PT4 Pump Station, Turkey

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HEALTH AND SAFETY 9

PT4 Pump Station, Turkey PSG2 employees, Georgia KP 377, Azerbaijan

9 9 HEALTH AND SAFETY All efforts continued this quarter to observe the stringent health and safety targets set by the Project for 2005. There were 7 Day Away From Work Cases (DAFWC), bringing the DAFWC frequency (DAFWCf) for the Project to date to 0.10 and for the year to date, to 0.13. More details on these DAFWCs and of general health and safety performance this quarter are given below. 9.1 PERFORMANCE AND ACHIEVEMENTS BTC s 2005 Health and Safety performance is 4 times better on DAFWCf when compared to the industry average (see Table 9.1). Overall, the Project to date DAFWCf of 0.10 remains 5.6 times better than the industry average. However, the current DAFWCf for 2005 is 0.13, which is above the stringent target set by Project. This is being addressed. Table 9.1: BTC versus International Safety Performance BTC Statistics for 2004 BTC Statistics for 2005 (to end of Q2) IPLOCA Statistics for 2003 Contractors submitting data 11 10 56 Total Man-hours 63,784,499 15,755,919 612,169,147 Total Days Away From Work Cases (DAFWC) Days Away From Work Cases Frequency (DAWFCf) Rate 30 10 1,700 0.10 0.13 0.56 Notes: IPLOCA International Pipeline and Offshore Constructors Association 200,000 man hours is used to calculate DAFWC frequency The targets for input measures such as Advanced Safety Audits, STOP Observations and Safety Training Hour frequencies were increased by up to 50% in 2005 (from the targets set for 2004). Performance against the targets is measured and monitored on a monthly basis (see Table 9.2). The Project Team s aim is to increase the number of Advanced Safety Audits, STOP Observations and Safety Training Hours, as these are positive contributors and tools to improving safety performance. The total Safety Training Hours frequency continues to exceed the target, whilst ASA and STOP input frequencies, are generally slightly below target. This is being addressed. Table 9.2: BTC Health and Safety Performance against 2005 Targets (at the end of June 2005) Performance Indicator 2005 Target 2005 Performance (to 30 June 2005) Fatality 0 0 Days Away From Work Cases Frequency (DAFWCf) 0.10 0.13 Recordable Injury Frequency 0.46 0.51 Total Vehicle Accident Rate (TVAR) 1.91 1.48 Advanced Safety Audit (ASA) Frequency 350 297 STOP Observation Frequency 2,100 1,849 Safety Training Hours Frequency 3,500 4,347 9-1

The Recordable Injuries and Illnesses Frequency (RIIF) rate has fallen month on month for the past 14 months (see Figure 9.1). Vehicle accidents, although still a major concern on the Project, have continued to fall steadily throughout the quarter (see Figure 9.2), and performance remains within target. Information on activities carried out this quarter to continue reducing the Total Vehicle Accident Rate (TVAR) is given in Section 9.1.3. Figure 9.1: Recordable Injuries and Illnesses Frequency Rates (RIIF) 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 BTC 12 Month Rolling Total RIIf 0.00 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Figure 9.2: Total Vehicle Accident Rate (TVAR) 3.50 6 Month Rolling TVAR 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June 9.1.1 GENERAL Listed below are the key achievements and milestones in 2005-Q2 for the Project as a whole: BP Energy Isolation Safety Immersion Training for all Project staff commenced and is nearing completion; A slide pack was issued to In-Country teams to promote awareness of overhead power lines; A wordless safety handbook was issued to address the language and communication issue within the workforce; and Independent food safety audit and inspections were undertaken in Azerbaijan and Georgia. 9-2

9.1.2 AZERBAIJAN In Azerbaijan 10 million man-hours were worked, 40 million km driven and 3 million meals served without a DAFWC. 9.1.3 GEORGIA Achievements during the quarter included: A survey of all overhead power lines to measure heights and voltages; Continuation of the Zero Tolerance Campaign for driving infringements; and Monitoring and inspection of light and heavy vehicles continues, to check vehicle mechanical condition and safety equipment availability. 9.1.4 TURKEY Achievements during the quarter included: At Ceyhan Marine Terminal 11 million man-hours have been worked without a DAFWC and 17 million km driven without a Road Traffic Accident; 6 million man-hours were worked at Turkish Pump Stations without a DAFWC; A Permit to Work review was conducted at Ceyhan Marine Terminal; and An Accident Black Spot survey has been completed with the main objective of increasing awareness of drivers, especially with regard to driving at a speed that is commensurate with road and weather conditions. The report will be shared with the Turkish Highway Authority. 9.2 HEALTH AND SAFETY INCIDENTS BTC reviews the Project s performance on an ongoing basis and produces a monthly report for BTC management and Partners. Table 9.3 provides an overview of the numbers of incidents that have occurred. All incidents are fully investigated to ensure that actions are put in place to prevent a recurrence and that lessons learned are shared. There were no Major Incidents this quarter. Details of Significant Incidents are provided in Section 9.2.1. Table 9.3: Health and Safety Incidents Project Indicators Jan Mar 2005 April June 2005 Man-hours 8,787,354 6,968,565 Kilometres Driven 19,311,979 17,280,951 Road Traffic Accidents 32 22 Fatalities 0 0 DAFWC 3 7 Medical Treatment and Restricted Work 18 22 Recordable Illnesses 0 0 Total Recordable Injuries and Illnesses 21 28 First Aid Cases 58 41 Near Misses 44 25 9-3

9.2.1 SIGNIFICANT INCIDENTS IN 2005-Q2 There were 7 DAFWCs this quarter, all of which occurred in Turkey. Details are as follows: On 5 th April a worker at Lot C camp was struck in his right eye when he pulled on some redundant cable laying on the ground. He required hospitalisation. The investigation showed he was not authorised to undertake the work and was not wearing safety glasses; On 22 nd April a Project sub-contractor vehicle collided with a third party minibus. The collision resulted in the passenger of the vehicle being injured and hospitalised; On 23 rd April a worker in Lot B was struck on the arm by an excavator bucket while trying to push a hydrotest pig forward into the test head. The injured party was treated for a broken arm between the shoulder and elbow; On 29 th May a Botaş engineer was carrying out an inspection of cables in a cable trench at PT1. Whilst carrying out the inspection he slipped, fell on his right leg and broke his ankle; On 6 th June in Lot A, a worker was injured whilst derigging a sideboom. The boom crushed the feet of one of the dismantling crew. The injured party was dispatched to Kars hospital by ambulance for treatment; On 7 th June in Lot B a worker slipped on stony ground and struck the inlet of the pipe cutting his left leg between the ankle and knee. The injury was deep and needed medical attention; and On 22 nd June a scaffolder at PT1 was struck in the face by an I beam which fell when the tack welds broke as he pulled against it while adjusting scaffolding. The injured party required hospitalisation and surgery on his face. 9.2.2 OTHER INCIDENTS IN 2005-Q2 In addition to the Significant Incidents detailed above, 2 people received injuries that resulted in restricted work and 20 others received medical treatment for injuries sustained. A total of 41 people required first aid treatment as a result of minor injuries. The main issues were: Hand and leg injuries; and Slips, trips and falls. There were a total of 22 road vehicle incidents against 17,280,951 kilometers driven. This is a reduction of 10 from 2005-Q1 against only a small drop in the kilometers driven. The use of seatbelts, head restraints and rollover protection combined with an extensive driver-training programme is considered to have had positive impact on reducing the number of road traffic accidents, and their seriousness when they do occur. 9-4