COMPANY POLICY HEALTH AND SAFETY P P-01 VERSION 1.00
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1 APPROVED BY Rosneft Board of Directors On July 30, 2015 Minutes dated August 03, Effective as of December 30, 2015 By Order dated December 30, COMPANY POLICY HEALTH AND SAFETY P P-01 VERSION 1.00 (with amendments approved by the decision of Board of Directors Meeting (Minutes of the meeting dated ) effective as of by Order 489) MOSCOW 2015
2 TABLE OF CONTENTS TABLE OF CONTENTS GENERAL PROVISIONS... 3 PURPOSE... 3 SCOPE... 3 VALIDITY AND AMENDMENTS HEALTH AND SAFETY POLICY STATEMENT HEALTH AND SAFETY OBJECTIVES HEALTH AND SAFETY PRINCIPLES HEALTH AND SAFETY COMMITMENTS HEALTH AND SAFETY TARGETS HEALTH AND SAFETY SYSTEM AND MANAGEMENT METHODS... 6 All rights to this LRD are reserved by Rosneft. This LRD or any part thereof may not be reproduced, replicated or disseminated without express permission from Rosneft. Rosneft, 2015 PAGE 2 OF 8
3 GENERAL PROVISIONS GENERAL PROVISIONS PURPOSE This Policy represents the position of Company s governance bodies and Management with regard to health and safety, formalizes uniform principles and approaches in this area to ensure continuous improvement of the Company s integrated HSE management system. This Policy was prepared relying on the requirements of applicable legislation, including Russian Government Decree dated On the Approval of Requirements to Document Support for Industrial Safety Management Systems, as well as standard OHSAS and global best health and safety practices. SCOPE This Policy shall be mandatory for all employees of Rosneft and its subsidiaries. This Policy is of advisory nature for the employees of Rosneft s dependent entities. Rosneft shall communicate this Policy to its partners and cooperate with them in accordance with the provisions hereof. The requirements of this Policy shall be subject to compulsory implementation in the subsidiaries and affiliates of Rosneft, as well as in any other entity, in which Rosneft participates directly or indirectly, after they are implemented in the Entity in accordance with its Charter and pursuant to the procedure established in it. Administrative, local normative documents and any other internal documents shall not conflict with this Policy. VALIDITY AND AMENDMENTS This Policy shall be a permanent local normative document. This Policy and amendments hereto shall be approved by decisions of the Board of Directors of Rosneft and put into force by Rosneft s order. Implementation of this Policy shall be performed by a Rosneft senior manager in charge of health and safety, Rosneft senior managers in charge of business streams. The fulfillment of requirements set out in this Policy shall be monitored using the target monitoring system. PAGE 3 OF 8
4 HEALTH AND SAFETY POLICY STATEMENT 1. HEALTH AND SAFETY POLICY STATEMENT The Company, being the leader in oil and gas industry in Russian Federation and one of the largest companies in global fuel and power complex, realizes the nature and scope of impact of its activities, products and services, and understands its responsibility for maintaining of failure-free operation, safe labor conditions for employees and health care for local population residing within the areas of the Company s operations HEALTH AND SAFETY OBJECTIVES In striving to achieve the world s highest health and safety standards, including issues of health, road traffic safety, fire, radiation and well control safety, production facilities integrity, prevention of fire and explosion hazardous and emergency situations and responses thereto (hereinafter health and safety), the Company has set the following strategic objectives: no occupational injuries or diseases; no emergencies or fires HEALTH AND SAFETY PRINCIPLES The Company s health and safety activities shall be based on the following principles: priority of human life and health over performance results; leading role of Company managers at all levels in providing safe labor conditions; responsibility of each Company employee and contractors for their own safety and the safety of those around them, as well as the right to interfere in situations where operations are performed unsafely; involvement of all Company employees in reducing occupational injuries, mitigating the risks of fire and explosion hazardous and emergency situations, as well as human diseases; priority of prevention over actions to localize and respond to the consequences of an incident HEALTH AND SAFETY COMMITMENTS In order to achieve the foregoing objectives, the Company shall assume the following commitments: comply with international, federal and regional legislation applicable to the Company s activities, as well as any other health and safety requirements; take measures to prevent occupational injuries, occupational diseases, mitigate the risk of fire and explosion hazardous and emergency situations, reduce the scale of fires and explosions, prevent them from spreading beyond the Company s production facilities; consult the Company employees and their representatives on health and safety; continuously improve the health and safety management system and performance. PAGE 4 OF 8
5 HEALTH AND SAFETY POLICY STATEMENT 1.4. HEALTH AND SAFETY TARGETS In accordance with its commitments and strategic objectives, the Company has set the following targets: develop a safety culture and leadership skills in health and safety at all levels of management; detect and assess the actual and potential impact of the Company s activities on the life and health of people, including through high-quality preparation of pre-design and design documentation and the necessary expertises; continuously evaluate and prioritize the risks of hazardous events that can adversely affect the life and health of people, the reliability of technological processes and integrity of the Company s production facilities; make sure the Company responds promptly and effectively to all emergencies, fires and accidents that result from the Company s operations, interacting with specialized organizations and authorized governmental agencies; introduce and use advanced technologies that help prevent occupational injuries and occupational diseases, fire and explosion hazardous and emergency situations; prepare and implement action plans to protect the health of employees, prevent and reduce common and occupational illnesses, develop a healthy life style culture; inform the Company employees