Published by HSE Division 2012©
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Abu Dhabi Oil Company Ltd. (Japan)
P.O. Box 630, Abu Dhabi, United Arab Emirates
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Paper

Table of Contents
Sustainability Defined6

Our Employees

24

Message from the General Manager

8

Our Communities

29

Our Business Goals and Achievements

10

Our Environment Initiatives and Achievements

33

Introduction – Our Operations

13

Our Health and Safety Values

43

Our Projects

15

ADOC’s HSE Management System (HSEMS)

45

Our Timeline of Emergence

17

Case Studies

48

Our Governance, Commitments and Engagements

21

Our Awards and Achievements

51

Our Business Strategy

23

Acronyms and Abbreviations, GRI Index Checklist

53

Annual Sustainability Report 2011

Sustainability Definednecessary environmental management procedures,
which is currently being implemented. In addition, we
have been highly involved with environmental protection
and conservation activities.

‘Capacity to Endure’

Economic: As a company, we are continuing to grow

The United States Environmental Protection Agency(USEPA) states that sustainability is based on a simple
principle: ‘Everything that we need for our survival
and well-being depends, either directly or indirectly,
on our natural environment. Sustainability createsand maintains the conditions under which human andnature can exist in productive harmony. This harmony
permits the fulfilment of the social, economic andother requirements of present and future generations.’
Sustainability ensures that we have and will continue
to have the water, materials and resources to protect
human health and our environment.

Sustainability, as pertaining to our business, involves
maintaining a certain status or process in existing
systems. Through our operations and activities, we aim
at maintaining a good sustainable status with a minimal
impact on the environment, economy and society. We
believe that in order to maintain a good reputation andstatus in the current market environment, we need toachieve strong links and equilibrium between the threemain pillars of sustainability which are: Environment,
Economy and Society, as portrayed in the following
diagramEnvironment

Social-Environment• Resources used
• Management• Pollution Prevention• Environmental justiceEnvironment - Economic• Energy efficiency•	Incentives for use of
Natural Resources

Sustainability

Social••••Economic

Standard of living
Education
Community
Equal Opportunity• Profit• Cost saving•	Economic
growtheconomically. We work toward meeting our financial
targets and ADNOC’s expectations. Financial studies
are continuously carried out as part of projects andassist in identifying areas for cost saving and reasonable
spending.

Social: Being aware of the benefits of investing in thesocial life of our staff and their families, community-based
activities and campaigns are organized regularly.

Overlap Environment – Economic: The
overlap of the Environment and Economy (Pillars)
results in a number of sub-pillars of the sustainability
concept. Energy efficiency is one of those sub-pillars.
The implementation of energy efficiency concepts helps
us to identify ways to reduce excessive consumption of
resources. This eventually leads to cost reduction andsustainable development in our company.
Overlap Economic – Social: We conduct ourbusiness based on accepted good business practices,
ethics, and integrity. Additionally, we implement our own
business ethics to the highest standards. Moreover, we
ensure that all employees and workers have equal rights;
are provided with health insurance and that all otherrights stipulated by the UAE Labour Law are upheld.

Overlap Social – Environment: In the UAE,
environmental and social matters are managed andcontrolled by the government. Therefore, we ensure fullcompliance with all applicable local and internationalguidelines.

For us, it is critical to develop and implement
sustainability at a corporate level and theSustainability Report is proof of our commitment
towards
Sustainability.
We
definecorporate
sustainability as the business approach that creates
long-term consumer and employee value by not only
creating a “green” strategy aimed towards the naturalenvironment, but also taking into consideration every
dimension of how a business operates in the social,
cultural, and economic framework. It also refers toformulating strategies to build a company that fosters
longevity through transparency and proper employee
development.

The pillars of sustainability (Environment, Socialand Economic) tend to overlap in many instances. At
ADOC all pillars of sustainability are fundamental

Economic-Social• Business Ethics• Worker Rights

The pillars of sustainability (Environment, Social and Economic) tend to overlap in many instances. At ADOC all
pillars of sustainability are fundamental.

Environment:

We are highly committed toprotecting the environment with pollution prevention as
our primary concern, such that necessary measures
are being implemented on a project-by-project basis.
Health, Safety and Environment Impact Assessment(HSEIA) studies are being developed and prepared6

for each and every project. These studies promote
environmental protection and raise awareness ofcertain environmental issues. Another important aspect
is environmental management; we have developed
our own entity-specific Environment, Health and
Safety Management System (HSEMS), stipulating all7

Annual Sustainability Report 2011

Message from theGeneral Manager‘Sustainability is Fundamental to our
Future Vision’
It gives me great pleasure to present to you our first“Annual Sustainability Report – 2011”. The Report content
has been defined based on Abu Dhabi National Oil
Company, ADNOC, Code of Practice V1-07 (Version 6)
and is in accordance with the internationally recognized
Global Reporting Initiative Guidelines. For the year 2011,
we have self-declared a GRI Application Level <B>. The‘Annual Sustainability Report’ will be issued on a yearlybasis and will replace the previously issued ‘Annual HSE
Reports’.
In early 2012, we proceeded with preparing our first
Annual Sustainability Report as it is one of our core targets
and objectives for the year. This Report is the outcomeof a multi-year effort arising from our commitment toplace sustainability at the very core of our Company’s
vision and activities. Our Report provides an overview ofour operations and highlights the progress, remarkableachievements, and sustainability targets that are central
to our future vision.
The decision to place sustainability at our core wasmade because it is fundamental to our future vision.
By being a sustainable organisation, we aim to balance
the Economic, Environmental and Social aspects of ouroperations. In our opinion, sustainability is paramount inensuring our continued growth and success by creating
opportunities that attract, motivate and challenge our
employees and provide value to our shareholders, whilst
at the same time, respect the community and environment
in which we operate.
In this Report, we present our performance related tovarious KPIs that were set for 2011. We also present
our business and operational KPIs that are set for theforthcoming year of 2012. Our main KPIs centre aroundensuring zero incidents and injuries to all our employees
while maintaining our production targets, adopting azero flaring policy to all our operations, maintaining
and improving on the protection and conservationof mangroves, corals, sea grasses and general
biodiversity.
In 2011, we were granted a prestigious HSE Award

8

Sustainability is

Fundamental
to our Future Vision
for our notable efforts in preserving coral and marine
biodiversity ‘Regeneration and Cultivation of Mubarraz
Island Marine Eco-System’. Apart from the awards,
our success in 2011 was measured based on severalof the initiatives that were introduced and successfully
implemented to promote a proactive HSE Management
System (HSEMS). These initiatives include theimplementation of an already established HSEMS Action
Tracking System for all activities. The Action Tracking
System was used to:•	Monitor existing gaps and develop action plans toclose out the gaps.
•	Track the improvement of the HSE Award system
to motivate personnel to be more proactive in HSE
activities.
•	Enhance the root cause analysis training to improvestaff competencies and prevent the reoccurrence ofaccidents in the future.
•	Continue sharing of key information and lessons
learned through the regular HSE meetings in Abu
Dhabi office and offshore operating sites.
Implementation of HSEMS is a significant achievement
which can be attributed to this year’s initiatives andthe positive responses of our concerned staff. HSEMS
helps to build internal strength to promote a safer, more

responsible work environment. Another key indicatorof safety performance is Lost Time Injury Frequency(LTIF), and for the year 2011, we have achieved zeroincidents not only internally, but also by our contractors.
The promotion of our awareness campaign “Promoting
Safety Culture of Lessons Learned from Incidents andSharing by all Concerned” has proven to be extremely
effective throughout the Company.
On the business front, we will be updating our Strategic
Plan for the coming year. One of the main objectivesof this Plan is commitment to sustainability from theperspective of operations excellence and service
delivery. On the environmental front, we are committed
to continuously reducing our environmental footprint
and to enhance a healthy and safe workplace for our
co-workers.
We have been working hard to take tangible steps
to construct quantitatively sound environmental andcarbon footprint baseline measurements in areas ofgreenhouse gas emissions, resource consumption, andwaste management. Once this measurement baseline isset, it will be used as the basis for developing corporate
improvement targets that will be integrated into ourmonitoring and reporting KPIs.

On the social front, we have been focusing on enhancing
our repertoire of employee skills. Our Human Resources
Department has continued to improve our performancethrough planning and review, career planning, andflexible benefits and incentives in support of enhanced
employee satisfaction and engagement. Furthermore,
our health and safety culture has been further deepened
and improved through additional training to reduce risks
to personnel and assets. We have also been involvedin various social and educational activities in Abu Dhabi
as a means of becoming closer to our community anddemonstrating social corporate responsibility.
As a final note, I would like to take this opportunity tothank all of our employees and contractors for theircontinuous efforts towards sustainability and HSE
excellence. I would also like to express my commitment
to support future internal and external initiatives
towards the continuous improvement of sustainable
performance for the benefit of the economy, society andthe environment.

Yukihiro Tanaka,

Representative & General Manager, ADOC.

9

Annual Sustainability Report 2011

Our Business Goals and Achievements

We have committed ourselves to improving the ability ofassigned staff in identifying the root cause of incidents
and near misses. We have furthermore ensured that
effective corrective actions and lessons learned areshared between employees to avoid recurrence of thesame incidents and near misses.
Other notable achievements for the year 2011 include
the effective implementation of the revised Permit toWork (PTW) system. In addition the development of
Assets Integrity Management System (AIMS) took place.
AIMS ensures the technical integrity of existing assets
and future assets during all lifecycle phases. As a partof AIMS, an HSE Critical Equipment Study determines
actions required to maintain facilities which have been
designated through Criticality Ranking.

2013
Planned2014
Planned2015
Planned2016
Planned“Ensure Safe and Stable Operations.”

2012
Estimated

Our prime objectives are to ensure safety and stability
throughout all operations with minimal impact on theenvironment. This has been an ongoing target and is stilla priority today. Production targets have been met while
implementing safe and stable operations in all of the
production facilities, from drilling to oil refining.

development of local capital. In 2011, 23% of Emiratization
had been achieved in line with the five year Emiratization
plan (see table below).

UAE Nationals

37

48

54

58

62

66

Total Staff

159

175

174

170

168

169

Emiratization %

23

27

31

34

37

39

2011
Actual

Our yearly performance targets for each year are set in
the last quarter of the preceding year. Production levels
have been maintained for the year 2011 and will remain
at the same target level for 2012. Furthermore, we aim
towards the realization of an early production scheme for
Al Hail field.

Total

We have and will continue to maintain a strong relationshipwith UAE educational institutions to help with meeting thefive year Emiratization plan.

“Study Leave packages were createdand promoted within ADOC toencourage the advancement of local
staff.”

