatar informed the Qatar Diabetes Briefing Book. Further, an IPSOS survey revealed that 37 per cent of respondents were at risk of developing diabetes, but 93 per cent had never been informed of the risk; 46 per cent believed that diabetes does not lead to heart disease and 54 per cent that it does not lead to stroke, even though these are well-known complications.

Action on Diabetes distributed more than 1,000 copies of the briefing book to healthcare providers in Qatar and in Gulf Cooperation Council countries.

tHe mAerSk Oil / QAtAr petrOleum cHAllengeThe second Maersk Oil / Qatar Petroleum Challenge took place in November in the desert near Zakreet to raise awareness of diabetes and funding for diabetes care. Teams of five competed in a gruelling adventure that tested fitness, teamwork, mental ability and leadership skills. Over the two days, team members learned about the causes, symptoms and prevention of type-2 diabetes. Twenty-seven company teams participated, raising US$100,000 for the Qatar Diabetes Association. The winner was the QP Dukhan team, with Gasal second and Dolphin Energy third.

www.maerskoilandqpchallenge.com www.facebook.com/MaerskOilQPChallenge

ScHOOlS Olympic prOgrAmmeMaersk Oil Qatar is the exclusive sponsor of the Schools Olympic Programme, part of our commitment to support sport and promote healthy lifestyles. As part of the programme, Maersk Oil Qatar will deliver educational initiatives based on the theme of the Schools Olympic Programme each year. The 2013–14 theme was ‘Sports and Integrity’.

The programme lasts 7–8 months each year and involves 11 Olympic sports, inspiring young people in Qatar to play sport and live healthily. It culminates in the Paralympic Finals, usually in March, and the Olympic Finals, held at the Aspire Dome in April.


mAking QAtAr’S rOAdS SAferMaersk Oil Qatar is working to change attitudes to road safety in Qatar and make a major improvement to road safety behaviour. In 2013, with the Ministry of Interior and Virginia Commonwealth University Qatar, we developed and launched the new One Second! national road safety brand, supporting an identified need within the National Road Safety Strategy to create a unified road safety identity for the country and to change behaviour on the roads through education and awareness. One Second! initiatives launched during 2013 included educational and awareness-raising with children and students, promoting seat belt use, and increasing the use of baby seats.

www.onesecond.qawww.facebook.com/onesecondqatarwww.twitter.com/onesecondqatarwww.instagram.com/onesecondqatarwww.youtube.com/onesecondqatar

StudentS fOr rOAd SAfety Under the One Second! umbrella, we launched a Students for Road Safety programme in December 2013 for children aged 12–18. It involves presentations, interactive sessions and correct driving practice in a driving simulator developed by Williams Advanced Engineering at Qatar Science and Technology Park. The programme tours schools, with the aim of making children ambassadors for road safety at school and at home, and helping them to become safer drivers themselves when the time comes. The programme aims to reach tens of thousands of students in coming years.

bAby cAr SeAt cAmpAignWorking with the Ministry of Interior and the Supreme Health Council, we launched a baby car seat initiative to coincide with Ramadan. The ‘Qatar baby car seats programme’ provided 7,000 baby car seats for babies born at Hamad Women’s Hospital, was accompanied by a nationwide media campaign – TV, radio, online, cinema and street advertising – and involved the training of 188 nurses at Hamad Women’s Hospital.

HSe fOrum in energy 2013The ninth HSE in Energy Forum brought together 350 industrial stakeholders from the global energy sector to share information on how to reduce workplace fatalities, reinforce visible HSE leadership, improve workforce competency and integrate hazard prevention into mainstream business. The Maersk Oil Qatar stand focused on promoting road safety.

ActiOn On educAtiOn And cApAbility building

Through our programme on education and capacity building, we are contributing to local skills and capacity creation, focusing on science, technology, engineering and mathematics (STEM) and leadership development. The programme relates to needs identified in the QNV 2030 and the National Development Strategy 2011–16, which recognise the need for a diversified economy and for young people to follow education and careers in science. Through initiatives such as GO ROBOT and support for the World Congress on Engineering Education, we are sparking a life-long passion for science, technology and engineering, while building practical skills that can be used here and now.

