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Responsibility

Faroe Petroleum is committed to high standards of environmental health and safety performance across all aspects of its business activities.

responsibility

Overview

The health and safety of people, the protection of the environment and compliance with all applicable legal and internal requirements, as well as industry best practice, are critical to the overall success of the Group. The Faroe Business Management System (BMS) provides both the framework and mechanism for setting, monitoring and measuring suitable environmental, health and safety (EHS) objectives as well as ensuring their continual improvement.

Providing a safe working environment for all of our staff is a core value and business priority. Safe and sustainable performance is monitored and reported regularly to the Board of Directors, which ensures that the necessary resources are provided to support EHS activities.

The Business Management System

The BMS is consistent with the internationally recognised requirements for Quality, Health, Safety and Environmental management (e.g. ISO 9001, HS (G) 65, OHSAS 18001 and ISO 14001).   The BMS has been successfully verified for compliance with the OSPAR Recommendation 2003/5 (based on ISO 14001:2015) for Environmental Management for over three years. The third party independent OSPAR audit covers the scope of our UK assets although the BMS is applied in the same way across all of our operations. For Norwegian operations, aspects of the BMS are audited regularly by licence partners as well as by the petroleum safety and environmental authorities. The BMS policies, processes and procedures are applied to all operated drilling and production activities and are used in planning and decision making throughout the project life cycle from acquisition of licences through to decommissioning.

The BMS is based upon a goal setting philosophy rather than a regimented and prescriptive approach to operations and business activity. It sets broad EHS expectations and provides a management framework for achieving goals in a systematic way, but allows sufficient flexibility to achieve this in a manner which best suits the business.

Safety performance

Over the last reporting period to 31 December 2017 there were no reported breaches by the Group’s staff of the requirements set out in the Personnel Handbook or those laid out in our EHS policy. All required monitoring and measuring activities associated with EHS performance, including scheduled EHS audits, took place as planned in 2017.

The Petroleum Safety Authority (PSA) in Norway is a regulator whose role it is to supervise safety, emergency preparedness and the working environment in Norwegian petroleum activities. The PSA also establishes standards for the petroleum industry which involves developing regulations, controlling companies’ compliance and taking enforcement action. One of its main priorities is to ensure that the managers of companies maintain a strong EHS culture for both operated and non-operated activities. The Group’s Norwegian subsidiary was successfully audited by the PSA in 2014, in 2016 through the process of transfer of operatorship of the operated assets Trym and Oselvar and as part of the consents to drill Brasse in 2016 and 2017. In the same period, the Norwegian Environmental Agency gave consent to discharge permits for Brasse drilling.

The majority of the Group’s activities are undertaken by contractors and other licence operators, operating on Faroe’s behalf. To ensure safe operations and to comply with the regulations, Faroe follows up on contractors and partners through our audit, review and verification activities. These activities are based on risk evaluations. Despite this, whilst drilling wells on the Tambar field (operated by Aker BP) an employee of Maersk Drilling died and another was injured in December 2017 as a result of an accident on the Maersk Interceptor.

The Group will continue its efforts in carrying out the required risk assessments as a basis for decision-making as we see this as the main tool in preventing severe incidents.

In 2017, for operations where Faroe is the licence operator, we achieved our target of zero fatalities and zero Lost Time Injuries (LTIs) across all of our operations having worked a total of 202,348 man-hours during 2016 and 175,759 offshore man hours in 2017 across our assets in the UK and Norway.

The Group’s EHS Policy can be downloaded here and Corporate Major Accident Prevention Policy here

Diversity, equal opportunities and discrimination
As an equal opportunities employer, the Group is committed to increasing the diversity of its workforce. The Group will recruit, employ and develop employees in line with best practice and based on the qualifications, experience and skills required for the work. Notwithstanding that the resources sector has historically been male dominated, at 31 December 2017, 38% of the Group’s employees were female.

Workforce health and wellbeing
The Group is committed to providing a healthy and safe workplace. As part of this commitment, a Working Environment Committee was established in 2017 which meets quarterly to discuss the health, wellbeing and safety of the workforce.

The Group provides private medical cover for employees, which includes counselling for work/life issues such as stress and bereavement. The Group also provides pensions, insurance, income protection benefit and contributes towards gym memberships for employees.

Environment

As stated in the Group EHS Policy, Faroe is committed to respect and preserve the natural environment.

Our policy is to minimise the undesirable effects on the environment resulting from our activities and work to prevent pollution. The Group assesses and manages the risks of its operations in order to improve its environmental performance on a continual basis.