Securing business consistency through knowledgesharing and training is one of our key priorities. We
have accomplished that in the past year through the
documentation of newly required guidelines in several
administrative areas (Accounting, Commerce, and HR)
and through the promotion of necessary documentation,such as standardization manuals to share businessknowledge and know-how.

Apart from the operational and business related targets
for 2011, we had set targets related to communication
strategies for societal advancement and Corporate Social
Responsibility (CSR). These CSR initiatives are:•	Compliance: Comply with the local laws/regulations
including ADNOC CoPs and to abide by the Company
rules and regulations.
•	Environmental Protection: Mangrove plantation,
Coral preservation, Sea grass transplantation,
Osprey monitoring and development, 3Rs(Reduce, Reuse, and Recycle) for waste
management.
•	Occupational Health Risk Management: Establishedbased on the results of a risk survey and which
reduced the risk level of activities with high risks.
•	Social Contribution: Enhancing the communication
between employees and the community and also
proactive participation in these planned activities.

Emiratization has been a target for 2011 and is still
an ongoing target for 2012. In 2011, a Competency
Based Training (CBT) system had been created for the

In terms of the social activities for us in the UAE, we plan
on becoming more involved. In 2011, several internal
sports activities were organized through Social Welfare.

“Promoting Team-Spirit throughEffective Communication.”

10

Activities Committee (SWAC) to build stronger bonds
among the employees as well as with the management
for better communication. We also communicated with
ADNOC “Corniche Sports Club” and received permission
to train with their Basketball team with an aim toparticipate in future tournaments with ADNOC and its
Group of Companies. We improved the variety of foodand gymnasium facilities in Abu Dhabi and Mubarraz
Island for the improvement of our employee health.

Our plan on maintaining these social activities in 2012 andin enhancing them depending on resource availability. In
2011, we spent 147 million USD on operational costs,
employee compensation, and donations.
Our primary business target for 2012 remains the safetyof its employees and operations. Apart from that, we plan
to maintain and increase the production volume from theexisting oil fields“To conduct our operations steadily and smoothly with the utmost attention
to improving operations management, the integrity of equipment and the early
detection of defects and faults.”
We are focusing on creating a long-term business planfor the next thirty years to encompass Our development
and production. This will be done through studies andreviews related to: environmental protection, CSR
activities, enhancement of compliance to international
standards and to ADNOC’s CoPs, consistency of job
performance and infrastructure of accounting andpurchasing systems.

For the year 2012 and for the long-run, we intend
on maintaining strong relationships with the nearby
community through sponsorships of employment
exhibitions and academic events. We intend on
maintaining strong ties with the Higher College
of Technology (HCT) and other local academic
institutions. These initiatives are put in place toattract the finest talent of Emirati staff throughinternship programs and work placements.

Ensure Safe andStable Operations

11

Annual Sustainability Report 2011

Introduction – Our Operations
We operate three (3) offshore oil fields; Mubarraz, Umm
Al Anbar (AR) and Neewat Al Ghalan (GA) which arelocated west of the Emirate of Abu Dhabi, UAE.
The main process and supporting facilities are located on
Mubarraz Island, south of GA field. The Mubarraz Island
facilities include oil and gas processing, crude storage,
crude loading, utilities, accommodation and other related
infrastructures. Crude oil from Mubarraz, AR and GA fields
is blended at Mubarraz Island and shipped as Mubarraz
Blend Crude Oil.
We have demonstrated our commitment to environmental
protection and gas conservation through various
significant and challenging projects, including Sour Gas
Injection Project (SGIP) and Zero Flaring Project (ZFP).

Operations at Mubarraz Field

Mubarraz Field is located west of the Emirate of Abu
Dhabi. There are the Central Facilities Platform, three
production platforms and eighteen well platforms in
Mubarraz Field. These platforms are connected via
submarine pipelines and submarine cables.
Central Facilities Platform (CFP) - The crude oil fromthe production wells at the Mubarraz Field is gatheredat the CFP through sub-sea pipelines and is transported
to the final processing facilities at Mubarraz Island. The
CFP is equipped with gas and water separators as wellas power-generating facilities. Additional platforms,
namely CFP Control Room (CCR) Platform, a living
quarter platform and BB well platform, are interconnectedby bridges. On the CCR platform, well monitoring andcontrolling apparatus are installed. The living-quarter
platform includes accommodation, helipad and otherresidential facilities. Production and disposal wells arelocated on the BB well platform. Separated water at the
CFP is injected into the underground formation throughthe disposal well.

Operations at AR and GA Fields

These fields are located west of the Emirate of Abu Dhabi.
Commercial production was commenced in AR Field in
1989 and in GA Field in 1995. AR Site Terminal (ARST) is
located at the centre of the AR Field and is equipped withoil processing facilities, sweet gas injection facilities andsour gas injection facilities. The wellhead streams fromboth fields are gathered at the process facilities at ARST,
where oil and gas are then separated. The separated oil
is sent to Mubarraz Island and the separated gas is sent
to the sour gas injection facilities and sweet gas injection
facilities through the sweetening units for gas injection.
The ARST is located north of Mubarraz Island, and acauseway provides onshore access from Mubarraz
Island to ARST.

Operations on Mubarraz Island

The crude oil from the Mubarraz, AR, and GA fields aretransported via pipelines and gathered at Mubarraz
Island where there are processing facilities to refine
the crude oil into the final crude product and loading
facilities for shipment. There is also a residential facility
accommodating approximately 500 personnel, together
with sports and recreational facilities including a soccer
ground, tennis courts and a golf course, etc.

Rig Operations

An offshore rig is used for drilling new wells or to workover existing wells. We use a jack-up type offshore rig,
specially designed for operating in shallow water in ourfields, which is also commonly utilized in the Arabian
Gulf. The rig consists of a barge-shaped hull with threecylindrical legs and is equipped with a derrick and special
devices for drilling and workover operations. The jack up
rig is towed to a location with its legs up, and the legs
are firmly positioned on the sea bottom at the site forworkover or drilling operations.

Mubarraz

Island12

13

Annual Sustainability Report 2011

Our Projects
Sour Gas Injection Project

Before the implementation of the Zero Flaring Project,
we used to flare associated gas at three operatingsites, namely Mubarraz Field Offshore, Mubarraz Island
and AR Site Terminal (ARST). The gas flared at ARST
contained high concentrations of Hydrogen Sulfide (H2S)
and Carbon Dioxide (CO2); therefore, finding a solution tothis issue was a high priority.
Under the guidance of the Supreme Petroleum Council(SPC), and in close collaboration with Abu Dhabi National
Oil Company (ADNOC), we have been instrumental in
introducing sour gas injection technology to the Arabian
Gulf, whereby sour and acid gas is recovered andsubsequently injected into the oil reservoirs of AR Field.
The Sour Gas Injection Project (SGIP) called for the

Zero Flaring Projects

The Zero Flaring Project’s (ZFP) prime objective wasto minimize the amount of gas flared at Mubarraz Field
Offshore and Mubarraz Island, in order to mitigate
the air pollution impact of high sour gas flaring, andto comply with the Abu Dhabi National Oil Company(ADNOC) guidelines on environmental protection rules& regulations and under the guidance of the Supreme

installation of four sour gas compressors, a dehydration
unit and a tie-in to the existing process facilities at
ARST.
As sour gas injection into oil reservoirs with highpressures was a leading-edge technology, thoroughinvestigations and engineering studies were undertaken
prior to execution. This was done in order to ensure that
reliable, stable, continuous and safe operations would
be achievable. The SGIP was successfully executed inaccordance with the proposed schedule and budget,
although some variations were made throughout.
Currently, sour and acid gas is continuously injected into
the oil reservoirs of AR field and consequently, flaring at
ARST is nominal, leaving only a small pilot burner.

Petroleum Council (SPC).
As a result of the ZFP, almost all of the gas which used to
be flared at each site is transported to ARST and injectedto the oil reservoirs through the sour gas treatment andcompression facilities.

Zero Flaring
Project in

Mubarraz

Field

14

15

Annual Sustainability Report 2011

We are notmakers of history

Our Timeline of Emergence

We aremade by history‘We are not makers of history. We are made by history.’In the summer of 1967, His Highness Sheikh Zayed Bin
Sultan Al Nahyan, the former President of the United
Arab Emirates and the former Ruler of Abu Dhabi, may
his soul rest in peace, took the decisive step of allowing
Japanese companies to acquire oil concessions in the
Emirate of Abu Dhabi, which until then had been granted
only to Western companies. Taking this opportunity, three
Japanese independent companies, Maruzen Oil Co., Ltd.,
Daikyo Oil Co., Ltd. (which has merged into the present
Cosmo Oil Co., Ltd.) and Nippon Mining Co., Ltd. (now JX
Nippon Oil and Gas Exploration Corporation) took part in
an international tender for a concession area relinquished
by Abu Dhabi Marine Operating Company (ADMA), andjointly submitted the winning bid. On 6th December of thesame year, an agreement concerning the exploration anddevelopment of the Mubarraz oil concession area in Abu
Dhabi offshore areas was signed.
On 17th January, 1968, Abu Dhabi Oil Co., Ltd. (Japan),(ADOC) was established with a capital of 600 million
yen, equally subscribed to by the three (3) companies. In
September 1969, the exploratory well No.1 successfully
produced the long-awaited crude oil. This undergroundstructure was given the name of Mubarraz Oil Field, andwas the first step towards our success in Abu Dhabi.
Although the UAE was founded on 2nd of December,
1971, we had advanced into this area before the nation
came into existence. In May 1973, the production of oil
began, and in June 1973, the first shipment of Mubarraz
crude oil left for Japan.
On 28 April 1979, we entered into a supplementaryagreement, which granted us a new concession in
the West Mubarraz area, offshore Mubarraz Island.
On 27th August of the same year, we with our three(3) parent companies established Mubarraz Oil Co.,
Ltd., (MOCO), for the exploration and developmentof the new concession area. Consequently, the West
Mubarraz Concession area was transferred to MOCO,
and an operating agreement was concluded between us
and MOCO in which we undertook the management of
all operations in the new concession area.
th

Umm Al-Anbar Oil Field, (AR), and the Neewat Al-Ghalan

16

Oil Field, (GA), of the new concession area, started oil
production in 1989 and 1995, respectively. The crude oil
produced from these two oil fields and the Mubarraz crude
oil is commingled and the new commingled oil was given
the name of “Mubarraz Blend”, the entire production ofwhich has been regularly shipped to Japan.
Meanwhile, the Japanese government decided toabolish the Japan National Oil Corporation, (JNOC),
in March 2005, and a problem arose concerning thedisposal of its assets. In these circumstances, we
acquired all of the assets of MOCO in February 2005
and on 1 st January, 2006, MOCO was completely
merged with us. On 3 rd February, 2011, we successfully
signed a new Concession Agreement with Supreme
Petroleum Council (SPC) to continue production of oilfrom the existing 3 oil fields, namely Mubarraz, AR and
GA oil fields after the expiry of the current Concession
Agreement on 6th December, 2012, for a period of 30
years together with the development of some structuresof the Hail Field which is adjacent to Mubarraz Island.
The UAE has attained remarkable growth in crude oiltransactions with Japan, which is currently relying on the
UAE for approximately one quarter of its entire crude oil
imports. On the other hand, Japan is a trading partnerthat accounts for nearly 15 per cent of the UAE’s foreign
trade. Consequently, the two countries are enjoying a
deep- rooted, diversified and strong relationship.
Our company, a 100-percent Japanese-operating
independent operator, has established over the years anelaborate optimal operation system in close cooperation
with ADNOC. Since our establishment, we have beenhighly regarded for our steady achievements in Abu
Dhabi.
Based on the good reputation we have earned over theyears and the Government of Abu Dhabi’s appreciationof our performance, we will continue to exert strenuous
efforts to enhance our production capacity and tomaintain our operations efficiently, in an environmentfriendly manner, with a special emphasis on environment
issues.

