Wintershall HSE Annual Report 2012

Promoting resPonsibility. Health. Safety. Society. Environmental Protection.

Hse AnnuAl rePort 2012.

CONTENT.

03 HSE ANNUAL REPORT 2012 CONTENT

04 Foreword.

06 Company Profi le.

08 HSE at Wintershall.

18 Safety.

32 Environmental Protection.

52 Occupational Health.

56 Corporate Social Responsibility.

62 Outlook.

64 At a glance: 2012 KPIs.

66 Contact.

67 Imprint.

FOREWORD.

04 | 05 HSE ANNUAL REPORT 2012 FOREWORD

Energy is and always will be our business.

And energy is our future.

That’s why Wintershall strives to get even closer to the source, by

focusing on expanding exploration & production activities in Norway,

Russia, Argentina and the Middle East. For this, we are continuing

to work with tried and trusted partners and new ones as alike.

We take a sustainable approach to our energy future. For us, this

encompasses reconciling long-term commercial success with the

health and safety of all those involved and the protection of the

environment as well as our social responsibility.

As the leading German company in the exploration and production

of oil and gas, we are especially aware of our social responsibility.

After all, lasting economic success is not possible if we don’t pro-

tect health, safety and the environment (HSE). It is our aim to sys-

tematically reduce risks for people and the natural environment.

Therefore, HSE is our top priority. It is a fi rm part of our corporate

philosophy.

In 2012 we found another partner in Statoil who shares our views

on that. Like Wintershall, Statoil carries out its exploration & pro-

duction activities adhering to the highest environmental and safety

standards and is committed to extensive dialog with the public and

transparency. This is essential to creating acceptance for our activi-

ties. Additionally we are enhancing our partnership with Gazprom.

We are also pooling the technological skills of both companies in

the development of blocks IV and V of the Urengoy fi eld in develop-

ing the challenging reservoir of the Achimov horizon. We are also

Dear Ladies and Gentlemen,

going to be an active operator in Abu Dhabi. We can rely on 40 years

of experience when carrying out technical assessments of the

Shuweihat sour gas and condensate fi eld.

In Germany, we celebrated two jubilees. In Emlichheim, we produced

our 10 millionth tonne of crude oil. And we have been producing oil

from the Mittelplate fi eld in the ecologically challenging Wadden

Sea for 25 years. And with our tight gas project Düste and the

Schizophyllan fi eld test in Bockstedt we are proving that there is a

defi nite future for production in Germany! I was particularly proud

that the statutory accident insurance association for the raw mate-

rials and chemicals industry awarded four employees from the

Rehden site the occupational safety award for the development of

a system that makes the transport of pressurized gas cylinders

easier and safer. Also Winterhall’s own HSE award this year went to

Germany for a solution that optimizes the separation of quicksilver

in gas production.

Despite diffi cult conditions, we have achieved a lot in Libya. Daily

production is almost back to the maximum technical possible level.

We also see it as our responsibility to pragmatically support the

country’s development. Together with the Libyan national oil com-

pany NOC and AGOCO, we are working on establishing an export

infrastructure meeting international standards. And in 2013 we will

also support setting up health care in the Oasis of Jakhira.

The success that we had with our strategy in 2012 is refl ected in

our outstanding results. Wintershall managed to increase crude oil

and natural gas production to 144 million barrels of oil equivalent,

up from 113 in 2011. The company was able to increase its turnover

in 2012 by 39% to 16.7 billion euros compared to the previous year.

Of that fi gure, 5.33 billion euros were generated from Exploration &

Production and 11.37 billion from Natural Gas Trading.

In the fi eld of occupational health and safety our ambitious goal is

zero accidents in all our activities. Despite overall good results in 2012,

there is still room for improvement. After almost three years of zero

accidents, one of our own employees suffered a lost time injury (LTI)

and the frequency of accidents suffered by our contractors has

increased. Although safety-conscious work is the company’s top

priority and is practiced within the company, in 2013 we will have to

devote more attention and show even greater commitment to health

and safety at work. We will also have to take more responsibility for

health and safety and also demonstrate this. In day to day activities

each and every employee must pay more attention to their own safety

and that of their colleagues. The same goes for all contractors who

work for the Wintershall Group. At Wintershall, everybody counts!

Our targets for environmental protection support a sustainable de-

velopment. At the end of 2012, we discontinued fl aring associated

gas in routine operations in order to meet the highest international

standards. You can fi nd more information on that in this report

which specifi cally deals with the topic of fl aring and possible alter-

natives to it. Furthermore, as usual the report contains a summary

of our activities in the area of health, safety and the environment in

2012 as well as key performance indicators, which have been veri-

fi ed through an independent audit by KPMG.

We also intend to signifi cantly increase our investments in a sustain-

able future. At the top of our agenda is the development of environ-

mentally friendly solutions for the exploration and production of

hydrocarbons. These include genuine innovations, such as the bio-

polymer Schizophyllan. The idea came from nature itself. The base

material is a fungus. The biopolymer is biodegradable and in oil pro-

duction an eco-effi cient application. Wintershall strives to develop

a new environmentally friendly technology based on this innovation,

jointly with BASF in order to signifi cantly increase the oil recovery

rates of reservoirs. Together with BASF, we are also investigating

the development of environmentally friendly fracking fl uids.

None of this would be possible without competent, innovative, ex-

ceptionally motivated and, most importantly, healthy employees.

Therefore, something close to my heart is that Wintershall provides

the best possible working conditions. I am convinced that we are

exceptionally well prepared and that together we will be able to

overcome any future challenges in order to achieve a sustainable

and safe future.

Wintershall – promoting responsibility.

Dr. Rainer Seele

Chairman of the Board of Executive Directors

06 | 07 HSE ANNUAL REPORT 2012 COmPANy PROfiLE

Wintershall, based in Kassel, Germany, has been actively involved in the exploration and production of crude oil and natural gas for more than 80 years. Wintershall focuses on selected core regions, where the company has built up a high level of regional and technological expertise. These are Europe, North Africa, South America, as well as Russia and the Caspian Sea region. it is also expanding its activities in the middle East. The company, a wholly-owned subsidiary of BASf, is now the largest German pro-ducer of crude oil and natural gas, and with its gas trading and transport subsidiaries, is also an important gas supplier to the German and European market.

Core regions and activities of Wintershall.

South AmericA

ruSSiA

cASpiAn SeA region

middle eAStnorth AfricA

South AmericA

europegermAnY

08 | 09 HSE ANNUAL REPORT 2012 HSE AT WINTERSHALL

HSE AT WINTERSHALL.OUR PHILOSOPHY.

We assume responsibility – for people and the environment.

Values, standards and guidelines serve to protect the public and the

environment, but, fi rst and foremost, also our most important resource:

our staff. Our aim is to create the best possible working conditions

for our employees as well as opportunities for personal development,

enabling them to realize their potential.

Policy for Health, Safety and Environment Protection (HSE) As an important member of the BASF Group, Wintershall operates in the area

of exploration and production of oil and gas. In this Wintershall combines fi nancial

success with societal accountability and protection of the environment.

Therefore Wintershall’s management is strongly committed to adhere to the following

HSE-principles:

■ We view HSE as an integral part of all our activities and strive for continuous

improvement of our HSE performance. As a contribution to this we set our-selves

ambitious goals and develop tailor-made HSE-solutions.

■ We are convinced: “Everybody counts.” – Everyone working within the Wintershall

organization contributes to the implementation of this policy through well-thought-out

and dedicated action. This is equally valid for contractor companies of Wintershall.

■ We are going to perform our worldwide activities in such a manner, that we fulfi ll our

societal responsibility, especially concerning our employees, contractor employees,

our neighbors and the general public.

■ We rise to our responsibility for the global climate protection.

■ We pledge ourselves to adhere to international conventions, the local laws and

our self-set standards while performing our worldwide activities.

Economic success does not prevail over health, safety or environmental issues. Nothing

is so urgent or important, that justifi es neglecting these HSE principles.

The Board of Executive Directors

Dr. Seele Bachmann Dr. Tiessen Dr. König Mehren

Wintershall has laid down its position on HSE in a policy. Our HSE policy

is a core element of how we see ourselves and an important embodiment

of the key objectives of our company.

Policy.


HSE management system.

Our HSE policy is not an empty promise: it is fully integrated in all

our activities. Our HSE management system ensures that all our

principles for protecting health, the environment and occupational

safety are adequately taken into account. Our intelligent HSE man-

agement system helps us to reliably achieve what we really believe

in: combining commercial success with safety standards, social re-

sponsibility and environmental protection.

Thus, in the planning, development, implementation and monitoring

of our HSE policy we work according to an internationally recog-

nized standard often used in the oil and gas industry – known as

the 12-element model. These 12 elements are then grouped into

four steps. The result is a consistently effective way of implement-

ing our HSE policy.

We are constantly striving to improve the company-wide

HSE management system (WINS) by conducting an inten-

sive experience exchange and dialog between experts from

the headquarter, Operating Companies (OPCOs) and Busi-

ness Units (BUs) at Wintershall’s global locations through

our involvement in committees of the International Associa-

tion of Oil and Gas Producers (OGP) and national associa-

tions such as the German oil and gas industry association,

Wirtschaftsverband Erdöl- und Erdgasgewinnung e.V. (WEG).

Well-planned 1. Policy, leadership & commitment

2. Hazards, risks, legal

& business requirements

3. Objectives, targets & HSE Programmes

Implemented 4. Organisation structure, roles & responsibilities

5. Training & competence

6. Communication & consultation

7. HSE MS documentation

8. Operational control

9. Emergency preparedness & response

Notifi ed 10. Incident reporting, investigation

& corrective action

11. Monitoring & measurement

System improved 12. Management review & system improvement

SYSTEMATIC HSE – SUCCESSFUL AND SAFE.4 STEPS – 12 ELEMENTS

Management.

Project management.

Wintershall has many years of experience in developing reservoirs

that are diffi cult to access and are geologically challenging. Hence,

every new exploration project places high demands in terms of plan-

ning. Above all, exploration in unknown regions requires particular

support for the employees and contractors on the ground. That is

why HSE experts support the project teams from an early stage.

Apart from feasibility studies for a project, examination of environ-

mental and safety aspects is an integral part of planning. This includes

environmental impact studies and process safety analyses, as well as

selection of contractors on the basis of HSE considerations. During

advance expeditions to the exploration area, risks are identifi ed and

suitable measures to minimize them are defi ned and summarized in

an HSE project plan.