We aim to motivate young people to pursue careers in science and engineering, which will reward them and their country, and will create the country’s future leaders.


Case studyThe GO ROBOT schools programme

Maersk Oil Qatar runs GO ROBOT, based on LEGO MindStorms robotics and involving the annual Qatar National Robot Olympiad, in partnership with the College of the North Atlantic – Qatar. The partnership aims to inspire interest and develop skills in science, technology, engineering and mathematics (STEM). The Qatar National Robot Olympiad nurtures young people’s creativity, teamwork and problem-solving skills in friendly competition.

From 2013, the Supreme Education Council has been patron of the GO ROBOT programme and Qatar Petroleum is a strategic partner. The partners are committed to promoting creative education in schools nationwide while working to build firm foundations for Qatar’s future.

In 2013, more than 230 teachers were trained and 750 students from 161 schools participated. Since the programme began in 2012, more than 1,500 students have been involved.

In November 2013, around 500 students participated in the Qatar National Robot Olympiad at the Doha Exhibition Centre. Ten teams from Qatar qualified to participate in the World Robot Finals in Indonesia, in which more than 400 teams from 30 countries competed. They participated in both open and regular categories, with one team placing ninth in the world. Qatar will host the 2015 World Finals.

Students participated in the Qatar National Robot Olympiad at the Doha Exhibition Centre

500


WOrld cOngreSS On engineering educAtiOn 2014 / Stem educAtOr Of tHe yeArMaersk Oil recognises the value of high standards in engineering education. Maersk Oil Qatar is the exclusive sponsor and industry partner of the annual World Congress on Engineering Education (WCEE), hosted by Texas A&M – Qatar. WCEE brings together leading academics, engineers and researchers, providing a platform to present results and development activities in modern engineering education and to exchange new techniques for preparing future engineers.

A new annual award and cash prize for the STEM Educator of the Year was launched in December 2013. By acknowledging those who excel in this field, the goal is to improve teaching practice and increase participation.

The inaugural WCEE, in January 2013, attracted more than 400 participants from Qatar and around the world, as well as local students and young professionals. Maersk Oil Qatar will be the exclusive partner again in 2014.

SOciety Of petrOleum engineerS, QAtAr univerSity cHApterMaersk Oil Qatar sponsored 13 students and two supervisors from the Qatar University Society of Petroleum Engineers student chapter to attend the SPE Annual Technical Conference and Exhibition 2013, in the United States, the leading technical conference for engineers in oil and gas exploration and production. The visit enabled the delegation to meet other SPE student chapters and gain experience and perspective from industry professionals.

QAtAr SOciety fOr petrOleum engineerSDuring 2013 Maersk Oil Qatar sponsored a number of Qatar Society of Petroleum Engineers (QSPE) events, including monthly meetings, and participated in technical presentations.

develOping future leAderSTo build the skills of the young people who will be the future leaders of Qatar, our education and capability building programme includes initiatives to develop leadership skills and experience. Producing internationally competitive graduates is central to Qatar’s human and economic development. With local universities, we have developed programmes that extend beyond standard teaching activities and enable high-potential students to test and develop their personal and professional skills.

leAderSHApeMaersk Oil Qatar is the exclusive sponsor and partner with Hamad Bin Khalifa University of the annual LeaderShape programme, which provides 60 high-achieving students with the opportunity to build their leadership capacity and skills. In the intensive six-day programme, university students are given the tools, skills, and knowledge needed to ‘lead with integrity’ in their society.

deSert leAderSHip cHAllenge: Hbku And QAtAr univerSityThe first Maersk Oil, Hamad Bin Khalifa University and Qatar University Leadership Challenge, held in November 2013, built on the success of the LeaderShape Programme. Fifty of Qatar’s future leaders, in eight teams, competed over two days in the desert at Zekreet, to develop leadership, team work and business strategy skills.