17

Annual Sustainability Report 2011

Timeline
1967• December 6 - A concession agreement for areas A and B is signed

1996• June 24 - Our head office is moved to Shinjuku Daiichi Seimei Building

1997• March 9 - The cumulative production reaches 200 million barrels

1968• January 17 - We established jointly by Maruzen Oil Co., Ltd., Daikyo Oil Co., Ltd., and Nippon
Mining Co., Ltd• February 1 - T he three companies transfer the concession to us• September - The Mubarraz oil well No.1 successfully produces crude oil

1998• January - We celebrate 30th anniversary of its establishment

1971• July - Development of the Mubarraz Oil Field begins

2000• November - A “sour gas” injection project is launched

1972• April - Construction of the Mubarraz Island terminal begins

2001• May - A “zero-flaring” project is initiated; underground disposal of waste water begins

1973• May 7 - Mubarraz Oil Field starts production• June 6 - The first shipment of Mubarraz crude oil is made2002

• January - The cumulative production reaches 50 million barrels. (MOCO)

2003• May - We celebrate 30th anniversary of its commencement of oil production

2004• July 27 - Crude oil shipments reach a cumulative total of 500 shiploads

2005• June - The cumulative production reaches 200 million barrels. (ADOC)

2006• January 1 - We merge with MOCO

2007

• February 26 - Our head office is moved to Tennoz Central Tower

2008• January 17 - We celebrate the 40th anniversary of its commencement of oil production

2009• September 13 - The cumulative production reaches 300 million barrels

2010• July 1 - Japan Energy Corporation and Nippon Oil Exploration Limited merge and JX Nippon Oil& Gas Exploration Corporation is established.

2011• Feb 3 - We successfully signed a New Concession Agreement to continue production of oil fromthe existing 3 oil fields, namely Mubarraz, AR and GA oil fields after the expiry of the current
Concession Agreement on 6th December, 2012, for a period of 30 years together with thedevelopment of some structures of the Hail Field which is adjacent to Mubarraz Island.

1979

1982

• June 19 - AR well No.1 successfully produces crude oil

1985• February - Development of AR Oil Field begins

1986• April 1 - Maruzen Oil Co., Ltd. & Daikyo Oil Co., Ltd. Merge; Cosmo Oil Co., Ltd. established1988• January - Construction of AR Oil Field production facilities begins• February - The cumulative production reaches 100 million barrels• March 8 - A concession agreement in the GA area (80 square kilometres) is signed

1989• January 10 - AR Oil Field starts producing crude oil• March 5 - ADOC’s head office is moved to Shinjuku Daiichi Seimei Building

1992

18

• April 28 - A concession agreement for the West Mubarraz area is signed• September 10 - The concession in the West Mubarraz area is transferred to MOCO

• November 20 - Crude oil shipments reach a cumulative total of 300 shiploads• December - Nippon Mining Co., Ltd. and Kyodo Oil Co., Ltd. merge and Nikko Kyoseki Co.

1994• July - Development of GA Oil Field begins

1995• July 10 - GA Oil Field starts producing crude oil

19Annual Sustainability Report 2011

Grown

mangrovetrees inMubarraz

IslandOur Governance, Commitments andEngagements
We are owned by a number of Japanese shareholder
companies. They are selected based on their interest in
joining our company and contributing to its development
and growth. They are actively engaged, participatingin key governance functions through an annual
shareholders meeting, and are included in key decisionmaking processes regarding the future of our company.
Shareholders receive benefits in the form of dividends
proportionate to their shareholdings.

Our Board of Directors

The company is controlled by the Board of Directors. It
is responsible for resolving legal and regulatory issues
and items in the Articles of Incorporation. The Board
also establishes management policy and supervises
appointed directors.
Regulations governing the Board of Directors stipulate
that, in principle, meetings are to be held on a quarterly
basis, and that extraordinary meetings are to be held
when necessary. During meetings, directors makedecisions on important management-related matters andexamine progress on business initiatives and measures
for resolving problems.

Sustainability is deeply integrated into all aspects of thecompany, including operational lines. Specific responsibility
for the firm’s sustainability, including setting sustainability
targets and KPIs, developing our sustainability corporate
strategy, monitoring the implementation and achievementof targets and KPIs and assigning sustainability related
responsibilities to personnel is currently assigned to Mr.
Yuji Nakamori. Mr. Nakamori is our SE manager, andhas been assigned a new role as head of the company’ssustainability initiatives.

Stakeholder Engagement

We define stakeholder as any person or group of people
that may be affected positively or negatively by thefinancial, environmental (including health and safety) andsocial aspects of our operation, and those who have aninterest in or have an influence on our activities.

The Executive Board Meeting makes decisions anddeliberates on basic policies and important mattersconcerning business execution in accordance with basic
management policies as determined by the Board of
Directors.

Internal stakeholders are identified as follows:

Employees

Selected based on the assigned job
description, experience, qualification, andperformance.

Regulations governing the meeting stipulate that our
Directors meet once a week and that additional meetings
are convened as required. Our President chairs thesemeetings with the attendance of our Executive Directors
and Executive Auditors.

Contractors andSuppliers

Selected based on the technical andcommercial proposal for a specific service.

Management
Team

Selected by the Board of Directors.

Shareholders

Selected based on their interest in joining
our company and contributing to its
development and growth.

Sustainability Organization

Managerial responsibility has been delegated to Mr.
Yukihiro Tanaka as Representative and General Manager
of our Abu Dhabi office. Mr. Tanaka exercises his authority
through a Management Team; whose mandate is tosupport the Company. The Management Team includes
eight (8) department managers, namely: Manager ofGovernment and Local Relations Department (GL),Manager of Administration Department (AD), Manager

20of Human Resources and Development Department(HR), Manager of Finance Department (FA), Manager ofPurchasing and Transport Department (PT), Manager ofDevelopment Department (DP), Manager of Processingand Maintenance Department (PM), and Manager of
Health, Safety and Environment Department (SE).

Stakeholder

MethodThe Supreme Petroleum Council (SPC) is the regulatory
body for Health, Safety and Environment (HSE) for the oiland gas industry in Abu Dhabi. It developed the ADNOC
HSE policy and strategy and oversees corporate HSE
performance. The SPC also ensures that the ADNOCGroup of Companies comply with the corporate HSEstandards, policies and the ADNOC Codes of Practice. The

21

Annual Sustainability Report 2011

Our Business Strategy
SPC liaises with Federal and Abu Dhabi HSE authorities
on behalf of ADNOC Group of Companies. Our otherstakeholders are ADNOC and its Group of Companies,
and local communities, i.e., schools, colleges and familiesof employees.

Policies and Procedures

The Technical Committee Meeting (TCM), held bi-annually,is one of the main methods of keeping stakeholders (SPC
/ ADNOC) informed. This approach has been continuously
encouraged and mandated by office management.
Technical and Budgetary issues are discussed in thesemeetings including short-term and long- term targets.
These issues are monitored by the Action Tracking System(ATS).

In addition, we abide by various national and internationalguidelines and regulations. The main guidelines andpractices that we comply with are ADNOC’s Codes ofPractice, which are based on international standards
and guidelines such as: NFPA, EPA, MARPOL, API, andOGP.

Our aim for the forthcoming years is to develop a morediverse and far-reaching stakeholder engagement program
to further enhance our sustainability performance.
The following table provides an idea of how our stakeholder
map will be presented in the following sustainability
reports.
Stakeholder
Employees

Category Subgroups
Employees
Potential Employees

Ways in which We
EngageCompany surveys

Local Authorities
Local
Communities•F undraising proEnvironmental Organigrams
zations• Involvement incommunity activiCommunity Committies
tees

Suppliers
Academic
Government
and Regulators

22

Supplier surveys
Institutes•F unding•S cholarship

SPC / ADNOC•C lient surveys•C onferences/training events

We have developed, and are continuously implementing,a number of internal policies and procedures. Detailed
Codes of Conduct are in place and have to be implemented
across the Company.

Communication procedures are in place for shareholders
and employees. Issues and concerns of employees andshareholders are communicated directly to the governancebody (GM), who will eventually communicate the sameto the Board of Directors. In addition, recommendations
for improvement and enhancement of work may similarly
be communicated to the governance body (GM) and theBoard of Directors.
The governance body will carry out a performance
evaluation through conducting internal audits, preparing
sustainability reports, holding HSE Committee meetingsand HSE Patrols. Our audit committee will evaluate theperformance of the organization. The main evaluation
aspects include economic, environmental, and social
performance.

Membership and Enrolments

The majority of our memberships have been obtained
through ADNOC. Our main memberships include: Abu
Dhabi Sustainability Group (ADSG), Oil and Gas Producers
Association (OGP), and Abu Dhabi Emergency Support
Committee for Offshore Operators (ADESCO).

Our business strategy is centred on ensuring safe andsustainable operations. The production planning target
for the year 2012 is to exceed the target level of 2011.
This oil is to be produced from the three existing oil
fields and through the realization of an early production
scheme from Hail field. The primary concern of ourbusiness strategy is to conduct our operations steadily
and smoothly with the utmost attention to improving
operations management, the integrity of equipment andthe early detection of defects and faults.