Safety engineers regularly supervise and control activities during

the execution phase. Emergency concepts formulated at the out-

set are constantly reviewed and adapted as necessary.

Compliance with the relevant regulations and HSE standards is

ensured also in the operating phase. All projects at Wintershall are

planned and carried out according to the same HSE procedures.

Contractor management.

Many projects in the oil and gas industry are unimaginable without

the support of external experts. That is why Wintershall uses contrac-

tors in various areas, including large specialist fi rms to conduct drill-

ing campaigns, construction companies in infrastructure projects or

smaller subcontractors at the administrative locations.

Wintershall’s selection criteria for contractors are not limited to com-

mercial aspects. Environmental protection as well as occupational

health, safety and social standards are also taken into account in

assessing new and existing contractor re lation ships. With regards

to compliance with HSE standards, the Winters hall Group places

the same high requirements on its contractors as on its own em-

ployees. Consequently, the company applies strict criteria in the

selection of contractors and reviews these criteria regularly.

Incident management.

Wintershall promotes safety at work through risk assessments,

procedures, seminars, training courses and audits. Reporting and

investigation of incidents plays a key role in prevention and helps

increase the standard of safety even further. Wintershall has estab-

lished a reporting system that includes all locations worldwide. De-

tailed analysis of incidents helps to identify and assess their causes.

Incidents where there was a high severity potential are also investi-

gated. The results are used to derive measures to prevent incidents

in future.

Crisis management.

Wintershall’s HSE management system purpose is to prevent inci-

dents. However, in order to be able to respond to unexpected events,

Wintershall has a clearly defi ned and interdisciplinary crisis man-

agement system. Only a planned and organized approach ensures

the best-possible prevention and management of emergencies.

Emergency plans, regu lar safety exercises and annual drills for ma-

jor incidents aim to ensure an ideal response. Training courses help

sensitize and prepare employees. HSE experts and management

are responsible for drawing up, maintaining and supervising the

measures and documentation for emergency planning.


Acting sustainably.

An example of our work to protect the environment and the climate

is our “No Flaring Policy.” As part of this policy we have committed

to stop fl aring associated gas by the end of 2012. Existing facilities

have been retrofi tted to accommodate this objective and new

facilities are designed with integrated associated gas utilization.

This saves around two million tonnes of CO2 a year. Consequently,

Wintershall meets the highest international standards for environ-

mentally friendly oil production.

2020 environmental target already achieved.No Flaring Policy.

Wintershall works according to the highest safety, environmental

protection and transparency standards as a matter of principle. As

part of a voluntarily negotiated agreement, Wintershall forgoes the

use of drilling and fracking technology in sensitive regions such as

water protection areas. We also limit our drilling activities to a few

central well sites so as to use as little land space as possible. We

do not use hydraulic fracturing in the immediate vicinity of old coal

and other mines. The hydraulic fracturing liquid we use for fracking

does not exceed the currently applicable water hazard classifi cation

level 1 (= slightly hazardous to water). The integrity of our wells’ casing

is regularly tested. The safety standards formulated by Wintershall

also apply to all contractor companies.

Voluntarily self-committment.

A mission statement substantiates the environmental protection

guidelines from the Wintershall Group’s HSE policy. It illustrates just

how important environmental protection is for Wintershall and governs

the company’s environmental management through detailed guide-

lines. The aim is to minimize environmental impacts. We protect

sensitive habitats and preserve biodiversity. To do that, we employ

environmentally friendly and effi cient technology and methods and

promote innovative research and development. As part of our busi-

ness processes, we rely on suitable methods such as environmental

impact assessments, appraisals, inspection, risk analyses, monitor-

ing programs, management reviews and audits. And we ensure

that our communication is transparent and open.

Environmental protection statement. Setting standards.

OUR ACTIVITIES.

The exploration, production and transport of crude oil and natural gas always also entails an intervention in the social

and natural environment that requires particular care. Even before we start our operations, we assess the potential

impact on people and the environment, taking social aspects and the protection of cultural heritage into account.

We are constantly working on improving all our processes to use resources even more effi ciently and further minimize

the impact on people and the environment.

In 2012 we surpassed our subsidiary company Gascade’s target of

reducing specifi c CO2 emissions in transport of natural gas. The

specifi c CO2 emissions were accounted for in terms of the amount

of natural gas transported and the hauling distance covered. The

reduction target was 10% by 2020 in relation to the base year

2010: by bringing particularly energy-effi cient pipelines on line we

have been able to reduce the fi gure by 22.15%. With an increase in

the degree of capacity utilization of the pipelines and the related

increase in energy consumption for our natural gas compressors,

specifi c emissions will increase in the future.

ACTIVELY WORKING FOR PEOPLE AND THE ENVIRONMENT.


What was the biggest challenge in 2012?

The biggest challenge actually ended up being the biggest success

story: the implementation of the company’s “No Flaring” target.

Making good use of associated gas from oil production in routine

operations instead of fl aring it, seems like the obvious thing to do

these days, yet in taking this step Wintershall is an exemption in the

industry. We are particularly pleased that we have could achieve

largest CO2 reductions in the Libyan Desert. This proves that environ-

mental protection is not only possible and necessary in highly devel-

oped industrialized countries, but also everywhere around the world.

What other success stories have made you proud?

The award from the statutory accident insurance association for the

raw materials and chemicals industry, for example. The award-win-

ning system for the safe transportation of pressurized gas cylinders

was developed by a team of employees on their own initiative. The

award is proof that our occupational health and safety work is ex-

tremely innovative and that we are progressing in the right direction.

For years Wintershall has also had its own internal HSE award in

order to encourage employees to improve safety standards.

Why is it so important to get employees involved?

In general, the idea is to create a greater sense of personal respon-

sibility, not just in terms of innovation, but in day-to-day life. If each

and every employee pays attention to their own safety and that of

their colleagues, the likelihood of accidents automatically reduces

itself. That applies to contractors as well, of course. We want to

create a culture of safety and ensure that people are aware of the

need for safe conduct. The entire Board of Executive Directors

wholeheartedly supports us on that front.

Which challenges will the company face next year?

One of our central tasks, which will be very challenging, is to inte-

grate the Norwegian production platform Brage. Assuming opera-

tion of the platform means that we need to integrate it into our HSE

concept. We don’t want to simply tear up the previous operator’s

tried and tested safety and environmental systems; instead we will

replace some of them where we have better solutions. We will also

continue with our economic and humanitarian commitments in

Libya in order to create better conditions for the population in the

long-terms.

IN DISCUSSION:

Corporate HSE Manager

Guido Schnieders talks

about current and future

health, safety and

environment requirements.

Pay attention for each other!

ASSUME RESPONSIBILITY.


AWARDED EMPLOYEES.

Nominees HSE-Award 2012

Innovative solutions in the fi eld of health, safety and environment

are encouraged at Wintershall. Since 2007, the company has been

giving out an award for exceptional HSE projects and, since 2010,

also an award for simple solutions. Every two years, this award re-

wards proactive measures that have been successfully implemented

at the company and have resulted in a clear improvement in the

fi eld of HSE. The aim is to continuously improve HSE performance.

All submitted applications are made available to the sites around the

world, so that. they can be taken up and adopted by other teams.

The HSE Projects category is characterized by large-scale solutions

that tend to redefi ne technical processes. In 2012, the award win-

ner for this category was announced for the fi fth time. The Simple

Solutions category recognizes simple but by no means less valua-

ble solutions that have tangible effects on everyday work through

small changes. Both technical and organizational measures can

win the award.

HSE Award 2012 rewards German operations.

Nearly all of our locations submitted ideas for the 2012 challenge.

In total, 23 entries were received. In the HSE Projects category, the

winning entry dealt with optimizing the separation of mercury in

natural gas production in Rehden. The facilities in Rehden were

modifi ed so that mercury could be removed from the gas prior to

compression and removal of fuel gas so that it is no longer present

in the process. There is therefore no longer any risk of maintenance

staff getting into contact with the mercury and environmental risks

are further reduced at the same time.

In the Simple Solutions category, the winning entry was a magnetic

board specially designed for platforms or sites with little space which

makes emergency management easier. In the event of an incident,

it combines all the relevant measures and information and structures

them using symbols. This helps those in charge of the platform to

understand what is happening more quickly.

An award for innovative solutions.

Natural gas production:

Optimization of the

separation of mercury.

Emergency Response Board –

At a glance.

AWARD

HSE

SAFETY.

18 | 19 HSE ANNUAL REPORT 2012 SAFETY

ALWAYS THE NUMBER ONE PRIORITY.

Our Employees’ safety is Wintershall’s top priority – whether they are

our own employees or contractors. Responsibility, a pro-active approach

and personal commitment from everyone are vital to ensuring a high

standard Safety in the long term.

Our managers take on responsibility for their employees so that every

single one of them feels safe at work and returns back home healthy.

The same applies to our contractors, who have to meet strict

requirements but are also actively supported in their HSE work.

SAFETY FIRST.

20 | 21 HSE ANNUAL REPORT 2012 SAFETY

All the data presented in this report and bases for calculations are

in line with national and international standards in the E&P industry.

As a member of the International Association of Oil and Gas Pro-

ducers (OGP) and the German oil and gas industry association,

Wirtschaftsverband Erdöl- und Erdgasgewinnung e.V. (WEG), Win-

tershall uses the defi nitions of both internationally recognized as-

sociations when compiling data.

Despite overall good results in 2012, there is still room for improve-

ment. We recorded the fi rst Lost Time Injury (LTI) for almost three

years with one of our own employees. This gives us a Lost Time

Injury Frequency (LTIF) of 0.2. There is also room for improvement

with Wintershall Group contractors. The number of LTIs in 2012

rose to 10, giving us a LTIF of 1.48 compared to 0.75 in 2011.

These fi gures result in an overall LTIF for the Wintershall group of

0.93 in 2012. More extensive measures to prevent such accidents

in the future have been defi ned and actively implemented. Each

and every employee will also have to pay even more attention to

their own safety and that of their colleagues than before. The same

applies to all contractors who work for the Wintershall Group.

In terms of its occupational safety, Wintershall is still one of the most

successful companies within the BASF Group and in the German

E&P industry. Always working with safety in mind is the company’s

top priority and is practiced within the day-to-day work. Our goal in

2013 is to avoid any type of incident. With enhanced standards and

even more commitment, we strive to continuously improve the high

safety level and our performance. We are working hard to create an

active culture of safety and encourage employees to take personal

responsibility for their actions. Management and employees sup-

port this safety culture and are implementing it.