The students and facilitators received weeks of classroom leadership coaching before heading to the desert, where the challenges focused on gathering oil field data, purchasing exploration rights, and extracting and selling oil in an environmentally safe way.

“Through this engagement with students and teachers, we hope to better prepare students for college and careers as engineers and scientists. Maersk Oil Qatar has been the University’s strongest partner in these efforts to ensure Qatar gets the engineers it needs to fulfil the goals of the Qatar National Vision 2030 and the Qatar National Priorities Research Programme.”

dr mark Weichold, Dean and Chief Executive, Texas A&M – Qatar

“The LeaderShape and Desert Leadership Challenge programmes, sponsored by Maersk Oil, have become cornerstones of the Hamad Bin Khalifa University student experience. As HBKU continues its commitment to developing the leadership capacities of its students, these programmes play an integral role.”Ameena Hussain, Director of the Student Centre, Hamad Bin Khalifa University

Action on Education and Capability Building


ActiOn On envirOnment And culture

Qatar’s natural and cultural environment is rich and a valuable asset. The Qatar National Vision 2030 recognises the need to protect this heritage while pursuing economic growth.

MOQ fully embraces the need to operate in a manner that protects the natural and cultural environments. In our social programmes too, we support research, raise environmental awareness, promote education and outreach, and support organisations that protect biodiversity and contribute to Qatar’s environmental and cultural wealth.

Maersk Oil Qatar launched a major partnership with the Qatar Museums Authority in 2013 as principal sponsor of the Al Zubarah archaeological site. We participated in the inauguration of Al Zubarah as a UNESCO World Heritage site and have supported the redevelopment of Al Zubarah fort, the creation of a new visitor centre and an exhibition showcasing the location’s history. We have helped to improve access to the site and supported a schools education and community outreach programme that highlights Qatar’s cultural heritage.

Researchers at the Maersk Oil Research and Technology Centre (MO-RTC), are scanning rock samples, and creating images and 3D models, to help archaeologists to investigate sites in Qatar. The MO-RTC Digital Core Laboratory is the first of its kind in the Middle East and is home to the region’s only electron microscope. Its primary research topic is enhanced oil recovery methods, but its computed tomography and quantitative automated mineralogy techniques enable archaeologists to examine the mineralogy of archaeological finds and better understand their origins.

Case studyAl Zubarah: a UNESCO World Heritage site

“We are very proud to be the principal sponsor for Al Zubarah, which is closely tied to the rich history of the nation,” says Sheikh Faisal Al Thani, MOQ Deputy Managing Director. “Our support forms part of the cultural theme of our social investment programme, which is focused on developing and promoting Qatar’s culture for the benefit of the country and is aligned with the Qatar National Vision 2030.”


prOduced WAter reinjectiOn reSeArcH prOgrAmmeIn December 2013 MOQ signed an agreement with Qatar University to support a new two-year research project, at the university’s College of Engineering, to identify improved solutions for treating water produced during oil and gas extraction. MOQ will install a new pilot plant waste-water treatment test facility at the university, advancing the university’s goal of being a leading research institution in this field. The project also supports the marine-environment research at the Maersk Oil Research and Technology Centre in Doha.

Ultimately, the goal of the project is to quantify the performance of advanced water polishing technologies, and membrane technologies in particular, to identify alternative and or improved ways of treating produced water. The project will be overseen by Professor Simon Judd, holder of the Maersk Oil Chair of Environmental Engineering at Qatar University.

Action on Environment and Culture

SuppOrting lOcAl SupplierS

Maersk Oil can play a significant role in supporting local economies in countries where it operates. We support local businesses through a tender evaluation process that grants preferential terms to make local vendors’ bids more competitive: allowing an additional 5 per cent on goods and 10 per cent on services. We actively explore further ways to engage and support local business development.

In 2013, Maersk Oil Qatar purchased materials and services from countries including Singapore, the United Arab Emirates, Denmark and others. By far the largest expenditure, however, was in Qatar, where local suppliers benefited from approximately 70 per cent of our total spending.