Economy Strategy

The financial performance for the year 2011 includes arevenue stream of 976 million USD. Operational costs,
employee compensation, and donations amounted to
147 million USD.
Our economic expenditure includes a budget that is set
aside on a yearly basis for environmental protection andpreservation. Environmental expenditure covers activities
such as waste disposal, renewable energy development
and implementation, emissions treatment, remediation
costs, prevention, and environmental management. The
following table shows the breakdown of the environmental
budget for the year 2011.
Type of Environmental Expenditure
Waste Disposal

Cost (AED)
10,705,428

Renewable Energy

0

Emissions Treatment

0

Remediation Costs

105,024

Prevention

165,150

Environmental Management

178,087

Procurement is an integral part of our economic
strategy. We maintain strong relationships with our
suppliers and only acquire services and products froma list of vendors who meet certain quality standards.
Our pre- qualification process is stringent in which all

vendors are registered and pre-qualified. When a needis established by the concerned department/end- user
to procure a product or service, the Purchasing andTransport Department becomes involved in a stage-gateprocess where the qualified vendors are approved by theTendering Board and are notified to bid in a structured
tendering process. Once vendors submit their offers
through separate technical and commercial bids, thebids are evaluated on a two-tiered scale. Offers are firstevaluated based on their technical acceptance; all offersthat are not technically acceptable by the concerned
department/end-user are excluded from the second
stage of evaluation. In the second stage, the offers areevaluated on a commercial scale and a vendor is thenselected. Once an agreement is made on the scope ofwork, schedule, and cost of service, the vendor is thencontracted by us through a binding contract.
Our procurement practices are biased towards local
vendors based in the UAE; this is done in order to boost the
local economy and contribute to the Emirati community.
In case of the unavailability of a suitable pre-qualified
vendor in the UAE, we invite international vendors to bid
on a particular product or service. The following pie chart
demonstrates our spending percentage on procurement
between local and non-local vendors.

Procurement Budget for 2011 (AED)
Local Vendors

Non-Local Vendors

71%

29%

23

Annual Sustainability Report 2011

Our Employees
Our Workforce

We realise that our employees are the backbone of
our company. As a result, we aim to provide them withattractive benefits and a positive working environment,
where they can thrive and prosper. We have increased
the number of employees from the year 2010 to 2011 by
10% to satisfy our production increases and meet ouroperational targets.

600

Training and Development

Total Workforce by Employement Type

500

482
431

400

344
303

300

2010
2011

200
128

138

100
0

Diversity

Total workforce

Fulltime employees

In order to maintain our impressive turnover rate, we try
to focus on the training and development of our staff. Not
only does training ensure a high calibre of skills for our
staff, but it also contributes to the empowerment of ouremployees to innovate and remain motivated. Training
and development covers both technical and non-technicalskills to ensure a well-rounded workforce that is easily
adaptable under all circumstances. All of our fulltime

employees receive annual performance and careerdevelopment reviews as a follow-up to their ongoinglearning and development career plan for the duration of
their employment.
Our employee training participation, hours, and coststatistics for the year 2011 are presented below.

Supervised contractors

Diversity has enriched our organisation and provided a positive working atmosphere. Our company has attracted
various ethnicities and age groups.

Emirati

Employee Breakdown by
Age (%)

Western Expat
Arab Expat
Other
Asian Expat<30
years old

Between 30-50
years old

Employee Breakdown by
Gender (%)
Female>50
years old

32%
94%

89%

15%

40
100

63%

3%

11%

30

We follow a zero-discrimination policy in the workplace. No cases of discrimination, forced labour, or child labour havebeen reported in the year 2011. Engagement relations are managed by our Administration (AD) Department as nocollective bargaining or union arrangements are permitted under the UAE labour law.

0

%
Grade
17 and above

Grade
14-16

Grade
11-13

16.5

13.6

10

25.9

20

Equal Opportunity

20
15

40

26.2

25

63.4

60

35.5

35

95.8

80

8%

Average Training Hours per Employee

120
100

1%

22%

Male

Percentage of Employees Participating inTraining

Grade10and below

Average Hours per employee

Employee Breakdown by
Ethnicity (%)

5
0

Grade
17 and above

Grade
14-16

Grade
11-13

Grade
10and below

Turnover and Retention

Turnover Rate (2010-2011)

3500
20910

3000

Turnover Rate

2500

20

2000
1366

1500

15

1000
500
5
4
2010

Cost of Training (AED)

2011

0

758
68
Grade
17 and above

Grade
14-16

Grade
11-13

Training Hours

Number of Employees Leaving

Training Hours

Grade
10and below

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0

89000

92000

Grade
11-13

Grade
10and below

Cost of Training (AED)

Our employee turnover rate for the reporting period is relatively low for our industry. At 4.0%, our turnover rate is lower
than the ADNOC Group of Companies’ average of 7.7%, as reported in the 2011 ADNOC Sustainability Report.

47000

2320
Grade
17 and above

Grade
14-16

This low turnover rate can be attributed to many factors, most notably the working environment which is greatly
influenced by Japanese-style ethos and practices, including our home from home working atmosphere. Moreover, invaluing our employees, ADOC offer attractive employment benefits including; healthcare, disability/invalidity insurance,
education assistance, generous leave policies and end of service benefits. Consequently, ADOC continue to retain
skilled and experienced employees and, as such, productivity is maintained.

24

25

Annual Sustainability Report 2011

CASE STUDY:

Health & Well-being

Soft skills training offered includes: Business English at various levels; SMART objectives and KPIs; Communication and Team
Building; Creative Problem Solving and Decision-Making; Administrative Skills; Project Management; Legal Translation; Budgeting
Skills; Interviewing Skills; and Cultural Awareness Workshops.

We invest in our employees’ health and well being by
providing them with various training and awarenessprograms throughout the year for serious disease
prevention control. We have an Occupational Health
Risk Management System (OHRMS) in place to fostera safe and healthy work environment. This system is incompliance with the ADNOC Code of Practice CoPV110.

Technical skills training offered includes: Acid gas injection; Sour gas treatment and effective management; environment waste
management and control; SPHR – SHRM Learning System; Plant Safety Audit & Process Safety Management; Risk Managementand Loss Prevention, Accident Investigation and Root Cause Analysis.

In 2011, our employee exposure hours were 2,873
and the occupational health injury and illness rates,
including occupational diseases, lost days, absenteeism

Training and Development
In 2011, we have delivered over 32 courses to our employees. Our training and development program includes courses that focus
on soft skills and technical skills, equipping our staff with tools to execute their day-to-day operations on site and at the office.

and work-related fatalities, were zero per 200,000 manhours worked.
A detailed procedure for HSE Training (SE/GP-05) isapplied to all new employees, and existing employees
taking up new roles; this applies to all personnel working
in our company, including contractor staff. The objectiveof the procedure is to ensure that all employees andcontractors have the knowledge, skills and values
necessary to fulfil their HSE job requirements and to
avoid the incidence of occupational injury and illness.

CASE STUDY:
Procedures for HSE Training
The procedures for HSE Training were initially released in 2008. In the first quarter of every year, all employees are provided
with a yearly calendar that has a list of all targeted-training courses related to HSE. Amendments to this schedule are based on
departmental needs and job requirements. The Procedure is broken down into the following steps:
1. Determine the Training Needs of the employee and supervisor in order to understand the required HSE skills for each position
2. Periodically review HSE Training to monitor the need for any revisions of requirements
3. Provide training in one of the following methods: HSE Induction, HSE Training Courses, Emergency Drills, or Departmental
4. Emergency Drills
5. Maintain and update training records on a regular basis
6. Evaluate the effectiveness of HSE Training on a yearly basis
7. Organise Special Fire Brigades at Mubarraz Island, Central Facilities Platform, and Abu Dhabi office. These Brigades are meant
to provide employees with knowledge of fire fighting and spill control (where applicable)

1. Determining
Training Needs

6. OrganisingSpecial Fire
Brigade2. Periodic Review
of HSE Training

Continuous
Improvement

Participants of the Accident Investigation& Root Cause Analysis Training Session

3. Method ofProvidingTraining

5. Evaluating theEffectiveness of
HSE Training

4. Training
Records

26

27

Annual Sustainability Report 2011activities at

AlMayaIslandOur Communities
We have found a home away from home in Abu Dhabi.
The UAE and Japan maintain extremely close economic
relations in which both countries are aligned to form a
symbiotic relationship that is beneficial to both. Japan isa very important trading partner of the UAE, both in termsof exports and imports, while the UAE is one of Japan’slargest suppliers of crude oil. The bilateral relations
between the UAE and Japan have become stronger inrecent years, as exchanges have developed, not only inthe economic field, but also in other areas such as culture
and sports.
Development of oil in a foreign country makes adapting

to and integrating into the culture and traditions of thatcountry crucial, in order to establish and maintain amutually respectful and cooperative relationship. In
our Abu Dhabi Field Office, there are more than 350
non-Japanese employees, including Emiratis and morethan 20 other nationalities. Our contribution to the UAE
community is exemplified in our employment of Emirati
and non-Emirati expat staff with attractive benefit
packages, salaries, and amenities. Throughout almost
45 years of history, we have established unshakable
cooperative relations between the locally recruitedemployees and the Japanese.

Tennis Courts

Gymnasium

ClinicAccommodation Buildings in
Abu Dhabi

Front Entrance to ADOC

Accommodation Facilities on
Mubbaraz Island

Staff Mess28

29

Annual Sustainability Report 2011

Our corporate history reflects theresults of not only our cooperative
relationship
with
non-Japaneseemployees, but also with the
Abu Dhabi government and theUAE community. We realise theimportance of community acceptanceof our operations, and since 2010 wehave been involved in ongoing social
promotional activities to raise theprofile of our company in Abu Dhabi.
We have participated in tennis,
football, and basketball tournaments.
We also encourage the families ofour employees to be involved inthese social activities to promote a
healthy lifestyle and create a worklife balance.

Maya Island Family Trip

Sports Day

Our Employees enjoying an outing in Al Maya Island

It is our great pleasure to be
operating in Abu Dhabi as we are
one of the oldest oil companies
in the city and the first nonWestern oil development company
in the Gulf. We take pride inthese
accomplishments
andare committed to promoting ourcompany’s reputation and attracting
qualified Emiratis to join in our
team. In the field of education, we
have introduced the Study Leave

Our participation in the 8th Abu Dhabi Industry Award

Program, a new program whichallows our Emirati employees towork for us after graduation for aperiod equivalent to the study leave
period. We have also been active
participants in the Higher Collegesof Technology (HCT) Employment
Expo; and, due to their appreciationfor our sponsorship, we were therecipient of the Abu Dhabi Industry
Award in May 2011. The Abu Dhabi
Industry Award is a unique initiativeby industry leaders and executives,
who are members of HCT’s Program
Advisory Committee, which aims toencourage UAE National students
in their pursuit of academic
excellence.

Japanese School Sponsorship

We are proud to be a member of theUAE community, and we will continue
to explore new avenues in which we
can participate and give back to the
Emirati community to highlight our
corporate social responsibility.