Regular training sessions help to avoid accidents but also inform

the staff how to behave in an emergency. In 2012, the Wintershall

Group carried out numerous large-scale drills all around the world.

One of them was one of the largest, industry-wide emergency drills

in Norway with over 600 participants as well as the annual major

incident drill at the natural gas storage facility in Rehden.

Key Performance Indicators for Occupational Safety.

Wintershall / WINGAS Contractors

Year 2012 2011 2012 2011

Number of employees* 2,514 2,281 3,136 3,213

Working hours 5,094,822 4,158,736 6,753,346 6,651,894

Fatal accidents (FAT) 0 0 0 0

Incident with > 1 day lost (LTI) 1 0 10 5

Lost Time Injury Frequency per

million working hours (LTIF)0.20 0 1.48 0.75

*Excluding temporary employees; part-time employees pro rata.

22 | 23 HSE ANNUAL REPORT 2012 SAFETY | ACTIVITIES

OCCUPATIONAL SAFETY WORLDWIDE:

OUR ACTIVITIES IN 2012.

Wintershall applies special safety measures in its exploration and

production activities offshore. This applies to material and technol-

ogy but also to personnel. Due to the fact that there is no stipulated

training for working on platforms, Wintershall provides its own inter-

nal training in order to provide junior staff members with the compe-

tencies required for offshore work. The platform qualifi cation focuses

on safety-related issues and is completed after two years with a

theoretical and practical test. All offshore employees also receive

safety-related inductions and take part in regular drills.

The Netherlands and Great Britain.

With its low water depths and low reservoir pressure, the North Sea

is a very safe production environment. Nonetheless, in response to

the unfortunate events in the Gulf of Mexico, the E&P industry has

raised standards further. As a result, Wintershall supported the

development of a capping device to be deployed in case of a well

control incident, under the umbrella of the International Association

of Oil and Gas Producers (OGP). The cylindrical construction can

be transported from its base on the Scottish coast to any part of

the North Sea extremely quickly in order to seal a well in a con-

trolled way. Since 2012 it is available.

The device has its own power supply and complex control technol-

ogy. It acts as a large bottle cap: in an emergency, it can be lowered

from the deck of a ship and placed over an out-of-control well.

Then, any leaking oil or gas can be safely transported away and

counter pressure can be built up against the reservoir, using remote-

controlled valves. This allows for experts to drill relief wells and per-

manently seal the well with cement. Only then is the cap removed

and transported back to its base in Aberdeen. Despite the fact that

it weighs 40 tonnes, it can be transported using small vessels, as

the emergency device can be disassembled.

The technology is primarily suitable for deeper areas that cannot be

readily accessed by divers. It has been constructed for water depths

ranging from 100 to 3,000 meters and can remain on the seabed for

up to one year. The material is particularly resilient in order to with-

stand the water pressure and low ambient temperatures at depth.

Capping Device for boreholes.

Platform qualifi cation.

Wintershall Norge organizes one of Norway’s largest ever emergency drills.

Appropriate emergency plans and drills are standard. In emergen-

cies, however, cooperation with rescue and relief units and authori-

ties is paramount. In November 2012, Wintershall led one of the oil

and gas industry’s emergency exercises in Norway. It was hosted by

the Operators’ Emergency Response Association (OERA), of which

Wintershall forms a part. As part of the drill, a helicopter accident

was simulated off the Norwegian coast near Kristiansund. Strategic

nerve centers were set up offshore, at the airport and in hospitals

as well as a control room in a hotel. All processes, including medical

treatment of the injured, were acted out by the 600+ participants.

Wintershall set up crisis teams in Stavanger and Kassel in order to

coordinate the rescue and recovery measures and to introduce

other steps such as briefi ng the media. Preparations for the drill

lasted a year and the drill was carried out under realistic conditions


Norway.

in order to highlight potential areas for improvement. It also helped

with getting acquainted with the other stakeholders.

HSE Family Day.

Around 180 employees and their families participated in the fi rst

HSE Family Day in Norway in 2012. The aim of the day was to high-

light safety risks in people’s private lives given that safety isn’t just

something to be aware of at work. At various stations, visitors were

able to play games on incident prevention and correct conduct in

the event of an emergency. Particular focus was placed on children

who haven’t yet the experience to be able to assess situations

properly yet. They were introduced to topics such as the dangers

of road traffi c or fi rst aid, depending on their age.

COORDINATION AND TEAMWORK.


Abu Dhabi.

An agreement has been signed between the Abu Dhabi National Oil Company (ADNOC),

Wintershall and OMV for the technical appraisal of the Shuweihat sour gas and condensate fi eld.

Competent sour gas prodution.

The Shuwaihat fi eld in Abu Dhabi has promising deposits of hydro-

carbons. Despite initial evidence at the end of the 1950s, extraction

of the natural gas was considered impossible for a long time, since

it was sour gas. The extraction of the gas, recognizable for its sour,

sulfuric smell, poses high demands on material, technology and

HSE precautions. Wintershall has many years of expertise in the

safe development of sour gas reservoirs and will assess the fi eld in

the Persian Gulf from a technical perspective for the fi rst time.

The fi rst appraisal well is planned for mid-2013. A drilling rig that is

designed for sour gas service will be used. Used pipes are made

from resilient special steel, and a variety of gas detectors and cut-off

valves are installed in order to rule out any uncontrolled discharge

of hydrogen sulfi de. The safety features of the drilling project include

extensive risk analyses, that identify potential hazards in advance

and lay down corresponding safety measures, equipment specifi -

cations, emergency plans and training sessions for the drilling crew.

An extensive exclusion zone is also set up in order to prevent en-

dangering of the general puplic.

The appraisal phase should be concluded latest 2017. If the out-

come is positive, economic development of the Shuweihat fi eld

could commence. All production facilities would then have to be

designed to accommodate for sour gas. For example, a purifi cation

plant would separate out the hydrogen sulfi de using a solvent. This

could then be transformed into pure sulfur which could be used as

a raw material in the pharmaceutical or fertilizer production.

As part of the appraisal project in Abu Dhabi, Wintershall can make

use of its proven know-how in the production of sour gas. The com-

pany’s experience stretches back as far as 1961 when the Düste

fi eld was discovered. Since then, Wintershall has developed 16 fi elds

in Germany, produced 20 billion cubic meters of sour gas and in-

stalled four plants for gas purifi cation.

Sour gasSour gas is natural gas that contains hydrogen sulfi de and carbon

dioxide. Both components are extremely corrosive and can attack

production plants and pipelines if they have not been properly pro-

tected. Hydrogen sulfi de is also higher toxic at low concentrations.

New pipeline for safe transport.

During the political unrest in Libya in 2011, Wintershall had ceased

local production for several months in order to rule out any danger

for the environment, people and facilities. After the situation was

assessed safe, Wintershall became one of the fi rst companies to

recommence operations. At the same time, it helped to reconstruct

the country’s infrastructure and economy and, as a result, also sup-

ported other companies.

Together with the National Oil Corporation, a Libyan state-owned

company, Wintershall in 2012 began to construct a 50-km long oil

pipeline in the desert. It replaces an existing pipeline installed by the

Arabian Gulf Oil Company (AGOCO), which transports oil from the

Nafoora fi eld and the Wintershall concession C96 to a terminal in

the Amal fi eld. Due to the disrupture in operations the old pipeline

lost its integrity: in dips, water could collect in the empty pipe and

caused corrosion.

Through the replacement pipeline, oil can be safely transported to the

Amal fi eld again, from where it is taken to the export port Ras Lanuf.

Life-Saving Rules.

In order to improve production safety in Libya’s production, the lo-

cal employees have drawn up their own Life-Saving Rules (LSRs)

which highlight the specifi c hazards at their site. Based on recom-

mendations of the International Association of Oil & Gas Producers,

an internal team of experts identifi ed potential hazards that could

lead to accidents. The Life-Saving Rules are a set of mandatory

rules. They are designed to raise employees’ awareness of hazards

and hazardous conduct at the workplace and hence contribute to

reducing the number of accidents and injuries.

Libya.


Wintershall has a strong partner in developing safety solutions. As

part of the Scientifi c and Technical Cooperation (STC) with the Rus-

sian natural gas producer Gazprom, the HSE experts of both com-

panies regularly share information and expertise. Wintershall and

Gazprom started to exchange knowledge and experience in 1992.

The companies pool their expertise covering all activities in the nat-

ural gas business. The topics of health, safety, environment and

sustainability are gaining more and more importance. Together the

experts search for solutions in saving energy in the production,

storage and transport of natural gas or making technical processes

safer and more environmentally friendly. Both companies benefi t

from the HSE-related cooperation. It is planned to expand the cor-

porartion over the next few years in order to continually improve

HSE standards.

20 years of “Scientifi c and Technical Cooperation”.

Russia.


Innovative ideas that improve safety in day-to-day work are not only

rewarded by Wintershall internally. In 2012 a team of Wintershall

employees received the award from the statutory accident insur-

ance association for the raw materials and chemicals industry. Four

Wintershall employees from the Rehden site in Lower Saxony de-

veloped a special system with which pressurized gas cylinders can

be lifted on to vans easily and safely.

Previously, loading and transporting pressurized gas cylinders held

safety concerns. The gas cylinders, weighing up to 80kg each, al-

ways had to be carried by two people and could easily slip out of

their hands due to their round shape and smooth surface. The solu-

tion was a combined holding, loading and transportation system

fi rmly connected to the vehicle. This results in one person being

able to perform the loading and unloading safely without risking

injury to their back. Since each gas cylinder is tilted on the loading

area, only around a quarter of its weight actually needs to be lifted.

The cylinder is put onto the loading area using a rail guide and

locked in place ready for transportation.

The statutory accident insurance association recognized the one-man

transportation system as an innovative development in which “safe-

ty, ergonomics and economic effi ciency go hand in hand”. The system

stood out thanks to its broad fi eld of application in many industries.

Germany and Europe.

Wintershall receives renowned award for occupational safety.

Safety is of a high priority at Wintershall every day. The

company takes its responsibility in terms of the environ-

ment, the population and its own employees very seriously,

every day of the year. As part of the fi rst BASF Global Safety

Days in autumn 2012, various HSE topics were put in the

spotlight. Presentations and additional information were

used to encourage employees at the various locations to

consider safety aspects in their conduct. As part of the

Safety Days, the OGP’s 18 Life-Saving Rules were present-

ed, which Wintershall helped to develop. The rules aim to

increase employees’ awareness of hazards at the workplace.