Environmental management is an integral part of the BMS and includes the following activities: environmental permits, identification of main environmental aspects, chemical assessments and substitution plans, environmental reporting, environmental surveys/studies and assessments and oil spill preparedness plans.

Greenhouse gas (GHG) emissions
Faroe, as part of its annual EHS monitoring programme, reports the emissions of GHGs that have been generated as a result of its operated exploration and production activities. These GHG emissions are reported annually to the Norwegian Environment Agency and to BEIS (Department for Business, Energy & Industrial Strategy) in the UK.

The reported GHG emissions in carbon dioxide equivalent (CO2e) includes emissions of carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), all of which are produced during combustion. 2016 forms the base year against which emissions trend over time.

Scope 1 GHG emissions includes subsea tie-backs in Norway, Trym and Oselvar (allocated emissions on host installations Ula and Harald to process Faroe’s production) and Brasse exploration drilling including a well test. For the UK, the numbers include direct emissions from the Schooner and Ketch installations (normally not manned). The numbers provided in the table are the total emissions from these fields.

Scope 1 GHG

emissions (tonnes) 2017 2016
Norway 54,867 71,044
UK 416 557

The total direct GHG emissions (operated and non-operated) during 2016 was 107,573 tonnes (net to Faroe).

Scope 2 GHG indirect emissions comprise those arising from generation of electricity supplied by the national grid and is hence limited to electricity used in the Faroe offices in Norway and the UK. For 2017 this equated to 79 tonnes of GHG.

Environmental releases
Faroe has a target of zero acute discharges to sea.  Any spill, irrespective of size, is recorded and followed up internally and reported as required to authorities.  Chemical spills above 0.1m3 in 2017 and 2016 were as follows:

Chemical spills

> 0.1m3  2017  2016
Norway      –     –
UK     –     1

Our environmental management system ensures that all spills are reported as required to the relevant authorities in the countries in which we operate.  Should a more severe oil spill be caused as a result of our operations, we have oil spill response systems in place through our internal Emergency Response organisation and through membership of Oil Spill Response Limited (OSRL) in the UK  and the Norwegian Association for Oil Spill Response (NOFO) in Norway.   Faroe are represented at the NOFO board and at the board of Operators Emergency Response Organisation (OFFB) in Norway.

Environmental reports submitted to the authorities 2017 can be found at:

Norwegian oil and Gas web pages, links:

Annual report Norway Exploration (ref. section 8 – no unplanned discharge)

Annual report Trym Production (ref. section 8 – no unplanned discharge)

Annual report Oselvar Production (ref. section 8 – no unplanned discharge)

Gov.uk publications, links:

Annual report 2017 UK (ref. section 4.2 – no environmental incidents)

Our ethics

The Group strives to meet the highest standards of integrity and ethics as we undertake our daily activities. To ensure these values are core to the business, they are integrated within the Group’s BMS through policies, procedures, project plans and further embedded with our staff and contractors through training and awareness initiatives.

The key BMS policies and commitments for promoting ethical business conduct are:
– Business Ethics Policy
– Personnel Handbook (UK and Norway)
– Anti Slavery and human trafficking commitment
– Anti-facilitation of Tax Evasion Policy
– Anti Bribery and Corruption Policy
– Whistle Blowing Policy

All policies are reviewed and signed by the Chief Executive which further reinforces our ethos of conducting our business with integrity which is a core principle as we meet the requirements of our strategy. All these policies are available to our staff on the Group intranet and an annual reminder of their existence is circulated to all staff.

The Group operates in some of the most mature oil and gas jurisdictions in the world, the UK and Norway Continental Shelf (UKCS and NCS). This requires the Group to operate to very high regulatory standards for Environmental, Health and Safety legislation. Faroe prides itself on the pro-active and engaging relationships that it has with all stakeholders, in particular those with regulators to promote openness and transparency in all aspects of our operations.

The Group does not support political parties nor contribute to the funds of groups whose activities are calculated to promote partisan party interests.

Human Rights
The Group is fully committed to meeting its responsibilities towards its staff, contractors and third parties who may be impacted by its activities, and to adhere to all applicable national and local legislation as well the principles for business and human rights embodied in international initiatives, such as the United Nations Global Compact and the United Nations Guiding Principles on Business and Human Rights.