New Year Celebrations

30

Cleanup Arabia

31

Annual Sustainability Report 2011

Our Environment Initiatives and Achievements
Environment

Our vision is to maintain a balance between ourenvironmental footprint and carbon intensity, andour business growth. We believe that environmental
stewardship should be enforced and practiced at all levelsof hierarchy. Our environmental management system
is embedded in all our operations, where it assists inachieving our vision. Due to the nature of our business, weface major challenges in terms of environmental protection
and conservation, resource usage, greenhouse gas
emissions, and waste management. Our development isdependent on extracting resources from the environmentand our growth depends on the crude oil that we produce
and sell; therefore, we owe it to our environment to protect
it and preserve its natural beauty. Clear environmental
targets help us in monitoring, assessing, and reviewing
our performance; ensuring that we remain accountablefor our sustainability commitments. The following sections
discuss our performance, initiatives, achievements andtargets for each of the major challenges.

Materials

Our material use has been increasing steadily due toour corresponding growth. For the year 2012, we planon exploring venues where we can use recycled input
material.
By Weight (Tonnes)
2009
2010

2011

Total Material

1,169,749

1,111,280

1,811,216

Recycled Input
Material

000

Direct Materials
2.000.000
1.800.000
1.600.000
1.400.000 1,169,749
1.200.000
1.000.000
800.000
600.000
400.000
200.000
0
2009

32

1,811,216

EnergyOur operations are run using direct and indirectenergy sources. We generate direct energy ourselves
while indirect energy is either imported or consumed
from external sources. Our approach towards energy
management is to increase energy efficiency by reducing
consumption and losses at the source. To meet ourenergy efficiency initiatives, we have already audited ourenergy usage and are now monitoring it on a yearly basis.
This helps us to understand, where we can improve andreduce our carbon footprint. We are also pursuing theuse of renewable energy sources, such as solar power,
and have existing solar power systems installed to power
our electrical equipment at our HQ office.
Comparison of Energy Usage
2009
2010
Generation (KWH)
Import (KWH)
Consumption (KWH)

2011

2,703,970 172,244,260 175,144,370
88,826

4,696,557

3,862,376

2,792,796 175,656,969 179,006,746

Power consumption
per ton of Production
149(KWH/MT)Power loss per ton of
Production
1(KWH/MT)
Direct Energy
Consumption - non- 2,792,796
renewable (GJ)
Direct Energy
Consumption 25.6
renewable (GJ) /Energy Saved
Total Indirect Energy
17,591
Consumption (GJ)
Corresponding
amount of primaryenergy used to
55,633produce the indirectenergy (GJ)

154

168

1

1

2,706,742

32,347,854

37

36

16,90813,90555,09245,306

1,111,280

2010

2011

33

3,100

1.6

2009

7,100

3.6

2010

10,2005.1

2011

10,0005.0DC(Direct Crrent)

1000

Effluents discharged to the sea include cooling waterfrom rigs and Central Facilities Platform (CFP). Other
effluents discharged include separated RO brine from thedesalination plant at Mubarraz Island.
The following graph demonstrates the trend in effluent
discharge for the years 2009-2011..
Oil & Water Separator

Gravity Separation

3500000
3000000

AC (Alternating
Current)

Solar
Panels2000000
1000000
500000Inverter0

ExcessPower
Dump Load
Flood Lights

Water

Power Consumer

Our approach towards water use is to ensure
minimization, wherever possible. We extract water fromthe Arabian Gulf for production and cooling purposes.
Nearby water bodies are not affected by this extraction
as the volume of water extracted is less than 5% of thetotal water body size. Part of the surface water is being
extracted from the Marawah Marine Protected Area;
however, the volume of water is also not significant
enough to affect the Protected Area’s ecosystem. Overthe coming years, we plan to reduce our consumption
and increase recycling/reuse of water in order toimprove water usage efficiency at our facilities and in
our offices.

34

2009

2010

2011

Climate Change Data

Control Panel

2000

0

NOx

Our policy on emissions is in line with ADNOC’s zero
flaring strategy. Furthermore, we have initiatives andprojects in place to reduce overall operational emissions.
For the year 2011, ADOC has achieved a reduction of
5,469 tonnes of CO2 equivalents. Zero emissions ofozone-depleting substances were recorded and no spillsof hydrocarbons occurred either. Lastly, there were no
accidental releases of Halons or CFCs.
Non-CO2 emissions are generated on our facilities
through power generation from our operations. The
most significant emissions that we monitor on a yearlybasis are NOx, SOx, VOC, and Methane. These aremonitored along with CO2 emissions due to their Global
Warming Potential (GWP) and detrimental health effects.
The following graph shows the quantities of Non-CO2
emissions for the years 2009-2011.

SOx

VOC

MethaneNon-CO2 emissions are converted to CO2 equivalents,
measured and monitored on a yearly basis. We workon reducing our emissions on a yearly basis throughvarious initiatives that include being more efficient as an
operator. The following table gives a detailed breakdownof the climate change data related to our operations fromthe years 2009-2011
Item

2500000

Display in
Entrance Hall

3000

206

2008

Effluents

ANNUAL EMISSIONS 2011

156

CO2 Reduction(tonnes / Yr)

ANNUAL EMISSIONS 201071

Power Generated(KW/Yr)

4000

93

Year

Produced Water
1,272,582 1,385,510 1,320,612
discharged to deep wells
Cooling Water Discharged
2,090,040 189,960 189,960
to SeaWater Withdrawal 3,085,950 1192412 1,014,258
Surface water
Municipal Water
15,504
8,575
56,637
Water recycled/reused
Nil
Nil
Nil

ANNUAL EMISSIONS 2009

106.9

Power Generated (Year 2008 – 2011)

2011

474

A Solar Power System was installed on the rooftop
of our Abu Dhabi Office in September 2008 to supply
power to the electronic devices in the Development
Department (DP).

2010

474

2009

3924.93787

5000

Comparison of Water Usage (m3)476.7CASE STUDY:

4585

Annual Sustainability Report 2011

Unit

Volume / Weight
2009
2010
2011

Total Gas
1
m3/yr
7,307,304 6,490,787 5,570,915
FlaredTotal Energy
2GJ
19,953 2,723,687 32361795
Consumption
EnergyConsumption
3
GJ/Tonne
0.017
318
per tonne of
Production
Total Production in year
4 Crude1,164,235 1,110,107 1067565
Tonne
Gas
1,247,265 1,288,445 738569
CO2
Emission
Kg/Tonne
206
216
220
5
per tonne ofproduction
GHG
Emission
6
Kg/Tonne
225
229
237
per tonne ofproduction
TonnesDirect GHG
394,596 254,241 248,478
7of CO2emissionsequivalent
TonnesIndirect GHG
8
of CO2
11,89912,7172,935
emissionsequivalent
Other
Tonnes899
16,183
16,4549 indirect GHG of CO2
equivalentemissions
GHG
Tonnesemissions10of CO2
0
6,080
5,469
reductions
equivalentachieved

Environmental Impacts ofTransportation

Transportation of equipment, materials and personnel
is a necessary activity in the daily running of ourbusiness, which generates emissions as it consumes
fuel. We use vehicles, planes, helicopters, and vessels
as transportation mechanisms. We do not have any
policy in place to reduce our footprint resulting fromtransportation; however, we will continue with regularpreventive maintenance of our transportation fleet topreserve their fuel-engine efficiency. For the upcoming
years, we plan on implementing logistical solutions to
reduce our emissions from transportation.
VehicleDistance
travelled in thereporting period(km)
Energy use (GJ)

Plane

5,866,740 64,040

Helicopter

Vessel95,102956,937

16,731

61

9,369

159,105

Emissions of NOx(tonnes)

18

0

3

257

Emissions of SOx(tonnes)

2

0

2

26

Emissions of
CO2 (tonnes)

1,471

10

780

13,593

Total spills (m3)

0

0

0

0

Solid Waste Management

Due to the nature of our operations, we generate both
hazardous and non-hazardous wastes. We manage
our waste in conformance with ADNOC CoPs on Waste
Management and with due regard to Abu Dhabi & UAE
Federal Regulations. We segregate our waste andstrive to apply the 3R principle (Reduce, Reuse, andRecycle) wherever applicable. Non-hazardous wastes
are transported to ESNAAD; whereas hazardous
wastes are transported to BeAAT through ESNAAD
for treatment and disposal. ADNOC ensure that all
hazardous wastes are properly managed and disposed
to BeAAT (Central Environmental Protection Facilities
Project), Ruwais.
We are committed to continual development in waste
management practices within our concession area. The
amount of non-hazardous waste was reduced from 49
MT in 2010 to 26 MT in 2011 due to waste minimization
practices. A paper recycling initiative was in progress
throughout 2011, which resulted in recycling of 6 MTof paper.

35

Annual Sustainability Report 2011

The following graphs show the various quantities of waste
generated throughout the year.

2

19

12,0008,568

Food Cans

2011

Foam

9,000

2010

Glass Bottles

The following table demonstrates the waste management methods employed at ADOC for 2011.

11,572

6,000

79

3,000

Waste Type1

Food Cans, Glass Bottles, Glass
Sheets2

Generation ofKitchen/ Food Waste, Office Waste Incinerated at Mubarraz
potentially toxic(Paper & Cardboard), PET Bottles Island
residual ash

3Batteries, Tube Lights, Grit Blast&Swarf, Waste Cooking Oil, Tri
Ethylene Glycol (TEG), Asphaltine, BeAAT
Waste Oil, Empty Paint Cans,
Hydrocarbon Sludge

0
Hydrocarbon Sludge

Non Hazardous Waste Generation, 2011 (in %)Hydrocarbon Sludge Disposed to BeAAT (in Drums)
for 2010 - 2011

2.86

450
0.01
0.01

3.56

4.03

2.06

0.83

2010

350

0.50
1.23

2011

284.0

300

0.14
0.79

230

250
200
150
83.41

100

Waste Oil

Used Filter
Elements

Empty Chemical &Paint Buckets

Insulation/ Lagging(Non - Asbestos)Petroleum Hydrocarbon
Sludge (Routine)

Tube Lights

Asbestos

Incinerator Ash

Hazardous Waste Generation, 2011 (in %)

800

4

7

28

SolutionsNone

3rd Party Waste Management Contractor
Residual ash to BeAAT as Hazardous
Waste

None

-

Biodiversity

The preservation of the biodiversity of our natural environment is one of our top priorities. We consider it as a hugepart of our social corporate responsibility to take care of our surrounding environment. We have notable biodiversity
preservation initiatives that will be presented in this section: Mangrove Plantation, Preservation of Osprey, Greening
Campaign, Preservation of Coral, and Sea Grass Transplantation. These initiatives have been actively conducted
for many years, with particular emphasis over the past few years, and have resulted in significant benefits to ourenvironment.
Operational Site Near
Protected Area

Geographic
Location

Position in Relation toProtected Areas

Type of
Operational

Size of Operational
Area (km2)

Biodiversity
Value

Mubarraz Island

Arabian Sea

Marawah Marine
Protected area

Exploration &Production

569

1

5 2

4

Battery

Laboratory Chemicals
Developer of RT Film)

8

Grit Blast &Swarf

Chemically Contaminated
Drums

0

Tube Lights

Batteries

30

Battery
Electrolyte

Waste Crude Oil

00Ethylene
GlycolGrit Blast & Swarf

Waste OilContaminated PPE, Cleaning
Rags and Adsorbents

Empty
Paint Cans

PHC Sludge from
Sand Pool

Asphaltine

28 40

50
Asphaltine

Related Issues

400.0

400

0.06
0.40 0.04
0.06

432

Current Method of
Disposal
Transportation to
ESNAAD and disposal
by ESNAAD#

Other Hazardous Wastes Generation Comparison
for 2010 - 2011

Number of IUCN red list species and Abu Dhabi conservation list species with habitats affected by operations, by
1level of extinction risk
Initiatives: Investigation, implementation and monitoring projects (Mangrove Plantation Project, Sea grass Propagation Project, Coral
Preservation Project, Breeding and Monitoring of Ospreys) leading to the conservation and protection of species and ecosystems
within ADOC’s concession areas.