Other awareness-raising days dealt with sustainable oper-

ations, natural gas as an environmentally friendly source of

energy, ergonomics at work and hearing protecting during

leisure time.

Global Safety Days.

The International Association of Oil & Gas Producers (OGP)

has created standardized rules for preventing accidents at

work. The 18 so-called OGP Life-Saving Rules are based

on extensive studies of accidents that were reported to the

association by member companies over the last 20 years.

Analysis has shown that a large proportion of the accidents

could have been prevented if basic safety rules had been

followed. Wintershall worked hard to contribute to stand-

ardizing the rules. As an OGP member, Wintershall is

obliged to integrate the Life-Saving Rules into all of its busi-

ness activities.

Standardized Life-Saving Rules for the E&P industry.

The Core Life-Saving Rules* for the Oil & Gas Industry

There is a significant risk of dropped

objects when using tools and port-

able equipment at height. Preventing

objects from falling keeps you and

people working below you safe.

A journey management plan is a plan

for you as a driver that will help you

to travel and arrive safely.

FOLLOW PRESCRIBED

JOURNEY MANAGEMENT PLAN

PREVENT DROPPED OBJECTS

Isolation separates you from danger,

such as electricity, pressure, toxic

materials, poisonous gas, chemicals,

hot liquids or radiation to keep you

safe. Specified life-protecting equip-

ment by the work permit, such as

breathing apparatus, electrical arc

flash protection or chemical resistant

suits protect you from danger.

VERIFY ISOLATION BEFORE

WORK BEGINS, USE THE SPECIFIED

LIFE PROTECTING EQUIPMENT

Working “in the line of fire” of

moving equipment (e.g. cranes

and other vehicles) and energised

equipment (e.g. rotating , electrical

or pressurised machinery) is unsafe

as this can impact you.

POSITION YOURSELF IN A SAFE

ZONE IN RELATION TO MOVING

AND ENERGISED EQUIPMENT

Air is tested to stop explosions

and/or make sure you can

breathe the air safely.

CONDUCT GAS TESTS

WHEN REQUIRED

PROTECT YOURSELF AGAINST A

FALL WHEN WORKING AT HEIGHT

Personal flotation devices should

always be worn when there is a

danger of falling into water. When

working near or on water, wearing a

personal flotation device (e.g. life

jackets or buoyancy aids) protects

you from drowning.

WEAR A PERSONAL FLOTATION

DEVICE WHEN REQUIRED

A lift plan describes how to lift and

hoist safely. For routine lifts, there

needs to be a general lift plan. For

non-routine lifts, including complex

and heavy lifts, the plan is specific.

FOLLOW PRESCRIBED LIFT PLAN

Working or walking immediately

under a suspended load is unsafe

as the load can fall on you.

DO NOT WALK UNDER

A SUSPENDED LOAD

Working with equipment immediately

under or near overhead lines is

unsafe as an electrical current or

flashover can kill you. Maintain

adequate distance to keep you safe.

DO NOT WORK UNDER OR

NEAR OVERHEAD ELECTRIC

POWER LINES

A seat belt protects you from injury

in the event of an incident while

driving and keeps you safe.

WEAR YOUR SEAT BELT

Speeding or using your phone while

driving increases the risk of losing

control of your vehicle.

WHILE DRIVING, DO NOT USE

YOUR PHONE AND DO NOT

EXCEED SPEED LIMITS

*developed by OGP

Use fall protection equipment

when working outside a protective

environment where you can fall

over 1.8 meters (6 feet) to keep

you safe.

A work permit describes what you

must do to stay safe.

WORK WITH A VALID WORK

PERMIT WHEN REQUIRED

Safety-critical equipment must work

correctly to keep you safe.

OBTAIN AUTHORISATION BEFORE

OVERRIDING OR DISABLING

SAFETY CRITICAL EQUIPMENT

Excavation activities may contain

hazards such as electrical cables,

confined space, collapse of walls or

excavated material. Check that it is

safe to start work.


STARTING EXCAVATION ACTIVITIES

A confined space, such as a vessel,

tank or pipe can contain explosive

gas, poisonous air or other dangers

such as a lack of oxygen, things that

can fall on you or you can fall from.

Authorised access keeps you safe.


ENTERING A CONFINED SPACE

Using alcohol or illegal drugs,

or misusing legal drugs or other

substances, will reduce your ability

to do your job safely.

Smoking or use of matches or cigarette

lighters could set on fire flammable

materials. Designated smoking areas,

such as a smoking hut or a smoking

room, will keep you safe from causing

fire and explosion.

DO NOT SMOKE OUTSIDE

DESIGNATED SMOKING AREAS

NO ALCOHOL OR DRUGS

WHILE WORKING OR DRIVING

GENERAL

PERSONAL SAFETY

AUTHORISATION

LOADS AND LIFTING

DRIVING

32 | 33 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION

Wintershall Group is committed to the responsible use of natural

resour ces in the exploration, fi eld development, production and

transport of hydrocarbons. We face the challenges by acting responsibly,

applying high standards and driving technical innovation.

Environmental protection is in our own fi nancial interests. Therefore,

the preservation of natural resources, the prevention of emissions and

waste are integral parts of the exploration and production process.

A key factor to our success is effi cient use of the resources required

to fi nd and produce reserves with new or improved methods and

therefore to minimize.

ENVIRONMENTAL PROTECTION.

FOR SAFEFUTURE.

We have stopped fl aring,

thereby implementing our No Flaring Policy.

Global fl aring of associated gas destroys valuable energy sources. At the same time, large quantities of greenhouse

gases are emitted into the atmosphere. In order to set an example of a responsible and sustainable approach to

resource management and the environment, Wintershall had set itself the target of ceasing to fl are associated gas in

routine operations by the end of 2012. This voluntarily self-imposed commitment goes far beyond what is required by

law and standards and is unique in the industry.

34 | 35 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION | NO FLARING POLICY

On production of crude oil, associated gases come to surface with

it. For a long time, they were viewed as a useless by-product, par-

ticularly in areas without any existing gas infrastructure. It was cus-

tomary practice to burn (fl are) the unused natural gas on site. Many

people therefore associate a burning gas fl are with oil production.

However, in the meantime, fl aring has begun to be seen as eco-

nomically and ecologically questionable as the fossil energy in the

associated gas is simply lost and cannot be used. Also a lot of

greenhouse gases are emitted, which make up a large proportion

of the E&P industry’s overall emissions.

A few years ago, Wintershall began to search for alternative solu-

tions. Thanks to investments in innovative technology, the company

has since been able to continually reduce fl aring at its production

sites. Most recently, 95% of the associated gas was effi ciently used

for generating electricity and heat, preventing around two million

tonnes of CO2 equivalent emissions a year. The reduction is around

60% of Wintershall’s entire emissions previously. In 2012, the com-

pany’s “No Flaring Policy” was fully implemented: from now on, no

associated gas will ever be fl ared at any production sites as part of

regular operations. Flaring will only be used in exceptional cases,

for example when testing a well or as part of maintenance and repair

work. All new facilities are built with a unit for using the associated

gas, and old facilities were retrofi tted accordingly.

Pioneer in Libya.

This has enabled the company to considerably improve the sus-

tainability of its activities. The activities in Libya account for the lion’s

share of the effi cient use of associated gas. The crucial factor in this

was the development of the As Sarah oil fi eld which enabled Win-

tershall to considerably increase production: because, up until now,

fl aring had been the only option in the desert region for channeling

off the escaping associated gas, environmental impacts would

have been serious. Instead, Wintershall built a special facility for

gas utilization. In the Gas Utilization Plant (GUP), the natural gas is

processed so that it can be used to generate electricity. Some of

the gas is used to increase the capacity of the company’s own

power station. Any excess gas is sold off and is used for generating

electricity for the region and the capital city, Tripoli. At the same time,

any condensate accumulated during the gas processing is trans-

ferred through pipelines to a terminal belonging to the Libyan oil

company Zueitina where it is processed further.

Wintershall also uses a gas lift facility at the As Sarah fi eld. Addition-

ally Wintershall operates a gas lift facility at the As-Sarah fi eld. There

associated gas is compressed and injected into the well. This re-

duces the hydrostatic weight of the oil column and allows production

to take place using less energy. Since the other Libyan production

locations are connected to the central processing facilities of the

As Sarah and Nahkla fi elds, Wintershall has been able to proceed

without any fl aring whatsoever and put all of the associated gas to

good use, and is the fi rst oil company in Libya to do so. Invest-

ments were made although not legally obligatory and no additional

revenue is associated with the generation of tradable emission cer-

tifi cates as Libya is not a Party to the Kyoto Protocol.

Innovative technologies at German sites.

Wintershall has also pushed ahead with various projects in Germany

in order to implement the No Flaring strategy by the end of 2012.

The last gas fl are was extinguished in Landau in Palatinate. The as-

sociated gas will be used to generate heat for the facility in the future.

In Aitingen in Bavaria, a micro gas turbine was tested and later

permanently put into operation.

The main benefi ts for the environment in Germany have been in

Emlichheim. Wintershall set up a compressor associated gas, which

accumulates in the course of oil refi ning. Due to low pressure, it

was not possible to use the gas in the past and it had to be fl ared

for safety reasons. The compressor reaches a pressure of four bar.

It can then be fed to the steam fl ooding plant where it can be used

as fuel for steam generation. This protects the environment on two

levels: every year, around one million cubic meters less of fresh gas

need to be purchased and emissions at the site are reduced too.

A cogeneration unit is supporting this too, which is used in crude oil

loading. It generates heat and power from associated gas that

forms in the storage tanks of the tank wagons and previously would

have been fl ared. As a result of these new innovations, Emlichheim

now produces more than 1,300 tonnes of CO2 equivalent less a

year. The overall CO2 emissions were reduced by 25,000 tonnes on

account of the construction of a powerful combined heat and power

plant. It uses previously unused uneconomically viable natural gas

to produce power and steam for production.

All of the measures together have led to a signifi cant increase in the

effi ciency and sustainability of Wintershall’s oil production. Associ-

ated gas is now used, generally on site at the facilities. This reduces

the need for transporting and additional emissions. At a time when

fl aring is still practiced in many regions by many companies, these

examples show just how well economic and ecological goals can

work hand in hand.