$650 millionThe approximate value of Maersk Oil Qatar’s spending in 2013 on goods and services sourced locally

Case studyValuable relationships with local suppliers

Under the patronage of HE Dr Mohammed Bin Saleh Al Sada, Minister of Energy and Industry, in October 2013 Maersk Oil Qatar and Gulf Drilling International (GDI) signed a two-year contract for GDI’s B-341 jack-up drilling rig, and a three-year contract for a new GDI offshore accommodation jack-up. “In close partnership with Qatar Petroleum, Maersk Oil operates Qatar’s largest offshore oil field, Al Shaheen,” said Jakob Thomasen, CEO of Maersk Oil, speaking at the signing ceremony. “As a trusted and reliable operator, committed to supporting Qatar’s

National Vision of His Highness the Emir, Sheikh Tamim Bin Hamad Bin Khalifa Al Thani, Maersk Oil works closely with Qatari businesses to maximise local participation in its activities. Today’s signing with GDI is testimony to this commitment.”

The signings were the second and third major agreements between GDI and Maersk Oil Qatar in 2013. In February, the companies had signed a contract for the Al Jassra jack-up drilling rig. Together, the agreements signed between MOQ and

GDI in 2013 were worth approximately US$428.5 million (QR1.56 billion).

“We are very proud to provide an essential role in the field’s future development,” said Ibrahim Al Othman, GDI’s Chief Executive Officer, “and we are pleased that Maersk Oil is committed to using the services of a Qatar-based drilling company and to supporting Qatar’s National Vision of building local capacities and developing Qatari skills and competencies.”


Notes:* Environmental data were externally verified in 2008, 2009, 2011, 2012 and 2013.** Flaring volume includes all gas that is not exported or used for power generation.

*** Direct GHG emissions are emissions from sources operated by MOQ. Indirect GHG emissions are a consequence of MOQ activities, but emitted from sources operated by another entity.

**** Produced gas as defined by OGP (excludes recirculated and reinjected gas).

Appendix I: Sustainability performance in numbers

Units 2008 2009 2010 2011 2012 2013

Our employees

Number of full-time employees (FTE) number 548 585 603 703 790 862

Gender (female representation) % - - 26 25 21 25

Local (Qatari nationals) number 78 112 143 168 180 191

Employee engagement survey (favourable response) % 71 74 76 79 80 72

Safety performance

Lost-time injury frequency (LTIF) frequency 1.1 0.5 0.39 0.35 0.27 0.63

Fatalities number 0 0 0 0 0 0

Environmental performance

Energy consumption*

Fuel oil 1,000t 30 30 28 30 30 29

Diesel 1,000t 56 45 47 53 38 32

Natural gas mmscm 241 255 354 424 451 460

Energy consumption million Gj 13.3 13.4 18.8 22.0 21.8 20.9

Electricity (onshore facilities) 1,000kWh 5,110 5,100 10,100 9,346 10,892 10,936

Flaring of associated gas** mmscfd 69.2 57.1 21.6 10.2 8.7 8.5

Greenhouse gas (GHG) emissions***

Total GHG emissions 1,000t CO2eq 2,700 2,386 1,830 1,760 1,649 1,605

Direct GHG emissions (Scope 1 GHG Protocol)

CO2 1,000t 2,647 2,340 1,821 1,660 1,560 1516

CH5 1,000t CO2eq 49 46 44 50 43 43

N2O 1,000t CO2eq – – 35 37 36 34

HFC 1,000t CO2eq – – 1.2 3.8 1.5 2.2

PFC 1,000t CO2eq 0 0 0 0 0 0

SF6 1,000t CO2eq 0 0 0 0 0 0

Indirect GHG emissions (Scope 2 GHG Protocol)