Diversity and Equality
Faroe Petroleum is committed to diversity in the workplace ensuring that employees and contractors are treated fairly and equally.
We encourage an inclusive workplace culture that values and utilises the skills and contributions of employees with diverse backgrounds, experiences and perspectives.  We will continue to build a diverse and skilled workforce irrespective of gender, national or ethnic origin, religion, race, age, sexual orientation, gender identity, marital status, physical ability or other personal characteristics.

Business Ethics Policy
The Group is committed to pursue growth for the benefit of its shareholders, employees and other stakeholders. The company will comply with the laws and regulations of the countries in which it operates and will conduct all its activities with honesty, fairness and integrity. Business integrity is a key standard for selection of partners, contractors and other organisations with which the company works.

A link to the Group’s Business Ethics Policy can be found here

Personnel Handbook
The Group’s personnel handbook is issued to all employees as a guide to its policies and procedures and also to the wider environment in which the Group operates. The purpose of the employee handbook is primarily to help new staff settle quickly into the Group by drawing together much of the information needed into one simple guide, which they can consult as required. The handbook covers matters including, intellectual property, absence from work, employment policies and procedures, general rules and information, disciplinary procedure and maternity and parental provisions.

Anti-bribery and corruption
A dedicated Anti Bribery and Corruption (‘ABC’) Policy is in place across the Group which expects the highest standard of behaviour and conduct of its Directors, officers and employees, together with all agents, co-ventures, contractors, suppliers and other third parties acting or purporting to act on its behalf or on behalf of any member of the Group. The ABC Policy sets out the main policies, procedures and mechanisms adopted by the Group following appropriate risk assessment that are intended to prevent and/or effectively combat instances of bribery or corruption in the course of the Group’s business and ensure compliance with applicable anti-bribery and anti-corruption laws in those countries where the Group conducts business.

The Group’s Anti Bribery and Corruption Policy can be downloaded here

ABC performance in 2017
The ABC Policy in tandem with the Whistle Blowing Policy remained fit for purpose during our activities in 2017, but we commit to review and update them in 2018 in accordance with updates to guidance and legislation as well as to assure ourselves that what we have adopted is fit for our ever-evolving company.

Staff and contractors are reminded of the need to be familiar with these requirements, to ensure the high standards are adhered to.

Contractors working for Faroe are treated in the same way as if they were direct employees and must have a high level of business integrity and must commit to the principles of our Anti Bribery and Corruption Policy.

No reports were made under the ABC Policy in 2017 for those working for or on behalf of Faroe.

The Group’s Whistle Blowing Policy can be downloaded here.

Anti-facilitation of Tax Evasion Policy
The Group seeks at all times to act with integrity, honesty and transparency in its tax practices. We are committed to maintaining open and constructive relationships with all tax authorities and we have a policy and procedures in place to avoid tax evasion facilitation.

A copy of our Anti-facilitation of Tax Evasion policy can be downloaded here

Anti-Slavery and Human Trafficking Statement
The Group has a zero tolerance approach to modem slavery and is committed to ensuring that there is no modem slavery or human trafficking in any part of its business, including its supply chain. The Group complies with all requirements of the Modern Slavery Act 2015.

A link to the Group’s supporting statement and measures in place to address the risk of modern slavery can be found here

Operating transparently
The Group operates in such a way that it is easy for others to see what actions are performed as we undertake our business activities. This includes our internal stakeholders, employees, managers, the Board as well as our external stakeholders, which include our regulators, investors, suppliers and the wider community in which we work.

Employees are encouraged to air grievances in accordance with the Grievance Procedure within the employee handbook. No grievances were reported during our business activities in 2017.

Community

Faroe has a process for engaging with its varied stakeholders. Interested parties are assessed as to their requirements in relation to a project, after which they are engaged with according to their significance to the project.

The Group has strong relationships with academia and has invested in a variety of research and development activities within universities in Norway with the aim of benefitting the communities in which we operate. Faroe has also made donations to various charitable causes.

During 2016 and 2017, the Company committed significant amounts to support a number of geological and geophysical studies and projects at the University of Bergen and University of Stavanger. The Company also contributed to the student fund for masters students.

In 2014 and 2017 Faroe organised charity concerts called Rock’n’Oil. Over the two events a total of £90,000 was raised in aid of five charities: RNLI, Princes Trust, Maggies, Place2Be and Momentum.

Faroe has also been one of the sponsors of the new Stavanger Konserthus which was opened in 2012. In 2017 and 2018 Faroe was the main sponsor of the annual Stavanger Marathon.