36 | 37 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION | NO FLARING POLICY

GOAL ACHIEVED: WINTERSHALL STOPS FLARING.

38 | 39 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION I KPIs

As a wholly-owned subsidiary of BASF SE, Wintershall is commit-

ted to the Responsible Care Initiative. In accordance with BASF’s

Responsible Care Reporting Guidelines, environmental emissions

relating to the production of crude oil and natural gas are reported

as a ratio of Wintershall’s participating interest in the consortium in

question. As a member of the International Association of Oil & Gas

Producers (OGP), Wintershall has been reporting its environmental

emissions in exploration and production as part of the OGP’s

“Environmental Performance in the E&P Industry” report since 2006.

Water.

Production and waste water is generated in the exploration and pro-

duction of crude oil and natural gas. We try to recycle as much water

as we can by using innovative technologies and closed systems.

In 2012 a total of 15.5 million m3 of water were used (2011: 10.7

million m3), with the majority being produced reservoir water with a

volume of 13.2 million m3 (2011: 9.5 million m3). Around 9.2 million m3

of reservoir water were re-injected into the reservoirs after being

separated from the crude oil and natural gas at the surface and

cleaned. A total of 4 million m3 of production water from our off-

shore platforms were discharged into the sea after being cleaned in

compliance with the statutory threshold limits.

Around 2.3 million m3 of other types of waste water were also gener-

ated. Examples are the waste water generated by the construction

and operation of cavern storage facilities (solution mining) or during

cleaning operations and water treatment.

Waste water is also cleaned and disposed of in line with regulations

at locations where Wintershall is not connected to the public sew-

erage system.

2012 Key Performance Indicators

for environmental protection.

Environmental protection.

We have been able to reduce greenhouse gas emissions with

numerous projects aimed at improving energy effi ciency. As such,

Wintershall’s crude oil plants today supply operations in Germany

with in-house produced electricity and use micro gas turbines,

cogeneration plants and combined heat and power plants to do

this, for example at Bockstedt and Emlichheim. Gas, which pre-

viously could not be used cost-effectively, is used to generate

electricity and steam. The application of this new technology has

reduced CO2 emissions by around 31,000 tonnes per annum.

The WINGAS Group also strongly supports efforts to implement

the change in energy policy in Germany (known as the “energy

transition”) and in particular is examining the possibilities of trad-

ing, storing and transporting the gas harnessed from renewable

energies, known as “power to gas.”

Reservoir wateris a mixture of water, salt, hydrocarbons and other materials which

occur naturally in the reservoir alongside oil and gas. Reservoir water

is produced together with the oil and gas.

Energy.

We use electrical energy to produce, process and transport crude

oil and natural gas, for example to drive pumps and compressors,

as well as thermal energy in the form of steam to produce oil. Depend-

ing on the location of our production sites relative to the supply net-

works, we obtain electricity from the public grid or produce it our-

selves at remote locations. In 2012 we used a total of 759,390 MWh

in electrical energy and 469,486 tonnes of steam for our processes.

We are constantly working to improve energy effi ciency in energy

use and generation. Examples are the commissioning of a highly

effi cient combined heat and power generation (CHP) plant at our

Emlichheim location in Germany and installation of a system to en-

able use of exhaust heat at a gas turbine generator plant in Nakhla

in Libya.

Waste.

Waste can be generated during the exploration and production of

crude oil and natural gas as a result of the production processes.

We try to avoid such waste wherever possible. Unavoidable waste is

recycled and disposed of according to regulations. Wintershall also

disposes of waste properly and in an environmentally friendly way

in regions where there are no public or private means of disposal.

Waste is classifi ed, stored, handled, transported and disposed of in

accordance with the applicable legislation of the country in ques-

tion. In addition, Wintershall adheres to international and company

standards. Waste is classifi ed into the categories “hazardous waste”

and “non-hazardous waste” according to EU regulations.

160,837 tonnes of waste were produced at Wintershall in 2012

(2011: 80,436). Of that, 131,147 tonnes were hazardous waste

(2011: 49,987) and 29,690 tonnes were non-hazardous waste

(2011: 30,449). Approximately 16.8% of the waste was recycled or

subject to energy recovery, 2.7% was burned and 80.5% was dis-

posed of in accordance with regulations.

In 2012, a large proportion of the waste, especially in Germany, ac-

crued due to measures concerning the recultivation of three drilling

fl uid waste sites and operational waste sites, renaturation, restora-

tion of drilling sites, reorganization of existing production sites, ex-

tensive drilling and construction activities.

RETREAT,CULTIVATION,RENATURATION.

40 | 41 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION I EMISSIONS

Reducing emissions.

Emissions are created in the exploration, production and transpor-

tation of crude oil and natural gas as a result of the energy required

in these tasks – energy must be generated or imported in the form

of electricity, process heat, steam and pressure. Since the produc-

tion facilities are often located in remote areas, energy must be

generated on site, normally using fossil sources, such as gas, heat-

ing oil or diesel. These emit a number of substances into the air

during thermal conversion. Other processes where substances are

emitted into the air are the discontinuous fl aring of associated gas

or condensate during production for safety reasons or as part of

maintenance measures.

As Germany’s largest producer of crude oil and natural gas and

a company that operates worldwide, Wintershall accepts its re-

sponsibility to protect the global climate. Apart from complying with

international conventions, local laws and our own standards, we

help to reduce emissions by developing and using leading-edge

technologies and new or improved methods to increase energy

effi ciency, thus continually reducing the impact on the environment,

energy consumption and also costs at the same time.

Infl uencing factors.

Greenhouse gas emissions associated with the production of crude

oil and natural gas fl uctuate for a number of production-related rea-

sons. Projects, such as development of new fi elds, testing of wells,

construction of pipelines or scheduled plant shutdowns for mainte-

nance or repair work, as well as safety reasons may infl uence the

volume of greenhouse gas emissions.

Emissions.

TECHNOLOGY ANDENVIRONMENTAL PROTECTION.


Emissions in 2012 (t) Emissions in 2011 (t)

SOURCE OF CO2 EMISSIONS

Production processes 856,135 945,808

Indirect (import/export of electricity/steam) 87,790 98,673

Direct (electricity and steam production) 406,452 298,975

SOURCE OF CH4 EMISSIONS

Production, undifferentiated 3,164 4,057

INORGANIC SUBSTANCES

Total inorganic substances 3,441 2,808

Carbon monoxide (CO) 1,299 1,277

Nitrogen oxides (NOx) as NO2 1,914 1,311

Sulfur oxides (SO2+SO3) as SO2 228 217

ORGANIC SUBSTANCES

Non-methane volatile organic compounds (NMVOC)

1,553 2,347

OTHER SUBSTANCES

Particulate matter 29 26

Greenhouse gas emissions.

Emissions released into the air are regularly monitored in accord-

ance with statutory stipulations and our own standards. As well as

greenhouse gas emissions, we ascertain emissions of air pollutants.

These include inorganic gases such as carbon monoxide (CO), nitro-

gen dioxide (NO2) and sulfur dioxide (SO2). Apart from carbon dioxide

(CO2), nitrous oxide (N2O) and methane (CH4), no other greenhouse

gases are emitted by Wintershall.

In 2012, Wintershall slightly increased its overall greenhouse gas

emissions by 0.5% compared to the previous year. As a result of

the Wintershall Group’s production, in 2012 a total of 1.35 million

tonnes of CO2 (2011: 1.34 million tonnes of CO2) and 3,164 tonnes

of CH4 (2011: 4,057 tonnes of CH4) were emitted. In terms of

Wintershall’s production of crude oil, natural gas and condensate,

specifi c emissions amounted to 0.06 tonnes of CO2/toe (2011:

0.07 tonnes of CO2/toe).

The increase in greenhouse gas emissions is primarily a result of

the rise in production in Libya. The fl aring of associated gas was

necessary for safety reasons due to the temporary closure of the

production facilities in 2011 on account of the political unrest.

Emissions of other substances.

Some fossil fuels, such as natural gas, heating oil or diesel, which

emit various substances into the air during thermal conversion, are

used for power generation and production at our operating sites.

Emissions of inorganic substances rose to 3,441 tonnes in 2012.

This increase is primarily due to the restarting of the production

facilities in Libya following the political unrest in the North African

country. Daily production is almost back up to the maximum techni-

cally possible level.

Emissions trading at Wintershall.

In Europe, 13 plants within the Wintershall Group are subject to the

legal requirements of emissions trading within the second trading

period. As well as the plants in Germany, this affects two produc-

tion platforms in the Netherlands. In 2012, the German Emissions

Trading Authority (DEHSt) and the Dutch Emissions Authority (NEa)

allotted our plants 808,051 EU allowances (EUA/a). Our European

plants that are required to take part in the emissions trading system

emitted a total of 492,934 tonnes of CO2.

Wintershall is already making preparations for the third emissions

trading period which runs from 2013 to 2020. It is necessary to

reapply for the EU allowances for this period.

2012 Key Performance Indicators for emissions.


Greenhouse gas emissions should be continually reduced in order

to prevent further climate change. Obligatory emissions reductions

were laid down in the Kyoto Protocol, which was signed by nearly

200 countries. Using that as a basis, the European Union has set

itself ambitious climate targets: by 2020, greenhouse gas emis-

sions and primary energy consumption should be reduced by 21%

compared to 2005 fi gures. This should be achieved through increased

use of renewable sources of energy and increased energy effi ciency

and at the lowest cost to the economy. Therefore, in 2005, the EU

introduced trading with emission allowances as a market-economy

climate change instrument. It is designed to promote climate-friendly

technologies and processes.

The European Emissions Trading System (ETS) restricts the amount

of permitted emissions by issuing emissions allowances, also known

as “pollution permits.” The certifi cates can be traded on the market

anywhere in Europe. As a result, companies are encouraged to

reduce their greenhouse gas emissions. If, however, taking appro-

priate measures is the more expensive option, a plant operator can

purchase allowances instead. They would purchase certifi cates from

another company that doesn’t need them itself. The other company

receives money from the sale to reduce its own emissions. Emis-

sions are therefore reduced where effi ciency is at its best.