CO2 1,000t 4.4 4.4 8.7 8.1 9.4 9.4

CH4 tCO2eq 1.2 1.2 2.5 2.3 2.6 2.7

N2O tCO2eq 1.8 1.8 3.6 3.4 3.9 3.9

Other air emissions

SOx 1,000t 7.2 6.6 4.5 4.5 4.3 4.2

NOx 1,000t 8.1 7.2 7.0 7.7 6.8 6.3

VOC 1,000t 5.0 4.5 6.7 4.3 5.2 4.3

Other resource consumption

Total waste tonnes 849 1,376 1,637 1,819 2,090 2,739

Recycled (composting, reused, recycled) tonnes – 694 756 724 1,005 1,042

Solid (landfill, on-site storage, incineration) tonnes – 611 788 861 876 1,330

Hazardous (controlled deposit) tonnes 32 71 93 233 209 367

Discharges to sea

Spills m3 0 1 3 0.12 0.2 0.15

Produced water discharges 1,000 m3 4,370 7,260 7,240 8,100 5,740 5,447

Average oil concentration in produced water discharged to sea mg/l 28.8 22.5 16.2 11.4 8.2 5.6

Production

Total hydrocarbon production 1,000t oil eq 20,180 17,380 17,700 16,870 17,021 16,862

Oil 1,000 bbl/day 331 298 307 302 302 298.5

Associated gas**** mmscfd 325 213 196 139 155 150


Appendix II: Issues and indicators

IPIECA issue category Ref. IPIECA indicator SDIR indicators Page

Environmental

Climate change and energy E1 Greenhouse gas emissions Direct greenhouse gas emissions (scope 1)Indirect Greenhouse gas emissions (scope 2)Companies with active climate change strategies

7, 32

E2 Energy use Direct energy useIndirect energy useEnergy exported to the gridNatural gas used

30

E3 Alternative energy sources Amount of renewable energy generated 30–31

E4 Flared gas Flaring 7, 30

Ecosystem services E5 Biodiversity and ecosystem services 33

E6 Fresh water Fresh water used (from purchased)Fresh water used (from company generated)

–

Local environmental impact E7 Other air emissions SOx producedNOx produced

32

E8 Spills to the environment Significant oil spills (more than one barrel)Volume of spills

29

E9 Discharges to water Produced water discharged to seaCooling water discharged to seaWater discharged (other than to sea)Water recycled or reused

28

E10 Waste Total waste disposedTotal waste recycled

35

Health and safety

Workforce protection HS1 Workforce participation 7, 18–20

HS2 Workforce health 24–25

HS3 Occupational injury and illness incidents Work hours (employees)Work hours (contractors)Employee fatalitiesContractor fatalitiesEmployee lost-time injuriesContractor lost-time injuriesEmployee total recordable injuriesContractor total recordable injuriesEmployee occupational illnesses

17

Product health, safety and environmental risk HS4 Product stewardship –

Process safety and asset integrity HS5 Process safety Loss of containment / process safety incidentsEmergency response drillsIncident investigation completion

7, 22–23

Social and economic

Community and society SE1 Local community impacts and engagement 7, 43–53

SE2 Indigenous peoples –

SE3 Involuntary resettlement –

SE4 Social investment Total social investment budget 43–53

Local content SE5 Local content practices 7, 53

SE6 Local hiring practices QatarizationNumber of jobs created

7, 37–38

SE7 Local procurement and supplier development Goods and services sourced locally 7, 53

Human rights SE8 Human rights due diligence 12

SE9 Human rights and suppliers 12–13

SE10 Security and human rights 12

Business ethics and transparency SE11 Preventing corruption Corruption or human rights incidents 12

SE12 Preventing corruption involving business partners 12

SE13 Transparency of payments to host governments 12

SE14 Public advocacy and lobbying 12

Labour practices SE15 Workforce diversity and inclusion Workforce sizeFemale employment

37, 40–41

SE16 Workforce engagement Employee satisfaction 41

SE17 Workforce training and development Average hours training per employee 40–41

SE18 Non-retaliation and grievance system Corruption or human rights incidents 11

Other:

Revenues –

Production – by main products 4–5

A p p e n d i c e s 5 5

Appendix III: Reporting processes

REPORtING PRINCIPLESIn preparing this report, we have considered the reporting principles below, which are widely accepted in sustainability reporting, and which feature in IPIECA, OGP and API reporting guidance. These principles have also been taken into consideration in our internal assurance process, described below.

