Health & Community – Dragon Oil

Health & Safety

Risks and challenges are part of our every working day. We not only work with hydrocarbons, we do so in some of the harshest of environments: the winter conditions of the Caspian Sea can be particularly demanding.

Safety is therefore a central building block of our culture. We place the highest emphasis on site HSE supervision and safety training. This includes making sure that the necessary personnel protective equipment is fit for purpose, and worn, in every required situation.

As we pursue an ambitious and expanded programme of exploration and production, the safety culture we have instilled so far will serve us well as we scale it up to meet the demands of the future, with zero compromise. With this in mind, the Group has continued to increase the manpower and resources of our HSE function in order to strengthen supervision and control over the key activities of production, drilling, logistics, marine and others.

In the second quarter of 2012, we achieved the ISO 9001 (Quality management systems), ISO 14001 (Environment) and OHSAS 18001 (Occupational Health and Safety standard) certification.

HSE indicators

Health, Safety and Environment Performance Indicators

Key Performance indicators	2014	2013	2012	2011	2010	2009
Fatalities	0	0	0	0	0	0
Major Catastrophic incidents	0	0	0	0	0	0
Major environmental incidents	0	0	0	0	0	0
Lost time incidents	5	6	6	3	2	4
Total hours worked (million)	12.4	5.8	6.1	5.7	5.2	4.5
Lost time incident frequency	0.60	1.22	1.26	1.30	1.46	1.64

NOTE

Lost Time Incident is any work-related injury or illness that prevents an employee from working on any
subsequent scheduled workday or shift.

Lost Time Incident Frequency is the number of Lost Time Incidents cumulative since 2000 divided by
the total number of hours worked cumulative since 2000, multiplied

The LTIF calculation is now based on an industry standard of a five-year rolling average. The significant
increase in man-hours is due to the fact that we now include all project contractors’ man-hours in line
with reporting an aggregated lost time incidents statistic for our employees and contractors.
Total hours worked and LTIF for 2010-13 have not been adjusted.

HSE Policy

ISO 9001, 14001 & OHSAS 18001 certification

Dragon Oil is committed to continual HSE improvement in its operations through active participation of our employees, contractors and the community. It shall take all reasonable measures at its disposal to protect the health and safety of its personnel as well as to protect the environment in which it operates.

The Company firmly believes that sound HSE performance is key to ensuring sustainable business and shall thus be considered as integral part in business decision making process.

As its policy objectives, Dragon Oil shall, as a minimum:

Observe and comply with all HSE statutory requirements within our area of operations;
Mitigate the consequences of all types of incidents/accidents having potential harmful effect on personnel, assets and/or the environment;
Use commonly accepted levels of good oilfield HSE practice; and
Establish transparent HSE performance criteria and communicate them constructively internally and to interested parties.
To achieve the aforementioned defined objectives, Dragon Oil shall:
Develop and maintain an appropriate HSE Management System;
Hold all levels of management, staff and contractors accountable for HSE within their areas of responsibility;
Develop a positive HSE culture throughout the company through effective communication and training;
Conduct HSE reviews and audits in order to identify shortcomings within the organisation and ensure compliance with local, international and corporate standards and regulations;
Ensure that contractors demonstrate full compliance with this policy; and
Develop and implement a Risk Assessment-based approach in conducting business operations.
In addition, Dragon Oil shall:
Establish good relations with local communities based on constructive mutual dialogue with regulators, community representatives, local authorities as well as other concerned parties on HSE and security matters of common interest;
Ensure optimal security standards are maintained to protect personnel, company assets and information; and
This policy shall be reviewed periodically to ensure continual improvement.

ISO Certification

ISO 9001, 14001 & OHSAS 18001 certification

The Group has recently achieved ISO 9001, 14001 & OHSAS 18001 certification. ISO 14001 is a standard for the environmental management of the elements of the Integrated Management System. It provides a framework for conducting business in an environmentally responsible manner.

The main criteria or requirements of the ISO 14001 and OHSAS 18001 certifications that we have complied with are summarized below.

The Group must:

Ensure that the organisation has solid grounds of leadership and that HSE accountabilities and responsibilities are well defined and communicated to individuals;
Verify and ensure that the Company possess adequate and industry-aligned HSE Management System (HSEMS);
Ensure that the key HSE Policies/Procedures pertaining to our business/operations are in place and are aligned with international HSE standards;
Have sound HSE documentation management system in place, in common with industry requirements;
Ensure that all Company personnel across the organisation have access to HSE Documentation, are aware of HSEMS and HSE procedures and policies; and maintain evidence of compliance;
Ensure that the Company’s HSE policies and processes are complied with both at corporate management level in Dubai, UAE and at principal affiliate level in Turkmenistan;
Verify Risk Management criteria for the business throughout operations via ensuring that all hazards associated with operations are identified and assessed; systematic Risk Assessment workshops are conducted on operations;
Ensure that Company conducts systematic and regular reviews/audits of the management system and work processes in structured and traceable manner; and
Ensure availability of HSE resources to facilitate implementation of the requirements of the HSEMS.

Dragon Oil has established and implemented Quality Management System complying with ISO9001:2008 requirements ensuring that the organisation has centralised, uniform and consistent system at all locations. This system has been assessed by accreditation body Bureau Veritas and certified as ISO9001:2008 organisation. Accordingly, this has resulted in higher customer satisfaction, interdepartmental communications, work processes, customer/supplier partnerships. We have implemented a lessons-learnt programme as a means for continual improvement of the System and processes thus meeting all business objectives and strategies in effective manner.

Year	Period	Dividend per share, US cents	Dividend per share, GB pence	Dividend per share, Euro cents	Announcement date	Ex-dividend date	Record date	Payment date
2014	Final	16	10.9	15.1	17/02/2015	02/04/2015	07/04/2015	30/04/2015
2014	Interim	20	12.0	15.1	05/08/2014	13/08/2014	15/08/2014	15/09/2014
2013	Final	18	10.7	13.0	18/02/2014	02/04/2014	04/04/2014	01/05/2014
2013	Interim	15	9.7	11.3	06/08/2013	14/08/2013	16/08/2013	16/09/2013
2012	Final	15	9.8	11.4	12/02/2013	03/04/2013	05/04/2013	03/05/2013
2012	Interim	15	9.4	11.9	14/08/2012	22/08/2012	24/08/2012	20/09/2012
2011	Final	11	6.9	8.4	21/02/2012	28/03/2012	30/03/2012	27/04/2012
2011	Interim	9	5.7	6.6	10/08/2011	17/08/2011	19/08/2011	23/09/2011
2010	Full-year	14	8.6	9.9	22/02/2011	27/04/2011	03/05/2011	03/05/2011

Health & Safety

HSE indicators

Health, Safety and Environment Performance Indicators

HSE Policy

ISO 9001, 14001 & OHSAS 18001 certification

ISO Certification

ISO 9001, 14001 & OHSAS 18001 certification

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