Energy and industrial plants that have a rated thermal input ex-

ceeding 20 MW are included in the emissions trading scheme. In

2012, a good dozen plants in the Wintershall Group fell into this

category: two production platforms in the Dutch North Sea, the

compressor station in the German pipeline network, the natural gas

compressor at the Rehden storage facility and the steam fl ooding

facility at the crude oil plant in Emlichheim. Each plant is dealt with

separately and receives a set number of emissions allowances from

the State. In the past, they were allocated out by and large free of

charge. From 2013 onwards, however, when the third ETS trading

period begins, more and more emissions permits will have to in-

creasingly be purchased at auction on the spot market and futures

market. The revenue generated goes to the Member States and

climate funds. For plant operators, the model means higher costs,

together with a greater incentive to reduce emissions and hence

costs. In 2013, 80% of the certifi cates will still be allocated free of

charge but in 2020 only 30% will be. For 2027, it is envisaged that

all allowances will have to be purchased at auction. At the same

time, there will be fewer and fewer emissions allowances on the

market as the distribution of allowances is set to fall by 1.74% per

annum. It is expected that shortage of certifi cates will mean that

their price will increase. Wintershall has already taken numerous

measures to reduce emissions, for example the refurbishing or ret-

rofi tting of plants or the effi cient use of associated gas.

In the medium term, emissions trading will lead to a decrease in

greenhouse gas emissions through supply and demand. At the same

time, however, the system is making plant operations more expen-

sive and means that complex plant and monitoring procedures are

required. For example, companies must draw up a specifi c plan for

each plant affected describing the methods that it will employ to

monitor emissions. The responsible monitoring authority in Germany

is the German Emissions Trading Authority (DEHSt). Applications for

emissions allowances for each plant must be sent to it and actual

emissions must be reported to it every year.

Everything you need to know:

the A-Z of emissions trading.

Greenhouse gases.

Greenhouse gases are gaseous substances that accumulate in the

atmosphere and prevent the Earth’s heat from escaping. As a result,

they amplify the atmosphere’s natural greenhouse effect which con-

tributes to global warming in the long term. The main greenhouse

gas, produced by mankind, is carbon dioxide (CO2), which occurs

as a result of combustion processes.

Emissions allowances.

The world’s largest emissions trading system is the European Union’s

system, the ETS. The emissions allowances are issued as Europe-

an Union Allowances (EUAs). An allowance permits a company to

emit a tonne of CO2 or a tonne of CO2 equivalent, i.e. the amount

of another substance that has the same greenhouse gas potential

as a tonne of CO2. As well as national certifi cates, which are allocated

to each plant, there are also certifi cates generated from projects.

These are awarded for improvements through individual measures.

Electronic trading.

Emissions allowances are not hard-copy certifi cates. Trading takes

places on a virtual market, over stock exchanges, through brokers

or directly between the parties involved. There are various market-

places for emissions allowances, including the European Climate

Exchange (ECX) in London and the European Energy Exchange (EEX)

in Leipzig. Global trading can be done via the fi nancial markets

operator NYSE Euronext.

Third trading period (2013 – 2020).

The third trading period for the European Emissions Trading System

begins in 2013 and will run for eight years. It will have several new

features. In addition to the auctioning of certifi cates, these include

changes to the assessment bases for certain types of plants: the

number of allocated certifi cates no longer depends on a plant’s

emissions from the previous year but on the most effi cient plants in

its class that serve as a benchmark. An emissions threshold has

also been introduced for the manufacture of certain products. For

example, no more than 1,328 grams of CO2 can be emitted per kilo-

gram of steel. The benchmark for fossil fuels for driving gas turbines

is 56.1 EUAs/TJ and 62.3 EUAs/TJ for steam and heat generation.

Furthermore, emissions of nitrogen monoxide and perfl uorinated

hydrocarbons are now included in the trading. Air traffi c has also

been subject to the ETS since 2012.

Exemptions.

In order to prevent energy-intensive industries from relocating to

third countries (the carbon leakage effect), certain sectors will be

exempt from emissions trading in the third trading period, for example

the cement, paper, wood and glass industries. Wintershall will not

benefi t from these exemptions. Another special case is that of power

production. From 2013 onwards, producers will have to purchase

all certifi cates by auction.

46 | 47 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION I ACTIVITIES

ENVIRONMENTAL PROTECTION WORLDWIDE:

OUR ACTIVITIES IN 2012.

Field test successfully begun.

Together with BASF, Wintershall is devel-

oping an environmentally friendly pro-

cess designed to increase the oil recov-

ery rate of reservoirs. At the center of the

research project is a biopolymer produced

by the fungus Schizophyllan. The gelatin-like

sub stance thickens the water injected into the reservoir to enhance

production. This is because thickened water can displace more oil.

The biopoly mer is also completely biodegradable. An initial fi eld test

began in the Bockstedt oil fi eld in Lower Saxony in 2012. The bio-

polymer is produced in a BASF plant in Ludwigshafen and trans-

ported in special tanks to the crude oil facilities in Barnstorf. A water/

polymer mixture is then fi nally introduced into the reservoir through

an injection well. The two-year long test should demonstrate the

properties of the natural thickening agent behaves in above-surface

facilities and underground.

Mittelplate.

Wintershall and RWE Dea have been producing crude oil at the

Mittelplate platform for 25 years without any accidents. Stringent

safety and environmental standards take the particular production

area (the ecologically sensitive Wadden Sea) into account. As a

result, the production platform is sealed by using a second barrier

off using steel piling thus ensuring that no oil or dirt can escape into

the North Sea. Attention is also paid to consistently protecting the

water and mud fl ats, even on the wells with the use of automatic

quick-close valves at the wells. Independent scientifi c studies have

always confi rmed ecological compatibility. As a result, we can ensure

that production will not affect organisms living in the mud fl ats and

that there will be no harmful consequences for fi sh or birds. It is

assumed that there are further oil reserves within the range of the

production platform which Wintershall and RWE Dea want to explore.

New deposits could be produced via the existing platform and so

there are no plans to install additional facilities in the Wadden Sea.

Germany.Straight from nature:

the Schizophyllum commune fungus

48 | 49 HSE ANNUAL REPORT 2012 ENVIRONMENTAL PROTECTION I ACTIVITIES

WINGAS.

Natural gas has an important role to play in the change of energy

policies in Germany (known as the “energy transition”) and in inter-

national climate change efforts as it is the cleanest burning fossil fuel.

It can be stored and used in various ways and is therefore the perfect

partner to wind and solar energy, the availability of which is subject

to heavy fl uctuations. In view of this, WINGAS is keen to tap into the

potential of natural gas, which predominantly lies in its effi ciency in the

heat market and the generation of electricity. Together with selected

public utility companies, WINGAS is testing innovative combined

micro heat and power generation plants, which produce power and

heat locally. The company has started a promotional program for

public utility companies in order to promote the spread of the plants.

Modern natural gas heating systems are extremely effi cient and can

represent an economical alternative to thermal insulation, even in

old buildings, especially given that many public and private budgets

cannot accommodate energy-related renovation work.

Contribution to the “energy transition”.

Environmental Day at WINGAS.

“Mission for the future” is the name of WINGAS’s commitment to

the environment and society. As part of a company-wide Environ-

mental Day with speeches and interactive activities, Gerhard König,

WINGAS’s Chairman, presented a 10-point program on the com-

pany’s activities around climate change and social commitment. On

account of its good CO2 values, natural gas is an environmentally

friendly source of energy and the ideal precursor to the age of renew-

able energy sources.

Natural gas-powered vehicles.

WINGAS is involved in the Initiative for Natural-Gas-Based Mobility

together with automotive manufacturers, other energy suppliers and

dena (the German Energy Agency). The initiative aims to raise the

share of natural gas and bio-methane on the fuel market and thus

decrease CO2 emissions from road traffi c. The company is also

pursuing this climate change target in house: since 2012 employees

have been able to use natural gas-powered cars for corporate travel.

Shale gas potential under the spotlight.

Crude oil and natural gas from shale reservoirs represent important

sources of energy all around the world. However, reliable data on

actual reserves is hard to acquire. Experts even believe that there

are some regions in Germany, for example North Rhine-Westphalia,

that may have natural shale gas deposits. In order to verify these

assumptions, geological tests need to be carried out on the clay

rock and shale. Only then will it be possible to determine with any

certainty whether it will be ecologically and economically viable to

exploit the suspected shale gas deposits. Wintershall’s activities in

the “Rhineland” and “Ruhr” concessions are limited to geological

exploratory investigations to assess the resource potential of pos-

sible shale gas reservoirs. Deep drilling and fracking work were not

and still are not planned in this phase.

Together with BASF, the company has been searching for solutions

since 2012 to make fracking fl uids even more environmentally friend-

ly. Experts are working closely with experienced manufacturing and

service companies. The proportion of chemical substances in the

fracking fl uid is currently only around 1% and many of the additives

are present in everyday products.

Argentina set to extract shale gas.

Argentina is keen to develop the use of unconventional gas deposits.

According to estimates, the country has the world’s third largest

shale gas deposits but the company will rely on experienced part-

ners to carry out the exploitation work since shale gas production

has special technical requirements and safety and environment con-

cepts. Wintershall is one of the investors that would like to explore

and produce shale gas in Argentina. In 2012 the company obtained

two exploration licenses for Mendoza Province. The purpose of the

exploration work is to gain a better understanding of the character-

istics of the extremely impervious reservoir rock and look into poten-

tial ways of extracting the shale gas economically and safely. The fi nd-

ings could then be used at a later date for projects in other countries.

Wintershall is also working on developing other conventional and

unconventional reservoirs in Argentina. Together with TOTAL, the

company is producing tight gas in the Vaca Muerta formation in the

Neuquén Basin. Work is also being carried out in the same fi eld to

look for shale gas. Wintershall is also involved in this work in the

Bandurria und San Roque blocks.

Unconventional hydrocarbon deposits.

50 | 51 HSE ANNUAL REPORT 2012 PRODUCTION TECHNIQUES

Disposing of the fracking fl uid.

Most of the fracking fl uid is pumped back up the surface once the hydraulic

fracturing has been completed, where it is collected and treated in accord-

ance with the regulations. After the fl uid has been separated into gaseous,

liquid and solid materials, certifi ed specialist companies take care of the recy-

cling and disposal.

Composition of the fracking fl uid.

The mixture of fl uids used in hydraulic fracturig consists almost entirely of

water and sand or ceramic to keep the channels open for the gas to fl ow

through. The additives account for a maximum of two percent: these are

chemical additives such as salt, preservatives, friction-reducing substances

or gelling agents – substances that are also used in many every-day products.

Deposits in the world.

Around the world there is considerably more unconventional than conventional natural

gas. As well as shale gas, this includes coal bed gas and gas hydrates. However, only

3.3 trillion cubic meters are commercially and technically recoverable.