Relevance We have sought to ensure the reported information appropriately reflects the sustainability issues facing the company by drawing on the key issues discussed by management over the reporting year, and covering issues which feature significantly in our risk register. We have also drawn on the guidance and expertise of Maersk Oil in developing an approach to assessing material issues, which is described in greater detail below.

To ensure the report addresses the needs of stakeholders – both internal and external to the company – we have drawn on our existing stakeholder mapping and our annual engagement plan, which identifies meetings, events and activities inside and outside Qatar that we participate in, allowing us to seek relevant engagement opportunities. We have also drawn on our day-to-day interaction with key stakeholders, notably Qatar Petroleum, whom we meet quarterly in technical committee and management committees. We have also drawn on our contact with regulatory bodies and the organisations we work with on social investment projects.

transparency We believe the report presents information in a clear, understandable, factual and coherent manner. In this section of the report, and where relevant elsewhere, we have described the processes, procedures, assumptions and limitations affecting report preparation. We have sought to be balanced in our discussion, by not only discussing our achievements but by transparently addressing challenges and areas of performance where we recognise there is room for improvement.

Completeness We believe that the information within the report presents a full picture of the performance of MOQ in the period from 1 Janaury to 31 December, and presents more recent information where this provides useful context.

The report covers both onshore and offshore operations. Onshore, this includes the headquarters office, the warehouse and the Al Khor yard. Offshore, this includes all platforms and associated infrastructure and drilling rigs for the period under contract. Information relating to vessels, helicopter travel and road transport associated with onshore and offshore activities is also included.

Consistency We have applied consistent approaches to the preparation of performance information, drawing on the guidance provided by the HSE enforcement and regulations directorate where this is available. We have considered the consistency of this year’s report, in comparison to previous MOQ sustainability reports, as part of our internal review process.

Accuracy Our independent internal audit team has undertaken a review of the accuracy of a sample of data items reported. Their work has also included review of associated claims in the report. This work has been carried out in accordance with formal processes for audit defined by the Maersk Group. We believe that all the information within the report is sufficiently precise to enable users to understand the relevance of information with a suitable level of confidence.

MAtERIALItyTo help us adhere to the reporting principles of relevance, transparency and completeness, we have used a structured process to determine the most important – or ‘material’ – issues that we should include in this report and to guide us on their relative importance. The process involved identifying and defining issues of importance to the business and to external stakeholders. To determine the issues of most importance from a company viewpoint, we reviewed internal documentation including plans, risk assessments, and management reports, and held individual discussions with managers. The stakeholder perspective was derived from our understanding of stakeholder concerns, learned from day-to-day interaction in the course of carrying out our business in Qatar. This was supplemented by a review of media coverage to provide a different insight into issues of relevance to the sector as a whole and MOQ in particular.

The issues identified were carefully defined, and then mapped on a ‘materiality matrix’ tool which positions each topic according to its significance to the business and to stakeholders. The issues raised relate primarily to the 2013 reporting year, but it is recognised that some of them are long-term challenges that are likely to remain relevant long into the future. The issues raised were: process safety; personal safety; production and reliability; governance; GHG emissions and flaring; Qatarization; the marine environment; worker rights and labour conditions; social investment programmes; recruitment and retention; science, engineering technology and mathematics training and education. The relative importance of any given issue may vary from year to year as our business evolves and stakeholder expectations and perceptions change. We intend to update the analysis annually in line with our annual reporting cycle. We also aim to develop our materiality assessment process for the report in future years.


REPORt ASSuRANCEMaersk Oil Qatar’s internal audit team, made up of trained auditors within the business who have all achieved the required levels of competency, carried out a review of data contained in the sustainability report to ensure the data is consistent, complete and accurate. The recommended reporting processes and five general reporting principles within the IPIECA Oil and Gas Industry Guidance on Voluntary Sustainability Reporting – transparency, relevance, consistency, completeness and accuracy – were used to guide the assurance and data review.