748
2010

700

2011

600
420.0

500
400
300

176

200

88.0

100

0

1

20

0

0

Food Cans

Glass Bottles Glass Sheet

Empty A/C
Gas
Cylinders

Biodiversity andpreservation of our
natural environment is
one of our top priorities

Non Hazardous Waste Disposed to ESNAAD for 2010 - 201136

37

Annual Sustainability Report 2011

Mangrove Plantation

We understand the environmental importance ofmangrove forests which provide shoreline protection,
maintain the water quality, filter pollutants and control
erosion. We began mangrove plantation in Mubarraz
Island and ARST Areas in 1983. We have expanded
the scale of the plantation over the years and began thesecond phase of plantation in 2005.
Year
2005
2006
2007
2008
2009
2010
2011
2012 (Plan)

Preservation of Osprey“We call for cooperation in the protection of the Emirate’s
islands from any form of disturbance, particularly west of
Abu Dhabi, as most of the breeding ospreys were recorded
on islands..... By maintaining healthy breeding numbers ofOspreys, it will support Abu Dhabi’s ventures into naturebased tourism,” Majid Al Mansouri, Secretary General ofEnvironmental Agency Abu Dhabi (EAD).

Number of Plants
7,330
13,15014,665
13,40013,00065,206111,31075,000An investigation of Mangrove vegetation was carried out
with a Japanese specialist in September 2011. A steady
growth has been observed in the mangrove coverage due
to proper planning, installation of a nursery, site selection,and site preparation. Additionally, we have put in place
continuous surveillance, use of protection measures,and monitoring, using modern technologies. The way
forward for plantation and further monitoring methods iscurrently being assessed; in general, however, we plan
on planting an additional 75,000 mangroves in 2012.
Furthermore, we are planning on undertaking studies
and implementing initiatives to guide the growth andpreservation of vegetation and mangrove plantation. The
pictures below demonstrate the success of our mangrove
planting initiatives.

Greening Campaign

Wild plants grow naturally in the typically dry, highly
saline environment of the coastal areas and islandsof Abu Dhabi. Therefore, in our understanding of theimportance of these indigenous species for the local
ecology, ADOC has been carrying out research for the
purpose of greening the islands through the ‘Greening
Campaign of Wild Plants’. This initiative started in 2007,
and a preliminary study commenced in 2009 in which
the seeding and monitoring of wild plants including
Halopeplisperfoliata, Zygophyllummandavillei, Anabasis
setifera, and Bienertiacycloptera took place. The images
below show the growth of wild plants on the islands. We
intend to continue with this initiative and grow sproutsin the examination garden, which is located near ourmangrove nursery. Once the sprouts are stable andstrong, they will be transplanted in other locations as
dictated by the Greening Campaign.

Sea Grass Transplantation

In order to create a suitable ecosystem for Dugongs
and other important species observed in the vicinity of
Mubarraz Island, we started experimenting with options
for sea grass transplantation in 2007. In Phase I, after the
initial investigation on Mubarraz shoal, we commenced
an experiment on sea grass transplantation using the‘Mattress’ and ‘Root Division’ methods in Phase II. After
rigorous study and careful deliberation, in July 2008, it wasobserved that the success rate of the ‘Mattress’ method
was comparatively higher than that of the ‘Root Division’
method. Accordingly, in Phase III, we finally opted forthe ‘Mattress’ method and started the transplantation ofsea grass. Subsequent monitoring undertaken in June
2009, January 2010 and June 2010 confirmed that thetransplanted sea grass had successfully taken root.
By June 2011, we had carried out preparation for thetransplantation of sea grass involving the installation of
125 mattresses, which will be transplanted in 2012.
The images below demonstrate the success of the sea
grass transplantation initiatives.

The Osprey is an important UAE indigenous species
whose survival is nationally threatened. To strengthen
the efforts of the EAD, we have taken proactive
initiatives towards Osprey preservation since 2004 andplaced appropriately designed artificial nests in several
places of Mubarraz and West Mubarraz Islands. Out of
the 30 artificial nesting platforms currently installed in
the UAE, 17 were installed by us (56.6%) and provide
a home to 26 Ospreys indicating a slight but steadyincrease since 2008. The effort was further backed byclose observation and around-the-clock monitoring.
The table below outlines the distribution (location &number) of Ospreys on our islands.
Number of Ospreys
Block
No.
1
2
3
4
5
6
7
8
9
10
11
Yearly

38

Year

Year

Year

Year

2008

2009

2010

2011

Min Max Avg Min Max Avg Min Max Avg Min Max Avg

0
0
0
0
0
0
0
0
0
1
0

9
3
4
4
2
5
5
7
5
7
4
19

4.4
1.6
1.6
1.4
0.6
1.6
1.9
2.1
1.2
3.2
1.6

1
0
0
0
0
0
0
0
0
0
0

10
6
6
4
3
3
5
6
7
7
5
24

4.9
1.8
1.8
2.2
0.8
1.5
2.2
2.5
1.3
3.4
1.6

1
0
0
0
0
0
0
0
0
0
0

9
4
3
4
5
6
4
6
5
5
4
26

5.1 1
9 5.2
2.1 1
6 2.7
1.7 0
5 1.4
2.3 2.2 5 2.2
1.1 1.3 6 1.3
1.7 0
4 1.3
1.9 0
4 2.0
2.8 0 10 3.3
1.7 0
6 2.0
3.0 0
5 2.4
1.9 0
5 2.1
26

39

Annual Sustainability Report 2011

Preservation and Propagation of Coral

In Abu Dhabi, the results of a three-year study by the
Emirates Wildlife Society, World Wide Fund for Natureand the Environment Agency-Abu Dhabi (EAD), released
in 2009 indicated that 65% of Abu Dhabi’s coral werealready lost, due to natural and man-made causes.
Since artificial reefs had been increasingly promoted as ameans to mitigate environmental impacts and to enhance
fisheries yield, we began investigating the possibility of
propagating coral at Mubarraz in 2004 with substantial
success, as shown below.
•	2004 to
2005:

Marine surveys on coral reef were carried out
and various types of corals were identified
on the northern reef and southwest edge ofthe Mubarraz shoal with Porites Columnaris
being the most abundant species.

• 2006:

We installed artificial fish banks in the
Mubarraz shoal area, which were covered byalgae a year later. At which time, many fish
are found in and around the fish banks.

• June 2010: We carried out transplantation of coralfragments to transplantation bases, whichwere installed in the north, west and south
east areas of Mubarraz Shoal. A total numberof 106 coral fragments were collected andtransplanted to transplantation bases.
10 coral egg settling tools were also installedin the north and west area of Mubarraz
Shoal.
•	December
2010:

Monitoring revealed that 50% of thetransplanted corals showed positive growth.
Some corals have grown to more than 50
times their original transplanted volume, as
recorded in June 2009.

• June 2011:

We transplanted 175 pieces of coral fragments
onto artificial bases, including cuttings takenfrom previously transplanted and thriving
fragments, due to the loss of some fragments
as a result of high current and failure to
thrive.

•	May 2007 & The application of artificial rock for coralMay 2008: reef propagation was investigated and,
consequently, a total number of 40 artificial
rocks were installed at the northern edgeof the Mubarraz shoal at a depth of 2m toavoid the high surface temperatures of theseawater, which is detrimental to the growthof coral.
After evaluating the suitability of artificial rock,another 40 artificial rocks were installed.
• June 2009: Together with Japanese experts, we
conducted a fundamental research of corals
in order to determine the way forward for thecoral protection and propagation in Mubarraz
Shoal.
Diving surveys of coral habitats wereconducted at 29 locations (9 areas) on theedge and the inner part of the shoal.
A total number of 17 species of coral wereidentified. 9 clusters of Acropora had been
confirmed in the west area of Mubarraz
Shoal.
Since transplantation of coral fragments
on stable substrata had been identified as
the preferred option for coral protection, we
retrieved the fragments of branched Acropora
and transferred them onto the artificial bases
and natural rock.
Furthermore, coral eggs were placedon settlement devices, which were thentransplanted in an attempt to propagate thecorals by reproduction.

40

41

Annual Sustainability Report 2011

Safetyfirst

Our - Health and Safety Values
Safety Performance

Management of safety issues, not only ensures longterm sustainability, but can also create a competitive
advantage. We strive for the highest standard ofsafety and are committed to a workplace that is freefrom injuries (i.e., zero harm) through the effective
management of risk. While physical health and safety
make up the foundation of our safety model, we believethat for our people to flourish, we also need to take into
account psychological and social needs.

2.5

ADOC
2

2

Contractor

2

1.5
1

1

1

1

1

0.5

We manage safety by:• Implementing the HSEMS expeditiously•	Promoting safety management as an integral part of
all our activities• Reviewing our systems, procedures periodically• Conducting awareness training for our employees
We assess and monitor our safety performance throughseveral parameters as defined in ADNOC CoPs, suchas:
• Number of Fatalities• Lost Time Injuries (LTI)• Lost Time Injury Frequency (LTIF)• Total Recordable Incidents (TRI)• Incident Severity Rate (ISR)• Restricted Work Day Cases (RWDC)• Medical Treatment Cases (MTC)
Improvement targets are reviewed regularly and theprogress is reported quarterly, as well as annually.
Our incident statistics show a reducing trend andwe have taken initiatives to further reduce thelikelihood of our employees being harmed at work.
We recorded no significant safety incidents in 2011,
which was equal to our record achieved in 2010. This
indicates that the implemented system, policy andprocedures are effective and that we are achieving
continuous improvement in this area. The reason fora higher number of exposure hours is that we started
accounting for all contractors from 2011 onwards.
Previously, the data had consisted of only ADOC andone main contractor.