HYDRAULIC FRACTURING.

Safely increasing potential.

Conventional and unconventional natural gas deposits from very

tight reservoirs could secure our energy supply for many decades.

Exploiting them, however, requires increasingly huge technical out-

lay – and tight gas and shale gas cannot be produced without

hydraulic fracturing.

Media discussions on production from reservoirs that are diffi cult to

access often mention “fracking” – short for “hydraulic fracturing.”

This technique is basically nothing new – over one million wells

worldwide have been completed using this method in the last sixty

years. The fracking method is not just used to produce oil and gas,

but also for water wells and in geothermics. For 40 years now the

technique has also been used in other countries with very high en-

vironmental standards, such as Norway.

Wintershall has been using fracking technology in Germany for

many years, for example in the production of tight gas, without any

negative environmental impacts. Wintershall voluntarily undertakes

not to drill or frack in drinking water protection areas.

How does the technique work exactly?

A mixture of water and sand is compressed into the well and creates tiny

cracks at precisely defi ned points in the rock through which the gas can fl ow

to the borehole. The sand prevents the fl ow paths from closing up. The fl uid

contains a very small proportion of chemical substances which stabilize the

cracks and counteract any bacterial. A infestation complex safety system

prevents any liquid from escaping. Contamination of drinking water is impos-

sible since tight gas or shale layers are considerably below drinking water

layers. The multi-layered steel casing of the borehole is fi lled with special

cement and is around 35 cm thick in the area of the usable groundwater. The

drilling site above ground is also sealed so that no fl uid from the surface can

penetrate the ground.

ance

liquid

cling a

Technology.

The shale formations are usually less than 200 meters

thick. The reservoirs are therefore developed using hori-

zontal wells. As with all wells, a perforating machine in

the gas-bearing layers generates small holes in the steel

pipes, through which the fracking fl uid is injected and then

the gas extracted. Compared to tight gas, however, more

fracs and a greater volume of fracking fl uids are necessary

to tap into the deposit.

Technology.

The tight gas is located in the pores of

the tight sandstone. In contrast to nor-

mal conventional reservoirs, the rock has

smaller cavities that are barely connect-

ed to each other – so the gas cannot

fl ow freely to the well. Hydraulic fractur-

ing opens small (about 5 mm) channels

for the gas to fl ow through, thereby mak-

ing production possible at all.

e

r

General.

Tight gas has been pro-

duced in Germany for dec-

ades: Wintershall for exam-

ple, has been producing the

raw material from this kind

of formation for more than

30 years in Lower Saxony.

To do so it also uses hydraulic

fracturing – without any neg-

ative impact on the environ-

ment or drinking water.

General.

Theoretically, Germany could

cover its gas consumption re-

quirements for 13 years with

shale gas deposits. However, at

the moment the reservoirs are

merely being investigated geo-

logically. In the USA, on the other

hand, shale gas has already led to

an energy revolution in the last ten

years.

e Tight gas production.

Rock.

The tight gas deposits in Lower

Saxony lie between 4,000 and

5,000 meters under the ground.

They are accessed with vertical

wells because the gas-bearing rock

layers are relatively strong (thicker

than 500 meters).

Rock.

The shale gas is trapped in the place

where it was formed, in the bedrock. It

is mostly made of claystone (shale) con-

taining many organic particles – the gas

was once formed from them. It sits in tiny

pores and crevices and also on the sur-

face of the rock.

r Shale gas

production.

52 | 53 HSE ANNUAL REPORT 2012 HEALTH PROTECTION

HEALTH PROTECTION.PREVENTION AND HEALTH PROMOTION.

The aim of occupational health protection activities

at Wintershall is to prevent work-related illnesses or

impairment to employees’ health, as well as maintain

a high level of overall health within the workforce.

Wintershall’s focus is on preventative health measures,

health promotion and ensuring effective medical care

in the event of emergencies.

FIT +HEALTHY.

54 | 55 HSE ANNUAL REPORT 2012 HEALTH PROTECTION

As in previous years, once again no employees at Wintershall suf-

fered an occupational illness in 2012. Together with HSE experts,

company physicians at the individual locations and Business Units

analyze working areas in order to minimize the risks to employees’

health in their activities. These are complemented by workplace

walkabouts conducted by managers and HSE experts according to

the requirements of the HSE Management System. In 2012, 1,184

occupational health checks relating to prevention or early screening

for work-related illnesses and to prepare staff for work-related stays

abroad were conducted worldwide.

A trained fi rst aider can save lives. To ensure that fi rst aid can be

administered in the case of a medical emergency, there are 545 fi rst

aiders and paramedics at the Wintershall Group’s locations who

hold a nationally recognized certifi cate in fi rst aid. Wintershall actively

supports its employees who wish to take part in fi rst-aid training

sessions. Donating blood can also save lives. Blood donation oppor-

tunities are organized regularly at the headquarters in Kassel.

Health care in remote regions.

The issue of health protection in exploration and production in

remote regions and under extreme climatic conditions requires

special attention. There often is a lack of medical care or the local

medical infrastructure does not meet international standards. In such

cases, special preventive measures are designed very carefully to

avoid potential health risks to employees and contractors as far as

possible. These measures are complemented by preventative and

follow-up medical check-ups.

As an international company, Wintershall also endeavors to fully pre-

pare its employees for journeys and assignments abroad and to avoid

unnecessary risks. Travel advice, vaccination recommendations and

information on countries where Wintershall operates are regularly

compiled and updated. A special HSE checklist was developed to

prepare employees for trips abroad. The package is rounded off

with risk assessments, special procedural instructions and emer-

gency cards for each location.

0

occupational illnesses

1,184

occupational

health checks

545trained fi rst aiders

and paramedics available

for call-out

2012 Key Performance Indicators for occupational health.

As part of its health campaigns, Wintershall offers its employees the

opportunity to learn about different health relevant topics and take

action themselves. Focus is on health promotion and the prevention

of illnesses.

In 2012, the topic under the spotlight was hearing protection. The

campaign didn’t just deal with exposure to noise at the workplace

as there are stringent occupational health and safety regulations in

force for that. Instead, greater attention was paid to the often under-

estimated danger of exposure to noise outside of work. Loud music,

noise in stadiums or New Year’s Eve work can seriously damage

hearing. During information events, employees learned how noise

affects the ear and how ear protectors and following some simple

do’s and don’ts can help to prevent complications such as hearing

loss. Using checklists, employees were also able to assess their

own risk and take part in hearing tests.

Young people are often particularly affected by hearing damage, which

is why part of the health campaign was specifi cally tailored towards

the company’s trainees for the fi rst time. In addition, a workshop spe-

cifi cally aimed at the interests and habits of younger workers was

devised and run by HSE department trainees. Amongst other things,

a smartphone app for measuring ambient noise was presented.

Hearing protection campaign.

56 | 57 HSE ANNUAL REPORT 2012 CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY.

At Wintershall we see cultural differences as something enriching.

We have seen that our shared values outweigh our differences.

This is why Wintershall’s international operations not only produce

crude oil and natural gas, but also closer contacts between people.

Sponsoring cultural and social projects is not a luxury for Wintershall,

but an expression of its social commitment and active steps to

enhance quality of life.

As a subsidiary of BASF, the Wintershall Group is committed to its

responsibility to observe and promote human rights. We respect the

internationally proclaimed human rights and effective law in our busi-

ness activities.

As a company in the BASF Group, a founding member of the UN

Global Compact, we strive to help raise awareness and protect human

rights in our sphere of infl uence. For this reason we also support our

suppliers and business partners in acting according to internationally

recognized standards.

We aim to be an attractive employer, reliable partner and good neigh-

bor. That is why we take on corporate social responsibility and actively

support diverse projects around the world in the host communities

where our sites are located, focusing on culture, education, science

and health. With our social commitment we want to help to contribute

to making positive developments in society and thus help to promote

human rights.

Human rights.


Our employees are our capital and our most important resource.

Each and every employee contributes to the success and develop-

ment of the company. Our principles include creating the best pos-

sible working conditions for our staff as well as opportunities for

personal development.

The Wintershall Group offers extensive training and further training

programs alongside “on-the-job training” for qualifi ed university

graduates and a Work & Life Service to help employees balance

their professional and family lives. We play a pioneering role in this

fi eld. The Work & Life Service is a place employees can go to for

support in reconciling the needs of the job and their personal lives.

Flexible working hours, company sports and health measures,

household-related services, parental leave, ensuring an easy return

to work, as well as child care and school support are the main ways

we support our staff.

Our KIWI children’s daycare facility, which was set up in Kassel in

2001, and our WIKI children’s daycare facility, which was set up in

2012, are an important part of our Work & Life Service because

Wintershall has grown continuously over the years and so too has

the demand for childcare facilities. This daycare facility offers our

German and international staff a place where their children, aged

between 6 months and 12 years, will be looked after by professional

and dedicated staff. There are over 140 places available. Thanks to

fl exible daycare offers, shared places, homework supervision and a

play area suitable for all age groups, over the years KIWI has become

like a second home.

Wintershall does everything it can to ensure the best possible work-

ing atmosphere at all of its various locations. By supporting our staff

with various needs, Wintershall offers all staff a service-oriented

working environment. For this reason, since 2003 it has been award-

ed the certifi cate “audit berufundfamilie” from the non-profi t HERTIE

foundation. It goes without saying that Wintershall also looks after

its staff in its international locations, and respects cultural diversity.

Employees and their families.

Large-scale construction projects not only need to be approved by

the authorities, they also need to be accepted by the general public.

This also applies to investments in energy infrastructure. The public

expects to receive extensive information as there is now height-

ened sensitivity regarding projects that interfere with nature, the

landscape or settlement areas. Most people want to see an envi-

ronmentally friendly energy supply. However, the construction work

needed for that is often rejected. Investors who fail to involve citi-

zens can expect to be met with resistance. Only when people are

convinced of a project’s value on site and feel that their fears and

concerns are being taken seriously can dialogue really work. There-

fore, Wintershall always attempts to engage in dialogue with land

owners, residents and other stakeholders early on in planned large-

scale construction projects, such as the construction of natural gas

pipelines or drilling projects. The aim is to resolve any ambiguities.

Confl icts, for example with agricultural land users, should be avoid-

ed or solved as amicably as possible. Our model for how to com-

municate with our neighbors has proven itself to be successful, for

example in the laying of the Baltic Sea Pipeline Link (OPAL). Infor-

mation events in the affected areas, newsletters and a telephone

hotline for citizens to ring ensured a high degree of transparency.