The review also followed the Maersk Oil auditing standard to make sure that the approach fulfilled the mandatory requirements for auditing within Maersk Oil Qatar and was carried out to the standards and consistency required. While this was the first time work of this kind had been undertaken on the sustainability report, the audit has now been factored into the annual audit programme, which is a requirement of our auditing procedure. As is required under our process, the audit team members were independent of the work or activities being audited.

The scope of the review covered checking the accuracy of a sample of data and accompanying statements within the report. The review also considered the overall process for preparing the sustainability report and identified opportunities for improvement. Specific emphasis was placed on meeting the requirements of the Sustainable Development Industry Reporting (SDIR) programme, which for 2013 involves reporting against 42 performance indicators. The assurance plan is to review all SDIR Performance Indicators by 2016. In this first year, the review focused on the following 11 SDIR indicators, selected to represent several of the material issues covered in the Sustainability Report 2013.

The following findings were made during the review process and have identified where the data is reliable and accurate, and a number of opportunities for improvement. From these, there are some actions (such as recommendations about the report preparation process and how data is obtained) that can be addressed within the next reporting cycle, or in future years. A full and detailed report is available in the Maersk Oil Qatar reporting system.

• While there was no evidence that total flaring, NOx produced and waste recycled data are not complete, or reported accurately and consistently based on the defined estimation methodology, the methodology could be improved through more detailed actual measurement of inputs. It was noted that this data was also verified by DNV and reported in the Annual Environmental Report 2013.

• For employee and contractor lost-time injuries (LTIs), the evidence reviewed indicated that data reported is all consistently tracked in the Maersk Oil Qatar reporting system. It was noted that one of the reported cases was incorrectly classified, although the impact was minor in that it did not affect the accuracy and completeness of the reported figures.

• Additional clarity is required on the reporting of heat stress cases and Maersk Oil Qatar should review the Directorate of HSE Regulations and Enforcement (DG) Guideline for Heat Stress Management in Oil and Gas Sector, DG-GDL-H-0004, as this could improve the consistency of reporting.

• Emergency response is a high-level activity in Maersk Oil Qatar and the emergency response drills have been carried out. An area identified for improvement was how the emergency response drills are documented.

• The evidence indicates that the incident investigation process is a reliable and thorough process within Maersk Oil Qatar. The process has improved further in 2013, with more detailed reporting and a more consistent approach to investigations. The Incident Reporting and Investigation procedure is currently being reviewed and a revised document is expected to be produced in 2014 which should improve clarity of the process.

• Statistics on Qatarization and female employment were correctly extracted from the Maersk Oil Qatar employee database, as was employee satisfaction data from the annual employee engagement survey.

CONCLuSIONAs a result of this review, a number of immediate actions were taken to improve the accuracy of four of the indicators. The auditor is not aware of any remaining inconsistencies that would affect the accuracy and completeness of the 11 performance indicators reviewed. The review has been beneficial in identifying a number of areas for further improving the quality of Sustainability Report data for Maersk Oil Qatar.

April 2014

Safety Environment People

Employee lost-time injuries

Total flaring Qatarization

Contractor lost-time injuries

NOx produced Female employment

Heat stress incidents Waste recycled Employee satisfaction

Incident investigation completion

Emergency response drills


Appendix IV: Abbreviations and definitions

AoD Action on Diabetes

APMM AP Møller - Maersk Group: parent company of Maersk Oil

Boe barrels of oil equivalent

bpd barrels per day

CENG College of Engineering: based at Qatar University

CH4 methane

CO2 carbon dioxide

EItI Extractive Industries Transparency Initiative

EMS environmental management system

EOR enhanced oil recovery

EPSA exploration and production-sharing agreement

FDP field development plan

FSO floating storage and offloading: offshore oil storage vessel

GHG greenhouse gas

HSSE health, safety, security and environment

IF Incident-free: safety enhancement programme at Maersk Oil Qatar

IFLt Incident-free Leadership Team: an initiative at Maersk Oil Qatar that is part of the Incident-free programme