42

0

0

0

0

2005

2006

2007

2008

0

0 0

0 0

2009

2010

2011

Comparison of Lost Time Injury (LTI)
Between 2005-2011
Comparison of Lost Time Injury (LTI)
Between 2005 - 20112005 2006 2007 2008 2009 2010 2011
LTI Total
1
1
2
3
1
0
0
ADOC

Contractor

3.5

3.5
3
2.5
2
1.4

1.5
1

0.6

1.5

0.7

0.6

0.5
0

0

0

0

2005

2006

2007

2008

0

0 0

0 0

2009

2010

2011

Comparison of Lost Time Injury Frequency (LTIF)
Between 2005-2011
Comparison of Lost Time Injury Frequency (LTIF)
Between 2005 - 2011
LTIF Total

2005 2006 2007 2008 2009 2010 2011
0.6
0.6
1.4
5.0
0.7
0
0

43

Annual Sustainability Report 2011

ADOC’s HSE Management System (HSEMS)
80
70

66.3

64.9

Year

2005 2006 2007 2008 2009 2010 2011

60

ADOC [RWDC +M.T.C ]

0

0

0

1

0

0

2

50

Contractor[RWDC + M.T.C]

13

10

14

7

8

4

5

40
30

Safety Initiatives

24.3

24.2

20
10
0

0

0

0

0

2005

2006

2007

2008

4.2

2009

0 0

0 0

2010

2011

Comparison of Incident Severity Rate (ISR)
between 2005-2011
Comparison of Incident Severity Rate (ISR) Between
2005-2011
ISR Total

2005

2006

2007

2008

2009

2010

2011

64.9

24.2

74.8

90.6

4.2

0

0

Comparison of ADOC Safety Performance From2005 - 2011
Year

2005 2006 2007 2008 2009 2010 2011

Exposure Hours(x 106)

1.8

1.9

1.4

1.6

1.8

1.8

3.7

ADOC Fatalities

0

0

0

0

0

0

0

Contractor
Fatalities

0

0

0

0

0

0

0

ADOC Lost Time
Injuries - LTI

0

0

0

1

0

0

0

Contractor Lost
Time Injuries - LTI

1

1

2

2

1

0

0

ADOC LTI
Frequency

0

0

0

3.5

0

0

0

Contractor LTI
Frequency

0.6

0.6

1.4

1.6

0.7

0

0

2

0

0

1

0

0

0

ADOC Total
Recordable
Incidents - TRI
Contractor Total
Recordable
Incidents - TRI
ADOC Incident
Severity Rate ISR
Contractor
Incident Severity
Rate - ISR

44Comparison of ADOC Safety Performance From2005 - 2011

Contractor

ADOC

74.8

2

2

10

2

1

4

0

0

0

0

24.3

0

0

0

64.9 24.2 74.8 66.3

4.2

0

0

Shifting our focus from a reactive to a proactive approachin safety (e.g., checks and tests to ensure that all
equipment remains in good condition), has yielded apositive trend in the maintenance of our safety-criticalequipment. Furthermore, our workforce has beenencouraged to become more proactive through thereporting of incidents, and has continued to grow in its
understanding and awareness of process safety. These
initiatives have brought about a real improvement inour process safety culture. We also recognize that
contractor management is an important aspect of safety
performance. A comprehensive prequalification process,incorporating our HSE policies and management
systems, is conducted prior to the engagement of any
contractor. Regular review meetings are then held toassess all contractors’ HSE performance, activity levels,
forecasting, quality, planning, and reliability.

Safety Targets for 2012

We have continued to engage with our contractors,
emphasizing on the importance of safety performance,
and are currently undertaking an extensive review
of our contractor’s HSE management system. This
analysis will help us to identify the existing gaps intheir system. This will include clarifying guidelines anddeveloping additional tools to assist with our contractors’
management processes. This system will be implemented
in 2012, including further training for those responsible
for managing our contractors’ safety performance.
As an independent operator of offshore oil fields
engaged in exploration and upstream production, ourvalued employees are regularly exposed to the site
constraints. Therefore, sustaining an outstanding
safety performance remains as an incessant challenge
for the organization. We will continue striving to meetthis challenge in the years to come. With our culture ofcontinuous improvement, we are convinced that we willachieve further notable success in the areas of safety.

We had developed and established the HSE Management
System (HSEMS) during the year 2008, in accordancewith the ADNOC CoP. The HSEMS documentation
incorporates the following:• Apex Manual• General System procedures• Other documents related to HSE
ADOC’s HSEMS objectives are to:•	Prevent incidents, eliminate or reduce hazards andimprove HSE performance at operational sites• Ensure compliance with legislative requirements• Provide a platform for continuous improvement

1. Policy and Planning
The ‘Plan’ phase of the PDCA Cycle process consistsof:• Our HSE policy• Identification of the health and safety hazards• Identification of environmental aspects•	Evaluation of control measures and the assessmentof risk• Compliance with legal and other requirements•	Setting HSE improvement objectives, targets, andmanagement programs

To achieve these objectives, the management systemcovers the following:•	All areas and operational aspects at the locations
that have the potential to affect the health and safetyof people or the environment•	All relevant legislation and other requirements•	All elements of HSE management
The HSEMS strategy focuses on balancing businessinterests with HSE stewardship in compliance with
ADNOC’s corporate objectives. Our HSEMS is applied
across all activities to enable us to achieve HSE
objectives in every area
Our HSEMS framework follows the Plan-Do-CheckAct (PDCA) Cycle of Continual Improvement, indicatedbelow. The management system involves a risk-based
approach that enables us to meet our responsibilities
and commitments to employees, clients and otherstakeholders, including regulatory authorities.

Act

Copy of our HSE Policy – May 2011

Our HSE policy forms the core of the company’s strategic
objectives, which are developed in line with the HSE
Policy commitments. The department level targets and
KPIs are also based on these commitments.

Plan

GM

DP

HSEMS

Do

PT

HR

AD
FA

Continual Improvement / PDCA Cycle

PM

ADOC
HSE
PolicySE

CheckTargetsfor
Departments

Strategic
Objectives

GL

Conceptual Representation of ADOC’s HSE Policy andStrategic Objectives

45

Annual Sustainability Report 2011

2. Implementation and Operation
The ‘Do’ phase of the PDCA Cycle process consists of:•	Setting an organizational structure and assigningroles• Ensuring HSE awareness and competence• Managing HSE communications•	Promoting participation and consultation of personnel
in HSE matters• Documenting the HSEMS procedures/plans• Establishing document control processes• Implementing operational control processes• Preparing for emergencies and response actions
3. Checking and Corrective Action
The ‘Check’ phase of the PDCA Cycle process consistsof:• Monitoring and measuring HSE performance• Investigating incidents and learning from them
• Performing audits of the HSEMS• Tracking corrective actions• Keeping appropriate records
4. Management Review
The ‘Act’ phase of the PDCA Cycle process consists of:• Reviewing HSE performance• Reviewing priorities and objectives• Evaluating the suitability of HSEMS• Allocating appropriate resources• Identifying HSE improvement opportunities

HSE Committee

In order to implement, and assess all aspects of HSEMS,
we have set up the HSE Committee, which is responsiblefor:•	Enforcing the Codes of Practice (Co-P) proposed by
ADNOC to cover all aspects of HSE activities•	Carrying out a survey of the possible impact ofbusiness projects, including existing facilities• Participation in HSEMS – related workshops•	Formulating HSE education and training programs•	Conducting HSE patrols that are designed to enhance
onsite HSE management• Carrying out emergency drills•	Submitting applications in the ADNOC Annual HSEAward program, which recognises outstandingachievements in HSE activities
We are committed to actively carrying out HSE activities,
to improving industrial safety and health policies,

practices and environmental protection. We havedeveloped detailed standards in the HSEMS and havebeen conducting a formal review of the system throughmonitoring and auditing. To assess the HSE status
and progress against the targets, the HSE Committee
meetings are held once every four months.

In 2011, a percentage break-down of the audit findings(gaps) was carried out. The following pie chart provides
the percentage break down of the gaps, which have been
divided into HSEMS categories.
Overall Audit Findings (Gaps) in %Statistics on ADOC’s Internal HSEMS
Audits9.8

Our HSE Committee conducts regular audits in order to
identify any non-compliance, requiring immediate action
and rectification. The following bar chart provides acomparison of the risk classified audit findings from 2009
to 2011.
High Medium Potential

High Potential

91
79

75

3.5
1.4

13.5

25.8

27.1

18.9

Medium Potential

96

100

The largest gap percentage was found in ‘Organization,
Resources and Competence’. We will effectively work
towards reducing and eventually eliminating this gap.
We have developed a detailed action plan that will be
implemented to close off all gaps in the near future.

Leadership andCommitment

Organization, Resources,
and Competence

Planning, Standards,
and Procedures

Audit

Policy & Strategic
Objectives

Risk Evaluation andManagement

Implementation andMonitoring

Management
Review

75
49
50

44

33
23

25
0

11

2009

2010

2011

Comparison of the risk classified audit findings
between 2009-2011

As shown in the chart above, the ‘High’ and ‘High
Medium’ risk potentials are decreasing whereas the‘Medium’ potential is increasing. This shows a continuous
improvement in our company’s compliance with the
HSEMS requirements.
The following table shows a comparison between therisks classified audit findings between years 2009 and2011.
Comparison of the Risk Classified Audit Findings

Total Audit Gaps

2009

2010

2011

204

151

142

As shown in the table above, the number of risk classified
audit findings has been decreasing between 2009 and2011. This is evidence of our effective efforts to improve
our operations and close off more gaps each year.
ADOC’s 7th Internal Audit Closing Meeting46

47

Annual Sustainability Report 2011

Case Studies
CASE STUDY 1:

CASE STUDY 2:

CASE STUDY 3:

CASE STUDY 4:

Energy Management Initiatives at ADOC

Zero Flaring Policy

Waste Water Management

Waste Management

Energy efficiency and management of energy is one ofour main performance measurement areas. Therefore
we strive to minimize energy intensity in our operations
in order to reduce our carbon footprint and to utilize goodbusiness sense in optimizing resource consumption.

We are fully committed to a Zero Flaring Policy at ouroperational sites and strive to improve the ambient air
quality. We have been successful in maintaining flaring
at low levels and achieved a 14% reduction in 2011
compared to 2009. The continuous implementation of
the Sour Gas Injection Project (SGIP) and the Zero
Flaring Project (ZFP) has resulted in Zero Flaring at
Mubarraz Field and minimized flaring at Mubarraz
Island.