The cooperation between the company, environmental organiza-

tions and scientists also helped to create a sense of trust amongst

the population.

But it’s not just construction projects that citizens want to be kept

informed about – it’s also unfamiliar technology. Therefore, Winters-

hall provides regular tours around its drilling site at the Düste explo-

ration well. The reservoir in Lower Saxony contains tight gas which

needs to be produced using fracking techniques. Fracking has been

used for many years to produce tight gas but is currently being

criticized in connection with the extraction of shale gas. The drilling

site tours are designed to provide factual information and help to

allay people’s fears.

Transparency and dialogue.


During the political unrest in Libya, many people there were severely

injured. In 2012, Wintershall offered support for the treatment of vic-

tims in Germany, including two children.

As part of emergency aid for Libya, Wintershall facilitated much-

needed medical care for seriously injured victims in Germany. The

company enabled patients to be treated who could not have been

adequately treated in their homeland. They were fl own to Germany

for surgery and rehabilitation. The charitable organization of medical

practitioners, Interplast e.V. (Eschweiler section), was chosen as a

partner for selecting, transporting and treating the seriously injured

casualties who were treated at the St. Antonius Hospital in Esch-

weiler. The doctors in Eschweiler have many years of experience in

treating casualties of war and have worked with Interplast on many

occasions. Two children who were seriously wounded when a mine

exploded were treated in Germany.

Mine clearance.

In order to prevent as many mine-related accidents in the future as

possible, Wintershall is supporting the Saint Barbara Foundation in

the clearance of mines in Libya. The organization, which is based in

Munster in Lower Saxony, has set itself the task of ridding former

war-torn regions of mines and providing humanitarian aid for people

on site. Wintershall is providing the vehicle required for transporting

the defused munitions. In 2012, all mines were removed from Mitiga

airport in Tripoli by work fi nanced by the Ministry of Foreign Affairs.

The Saint Barbara Foundation wants to continue the good work

being done in Libya. The amount of work is daunting: it is estimated

that there are more than 100,000 anti-personnel mines left over

from the civil war in 2011. There are also another 2.5 million anti-

tank mines from World War II.

Aid program for Libya continues.

In 2012, with the help of Wintershall employees, in the Libyan town

of Yefren around 130 km south-west of Tripoli, a new day-care nurs-

ery was opened. The initiators were shocked by the huge demand

for it: instead of the announced 120 places for girls and boys be-

tween the ages of three and seven, the number of applications

reached 220. Colleagues from Wintershall Libya worked hard to

contribute to turning this project into a reality. The Yefren town ad-

ministration provided a building and the Salsabil Foundation reno-

vated the house for the children and outside areas and furnished it.

Nursery opened.

Wintershall continues to live up to its responsibility in Libya and assist

the country in its reconstruction. A hospital is to be opened in the

Libyan Desert in the Jakhira oasis, which has around 5,000 inhabit-

ants, by the end of 2013. Wintershall will provide the staff and

equipment for the hospital and run it for up to fi ve years with the

support of an experienced healthcare provider. After that, the goal is

for the clinic is to be self-supporting. Its focus will be on emergency

treatment for people in Jakhira.

Setup medical infrastructure.

62 | 63 HSE ANNUAL REPORT 2012 OUTLOOK

As part of the asset swap with the energy company Statoil, Winters-

hall aims to assume operation of the Brage platform. That would be

the fi rst time the company is the operator of a large production

platform on the Norwegian Continental Shelf. Approval by the local

authorities is required fi rst.

Equity investments, the platform and about 150 employees who have

been with Statoil up to now are to be integrated in the company.

The project management team set up for this task also includes

numerous HSE experts. They will review the existing Brage health,

safety and environmental systems and incorporate this in the Win-

tershall Norge Management System. Changes are to be made only

where a genuine improvement can be achieved – after all, oil and

gas have been produced safely on the Brage platform for the past

20 years. Wintershall intends to leverage the technical and organi-

zational experience of the existing operator in order to rule out any

future risks to the shelf sea and the continental shelf.

Offshore production in Norway is subject to strict safety and envi-

ronmental protection laws. Wintershall aims be able to operate the

Brage platform by the end of 2013 at the latest. When applying for

a production permit (application for concent), the company has to

prove they are a prudent operator to the authority, by among other

demonstrate they have the necessary capacity and competence,

suffi cient management systems, HSE system and expertise.

Integration of new assets in Norway.

OUTLOOK.WHAT THE FUTURE HOLDS.

Increasing safety with integrated intervention systems.

Wintershall intends to bolster its commitment to preventing oil spills

and creating better concepts for tackling them. As well as support-

ing the development and stationing of a capping device for bore-

holes in the North Sea, Wintershall is considering involvement in

projects in other regions. As a result, the company is working very

closely with specialist companies in order to pool skills and techni-

cal know-how. The main focus is on access to integrated interven-

tion systems and modern protection devices such as capping de-

vices for damaged boreholes. All around the world, around a dozen

capping devices, funded by individual companies or consortia, are

being planned or have already been stationed.

Wintershall Libya sets its sights on ISO 14001 certifi cation.

Following Wintershall Noordzee’s example in the Netherlands, Win-

tershall Libya would also like to implement a special environmental

management system in accordance with the internationally recog-

nized standard ISO 14001 and have it certifi ed. Certifi cations are car-

ried out and regularly reviewed by independent auditors. Require-

ments for certifi cation include a defi ned operational environmental

policy, environmental targets and an environmental program as well

as a corresponding management system to help with achieving the

targets. Wintershall would be the fi rst E&P company in the country

to obtain ISO 14001 certifi cation. Its standards and initiatives mean

that the company is a pioneer in terms of environmentally friendly

approaches to the production of energy in Libya.

Maintenance of all facilities in Libya.

In order to guarantee the integrity of its production plants all around

the world, Wintershall regularly checks their condition. In 2013, it

plans to inspect all of its facilities in the Libyan Desert. During the

inspections, the entire plant will be shut down. Over a maximum

fi ve-week period, all plant parts will be gradually disconnected,

maintained and, if necessary, repaired or furbished. Detailed sched-

uling and optimum cooperation between all those involved will be

essential in order to minimize risks and production losses. All work-

ers including contractors will be included in the process which comes

with its particular HSE challenges. Preparations have commenced

around a year prior to the scheduled date.

International Association of Oil & Gas Producers (OGP) meets in Germany.

Representatives of the International Association of Oil & Gas Pro-

ducers (OGP) will meet in Germany in November. Wintershall is or-

ganizing the annual event for members in Berlin following a meeting

of health and safety experts from member companies held in 2012

in Celle, the home of German crude oil and natural gas production.

Representatives from international companies met there to ex-

change views and ideas. In Berlin, the main focus will be on safety

and standards.

64 | 65 HSE ANNUAL REPORT 2012 KEY PERFORMANCE INDICATORS 2012

AT A GLANCE: KEY PERFORMANCE INDICATORS 2012.

Unit 2012 2011

WINTERSHALL PERFORMANCE

Sales to third parties mio. € 16,700 12,051

· Exploration & Production mio. € 5,330 3,182

· Natural Gas Trading mio. € 11,370 8,869

Profi t from operating companies (EBIT) mio. € 3,904 2,111

· Exploration & Production mio. € 3,422 1,686

· Natural Gas Trading mio. € 482 425

OCCUPATIONAL SAFETY

Number of employees* 2,514 2,281

Own employees

· Fatalities (FAT) 0 0

· Injury with > 1 day lost time (LTI) 1 0

· Lost time injury frequency rate per one million man hours (LTIF) 0.20 0

Contractors

· Fatalities (FAT) 0 0

· Injury with > 1 day lost time (LTI) 10 5

· Lost time injury frequency rate per one million man hours (LTIF) 1.48 0.75

LTIF total (own employees and contractos) 0.93 0.46

OCCUPATIONAL HEALTH

Occupational diseases own employees 0 0

First aiders Wintershall/WINGAS 545 582

Occupational medical check ups 1,184 707

ENVIRONMENTAL PROTECTION

Energy

· Energy consumption MWhel 759,390 878,831

· Steam use t 469,486 384,082

· Fuel use for own energy production mio. MWh 2.05 1.4

Greenhouse gas emissions

· CO2 mio. t 1.35 1.34

· CH4 t 3,164 4,057

Emission inorganic substances t 3,441 2,808

Emission trading Europe

· Received emission allowances EUA/a 808,051 791,067

· Emissions from facilities regulated under emission trading scheme t 492,934 458,035

Waste t 160,837 80,436

Water use (total) mio m3 15.5 10.7

· Production water mio m3 13.2 9.5

* Excluding temporary employees; part-time employees pro rata

66 | 67 HSE ANNUAL REPORT 2012 CONTACT PERSONS

CONTACT PERSONS.

Guido Schnieders

Corporate HSE Manager

Malalay Osmani

HSE Engineer

Marco Lukassen

HSE Engineer

Georgina Wien

HSE Manager

New Ventures

Nadja Brauhardt

HSE Communication

& Sustainability

Klaus Jantos

Senior Environmental

Advisor

Locations worldwide.

Abu Dhabi (WIME)

Louis Susanna

HSE Manager

Argentina (WIAR)

Jonathan Gandolfo

HSE Manager

Germany (WIDE)

Dr. Michael Bätcher

HSE Manager

Libya (WILI)

Mustafa Abunagasa

HSE Manager

Netherlands (WINZ)

Onno Spinder

HSE & Permitting Manager

Norway (WINO)

Janne Lea

HSE Manager

Russia (WIRF)

Evgenia Shvychkova

Junior HSE Specialist

Qatar (WIQA)

Axel Barenschee

HSE Manager

+49 561 301–1757

[email protected]

Corporate HSE Kassel.

Imprint.

Responsible for the content

Wintershall Holding GmbH

Friedrich-Ebert-Str. 160

34119 Kassel

Conception and editorial work

Nadja Brauhardt

Design

atelier 41, Berlin

Information graphics

KircherBurkhardt GmbH

Paints Multimedia GmbH

Postcards

Red Rabbit Werbeagentur GmbH

Print

Ruksaldruck, Berlin

Wintershall Holding GmbHFriedrich-Ebert-Straße 16034119 Kassel, GermanyTel.: +49 561 301-1757Fax: +49 561 301-1702

[email protected] www.wintershall.com

Documents

Wintershall HSE Annual Report 2012