IMO International Maritime Organisation

IOR improved oil recovery

IPIECA International Petroleum Industry Environmental Conservation Association

ISO 14001 International Environmental 2004 Management System Standard

LtI lost-time incident: a work-related injury which renders the injured person unable to perform his/her regular job or restricts their work capacity on any day after the day on which the accident occurred

LtIF lost-time incident frequency: the number of lost-time incidents per one million work hours

MItAS Maersk International Technology and Science Programme: a cross-business-unit, entry-level programme for engineers and geoscientists, the purpose of which is to strengthen the pipeline of potential technical leaders within the APMM Group

mmscfd million standard cubic feet per day

MOQ Maersk Oil Qatar

MO-RtC Maersk Oil Research and Technology Centre

NFA North Field Alpha

NOx nitrogen oxides

OSR oil spill response

Qu Qatar University

QuDRA Qatari Unique Development Rotational Assignment: graduate scheme for female Qatari engineers

RECSO Regional Clean Sea Organisation

SO2 sulphur dioxide

SPM single-point mooring: offshore mooring buoy

SRWG Social Responsibility Working Group: the IPIECA working group on human rights

toe tonnes of oil equivalent

uNGC United Nations Global Compact: internationally recognised framework for sustainability

VOCs volatile organic compounds

WAG water alternating gas



We welcome any questions, comments or suggestions you might have about this report and our performance. Please send your feedback to:

Maersk Oil QatarAl Jazi TowerDohaQatarPO Box 22050t +974 4401 3963F +974 4401 3403

www.maerskoil.com

FORWARD-LOOkING StAtEMENtSThis report contains forward-looking statements on expectations regarding the achievements and performance of Maersk Oil Qatar. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of Maersk Oil Qatar, may cause actual results and developments to differ materially from the expectations contained herein.

We value your feedback


Sustainability highlights in 2013

Approximate total spending by Maersk Oil Qatar on goods and services from local vendors

Achieved 90% flare reduction since 2007

Al Shaheen contributes approximately one-third of Qatar’s daily oil production:

the value of field development Maersk Oil has delivered over the past decade, working alongside Qatar Petroleum

of Maersk Oil Qatar employees answered favourably to the opinion survey question of whether the company is ‘committed to employee safety’

Completed three deals with Gulf Drilling International valued at

($428 million)

Trained a total of 346 onshore newcomers and more than 1,000 offshore new joiners on ‘Incident-free’ in 2013

Launched a new Global Management System in 2013, and examined the working conditions of our offshore workforce, with a view to protecting their health, safety and wellbeing

1,430Employees and contractors received Incident-free induction and leadership training

The Action on Diabetes programme screened 5,973 people for diabetes

With the Ministry of Interior we successfully developed and launched the new national road safety brand

to create a unified road safety identity for the country

Proud sponsors of

the UNESCO World Heritage archaeological site

$650 million

33offshore platforms

More than

300wells drilled

$9 billion

QR 1.5billion

More than 50% reduction in GHG emissions since 2007

Reduced produced water volumes in 2013 by 5% when compared with 2012

Continued to make reductions in our air emissions of SO2 and NOx

-90% -50% -5%

Launched a new five-year strategic,

focused on being able to recruit the best people in the market and providing high-quality development opportunities

QataRization planone

Second!

93%

5,973

7,300Educated approximately 7,300 school children on healthy living and risk factors

al zubaRah

Maersk

Oil Q

atar Su

stainability

Rep

ort 2013

Maersk Oil QatarAl Jazi Tower, Doha, Qatar

PO Box 22050Tel: +974 4401 3963 Fax: +974 4401 3403

www.maerskoil.comFollow us on Twitter @MaerskOilQatar

Maersk Oil Qatar

Sustainability Report 2013

Supporting Qatar National Vision 2030

Human

Social

Economic

Environmental

Documents

Supporting Qatar National Vision 2030 - maritimecsr.com · on goods and services from local vendors ... flare reduction since 2007 Al Shaheen contributes approximately one-third of