All produced water is monitored periodically and reinjected into deep wells. ADOC re-uses effluent fromthe Sewage Treatment Plant (STP) at Mubarraz Island
for irrigation purposes in conformity with ADNOC
discharge limits. Effluent from the Sewage Treatment
Plant (STP) at the Central Facilities Platform (CFP) is
discharged to the sea in conformance with MARPOL
73/78 requirements.

ADOC manages its waste in conformance with
ADNOC CoP on Waste Management according to
the Abu Dhabi and UAE Federal Regulations. ADOC
segregates its waste and strives to apply the 3R
Principle (Reduce, Reuse and Recycle) whereverapplicable. ADOC ensures that all Hazardous Wastes
are properly managed and disposed of to BeAAT(Central Environmental Protection Facilities Project),Ruwais.

We have been using Energy Management Initiatives(EMI) since 2009. This demonstrates our serious
commitment to sustainable resource consumption.
The progression of EMIs adopted at ADOC issummarized below:•	Year 2009 – ADNOC conducted an energy
management survey in all OPCOs for the “Strategic
Study on Energy Management”•	Year
2010
–
ADNOC
distributed
therecommendations to all OPCOs based on theprevious year’s study.
•	Year 2010 – We formed an Energy Management
Team.
•	Year 2010 – We made short-term, medium-term,
and long-term plans based on the study findings
and submitted them to ADNOC.
•	Year 2012 – We are planning to reorganize theEnergy Management Team and hold its kick-off
meeting in the second quarter of 2012.

48

In 2010, we hosted the Mobile Air Monitoring Station
for the ADNOC AQMS Project. The data collected fromthe unit has been a valuable source of information withrespect to the ambient air quality at Mubarraz Island forthe past two years.

ADOC recycled 6 MT in 2011, in accordance with the
3R Principle.

We are committed to playing a proactive role in
reducing air emissions and will be seeking innovative
ways to identify further initiatives to reduce Flare Gas
Emissions.

49

Annual Sustainability Report 2011

Our Awards and Achievements
ADOC continually and actively strives to achieve
the highest standards in our Operational, Social andEnvironmental activities, through our commitment tosustainability. As a result, we have been granted anumber of awards in the year 2011.

The HSE Award was received in special recognition forthe ‘Regeneration and Cultivation of Mubarraz Island
Marine Eco-System’.

Abu Dhabi Industry Award (InAppreciation of Sponsorship)

On 24th May 2011, we were granted the ‘Abu Dhabi
Industry Award’ by the Higher Colleges of Technology,
which is awarded to organizations and companies foroutstanding commitment to education in Abu Dhabi.

Regeneration of Corals at Mubarraz Island, 2011

ADNOC’s HSE Award 2000 to 2011

Our HSE activities are recognized and highly regarded by
ADNOC and its Group of Companies. Up to now, we havereceived various awards, as listed in the table below.
Abu Dhabi Industry Award 2011

ADNOC’s HSE Awards

One of the most recent awards we have received is the2011 ADNOC Annual HSE Award. ADNOC’s Annual HSEAwards program is designed to recognize outstandingachievement by the employees and affiliated contractorsof the ADNOC Group of Companies in the areas of
Health, Safety and Environment. The Award recognizes
tangible evidence of ADOC’s commitment to HSE and isa key element in the on-going initiative to promote HSEamong the company, employees and contractors.

Year

ADOC’s HSE Awards

2000

The Supreme Winner of the 2000 HSE Award for our‘Sour Gas Injection Project’2002

The Runner-up in the Environment category for the‘Implementation of Tank Gas Recovery Project’

The Runner-up in the Health category for ‘Improvement
2003 of the Working Environment inside Process Vessels,(Spot Cooler)’
2004

The Winner in the Health category for ‘Prevention of
Heat Stress’.

Special Recognition Award in the Health category for2005 ‘Management of Asbestos for Reducing Occupational
Health Risks’
1. Special Recognition Award for ‘Safe Method for Gas
Turbine Compressor Washing’
2006

2007

2. Group Company & Contractor Partnership Awards
for the ‘Installation of an Artificial Fish Bank’ incooperation with ASAHI KASEI Marintech Co.
The Runner-Up in Safety for ‘Setting Cement Retainer
by CT Setting Tool during Rig Operations’

The Winner in the Environment category for the2008 ‘Installation of Solar Panels’ at ADOC Abu Dhabi
office.
2011

A Special Recognition Award for ‘Regeneration andCultivation of Mubarraz Island Marine Eco-System’

ADNOC’s HSE Awards – ADOC’s Team for 201150

51

Annual Sustainability Report 2011

Acronyms and AbbreviationsAD
ADESCO

Administration Department

KPIs

Key Performance Indicators

Abu Dhabi Emergency Support Committee
for Offshore Operations

km

Kilometers

KW

Kilowatts

KWH

Kilowatt hours

LTI

Lost Time Injury

LTIF

Lost Time Injury Frequency

m3

Cubic meters

MARPOL

Marine Pollution

MOCO

Mubarraz Oil Company, Limited

ADMA-OPCO Abu Dhabi Marine Operating Company
ADOC

Abu Dhabi Oil Company, Limited- Japan

ADNOC

Abu Dhabi National Oil Company

ADSG

Abu Dhabi Sustainability GroupAED

United Arab Emirates Dirham

AIMS

Assets Integrity Management System

API

American Petroleum InstituteAR

Umm Al Anbar

ARST

Umm Al Anbar Site Terminal

ATS

Action Tracking System

CBT

Competency Based Training

CCR

CFP Control Room

CFP

Central Facilities Platform

CO2

Metric tonnes

MTC

Medical Treatment Cases

NFPA

National Fire Protection Association

NOx

Nitrogen Oxides

OGP

Oil and Gas Producers Association

OHRMS

Occupational Health Risk Management
SystemCarbon Dioxide

PDCA

Plan-Do-Check-Act

CoPs

Codes of Practice

PM

Processing and Maintenance Department

CSR

Corporate Social Responsibility

PT

Purchasing and Transport Department

DP

Development Department

PTW

Permit to Work

EAD

Environment Agency - Abu Dhabi

QRA

Quantitative Risk Assessment

EMI

Energy Management InitiativeRO

Reverse Osmosis

EPA

Environmental Protection Agency

FA

Finance Department

SE

Safety and Environment Department

GA

Neewat Al Ghalan

SGIP

Sour Gas Injection Project

GL

Government and Local Relations Department

SOX

Sulfur Oxides

GJ

Gega Joules

SPC

Supreme Petroleum Council

GRI

Global Reporting Initiative

STP

Sewage Treatment Plant

GWP

Global Warming Potential

SWAC

Social Welfare Activities Committee

HCT

Higher College of Technology

TCM

Technical Committee MeetingHR

Human Resources and Development Department

TRI

Total Recordable Incidents

H 2S

Hydrogen Sulfide

UAE

United Arab Emirates

HSE

Health Safety and Environment

USD

United Stated Dollar

USEPA

United States Environmental Protection
AgencyVOC

Volatile Organic Compound

YR

Year

ZFP

Zero Flaring Project

HSEIA
HSEMS

52

MT

Health Safety and Environmental Impact Assessment
Health Safety and Environment Management
SystemISR

Incident Severity Rate

JNOC

Japan National Oil Corporation

RWDC

Restricted Workday Cases

53

Annual Sustainability Report 2011

GRI Index Checklist
Page Number

Description

Standard Disclosures

Profile Disclosures
8 - 11Strategy and Analysis

1.1-1.2

10, 11, 13, 15, 17 - 19 Organizational Profile

2.1-2.10

8 - 9, 54-55
21 - 22

Report Parameters3.1-3.13

Governance, Commitments, and Engagement

4.1-4.17

Page Number

Economic
9

Coverage of the organization’s defined benefit plan obligations

EC3

Significant financial assistance received from government

EC4

23

Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation

EC629 - 30Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or pro bono
engagement

EC8

21 - 22

Environmental

Total number and volume of significant spills

EN23

35 - 37

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VII,and percentage of transported waste shipped internationallyEN24

37 - 40

Identify size, protected status, and biodiversity value of water bodies
and related habitats significantly affected by the reporting organization’sdischarges of water and runoff

EN25

35

Significant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting
members of the workforce

EN29

23

Total environmental protection expenditures and investments by type

EN30

24

Total workforce by employment type, employment contract and region

LA1

24

Total number and rate of employee turnover by age group, gender and region

LA2

Rates of injury, occupational diseases, lost days, and absenteeism, andnumber of work-related fatalities by region

LA7

27

Education, training, counselling, prevention, and risk-control programs in place
to assist workforce members, their families, or community members regarding
serious diseases

LA8

25

Average hours of training per year per employee by employee category

LA10

25

Programs for skills management and lifelong learning that support thecontinued employability of employees that assist them in managing career
endings

LA11

25

Percentage of employees receiving regular performance and careerdevelopment reviews

LA12

43 - 44

Materials used by weight or volume

EN1

33

Percentage of materials used that are recycled input materials

EN2

33

Direct energy consumption by primary energy source

EN3

33

Indirect energy consumption by primary source

EN4

34

Energy saved due to conservation and efficiency improvements

EN5

34

Initiatives to provide energy-efficient or renewable energy based products andservices, and reductions in energy requirements as a result of these initiatives

EN6

Initiatives to reduce indirect energy and reductions achieved

EN7

34

Total water withdrawal by source

EN8

34

Water sources significantly affected by withdrawal of water

EN9

34

Percentage and total volume of water recycled and reused

EN10

Social: Society

37 - 40

Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected areas

EN11

6 - 7, 45 - 47

37 - 40

Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas

EN12

Habitats protected or restored

EN13

37 - 40
37 - 40
37

Strategies, current actions, and future plans for managing impacts on
biodiversity
Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction riskSocial: Human Rights
24

Total number of incidents of discrimination and actions taken

HR4

24

Operations identified as having significant risk for incidents or forced
compulsory labour, and measures to contribute to the elimination of forced
compulsory labour

HR7

Prevention and mitigation measures implemented in operations with significant
potential or actual negative impacts on local communities

SO10

Social: Product Responsibility

EN14
EN15

34

Initiatives to reduce greenhouse gas emissions and reductions achieved

EN18

34

Emissions of ozone-depleting substances by weight

EN19

NOx, SOx, and other significant air emissions by type and weight

EN20

34 - 35

54

Social: Labour Practices and Decent Work33

34, 48

Standard Disclosures

34 - 35Disclosure on Management Approaches
Performance Indicators

Description

46 - 47

Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during
their lifecycle, by types of outcomesPR2

37 - 40

Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and service information and labelling, by type ofoutcomes

PR4

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction

PR5

Programs for adherence to laws, standards, and voluntary codes related tomarketing, communications, including advertising, promotion and sponsorshipPR6

2230, 45 - 47

55