and any other interested parties of the labor and working conditions, existing technological process conditions and applicable health and safety requirements; maintain the employees required level of health and safety competences through the system of briefings and corporate training; develop, introduce and apply a safety incentives program; with regard to all employees, contractors and any other persons related to the Company s activities define and supervise the responsibility and accountability for the safe conduct of operations at production facilities and encourage compliance with safety rules after hours; systematically monitor the technical condition of the Company s production facilities and compliance with health and safety requirements, including those with regard to the applied technical devices, tools, materials and personal protection equipment; manage effective cooperation with governmental authorities, scientific and research institutions, the public and other interested parties in order to share the experience and mutually inform each other of health and safety activities, as well as develop and implement up-to-date rules and standards; analyze and assess the Company s health and safety performance to further improve the management system. PAGE 5 OF 8
6 HEALTH AND SAFETY SYSTEM AND MANAGEMENT METHODS 2. HEALTH AND SAFETY SYSTEM AND MANAGEMENT METHODS Health and safety shall be managed by an integrated HSE management system certified for compliance with standards ISO and OHSAS and being part of the Company s management system. The health and safety management system has been implemented in a three-tier management model and includes the following: defining uniform requirements and guidelines for health and safety activities, strategy, objectives of Company development in health and safety (corporate tier); maintaining and coordinating the health and safety activities by business streams (business block tier); implementing an action plan to achieve health and safety compliance (Group Subsidiary tier). Health and safety risk management shall be part of the Company s enterprise-wide risk management system. PAGE 6 OF 8
7 APPENDIX. TERMS AND DEFINITIONS APPENDIX. TERMS AND DEFINITIONS ACCIDENT an event that occurred to an employee or any other person involved in the production activities of the employer when they were performing their job responsibilities or working under the instructions of the employer or representative thereof, or in the course of any other lawful actions conditioned by their labor relations with the employer or performed in its interests, which resulted in the need for the injured to change their job, caused at least one day away from work or death. BUSINESS BLOCK the totality of Rosneft structural units directly reporting to a Rosneft senior manager in charge of a business stream; Group Subsidiaries and/or structural units of the Group Subsidiaries operating within the business stream. COMPANY a group of legal entities with different forms of incorporation, including Rosneft Oil Company, where the latter acts as a principal or dominating (participating) company. DISEASE/ILLNESS a disorder caused by pathogenic factors resulting in disability, deteriorating fitness for work or ability to adapt to the changing external and internal environment with concurrent changes in protective compensatory and adaptive reactions of the organism [Federal Law dated FZ On the Fundamentals of Health Protection of Citizens in the Russian Federation ]. EMERGENCY hazardous man-made event threatening human life and health within a facility, certain territory or aquatic area, and resulting in the destruction or damage to buildings, structures, equipment and transport hardware, interruption of production or transportation process, environmental damage [Federal Law dated FZ Engineering Regulations for the Safety of Buildings and Structures ]. FIRE uncontrolled burning causing property loss, damage to the life or health of citizens, interests of the subsidiary and the state [Federal Law dated FZ On Fire Safety ]. FIRE SAFETY individuals, assets, subsidiary and the state being protected against fire [Federal Law dated FZ On fire safety ]. GROUP SUBSIDIARY business entity, where Rosneft Oil Company owns, directly or indirectly, a 20% share or more in the registered capital. HAZARDOUS EVENT / INCIDENT any unscheduled event in the Company s work environment that damaged or could potentially damage people, the environment, Company assets or reputation. HEALTH a system for the protection of health and life of employees in the course of their labor activities, including legal, social, economic, organizational, technical, sanitary, hygienic, medical, preventive, rehabilitative and other actions [The Labor Code of Russian Federation]. HEALTH, SAFETY AND ENVIRONMENTAL RISK a measure of hazard characterized by the probability/frequency of a hazardous event/incident and severity/materiality of its impact/damage. INTERESTED PARTY Company partners and counterparties, industrial and Russia-wide business communities, nonprofit and public organizations, educational institutions, as well as the Company s employees, individuals and other persons interested in cooperating with the Company, or to some PAGE 7 OF 8
8 APPENDIX. TERMS AND DEFINITIONS extent dependent on the activities performed by the Company within the regions of its presence, except governmental authorities. INDUSTRIAL SAFETY the state of security and protection of the vital interests of a person or subsidiary from emergencies at hazardous production facilities and the consequences of such emergencies. OCCUPATIONAL INJURIES the totality of injuries (mutilations or other health damage) suffered by the employees or other persons involved in the production activities of the employer over a certain time period when performing their job responsibilities under the employment contract or in the course of commuting to and from work using employer vehicles, under the impact of hazardous factors resulted in the need for the injured to change their job, days away from work (at least one shift), long-term incapacitation or death. OCCUPATIONAL DISEASE chronic or acute disease of an employee caused by the harmful impact of a hazardous occupational factor/factors and resulting in temporary or long-term incapacitation. PRODUCTION FACILITY buildings, structures, premises (including offices), process units (plants, stations), motor roads and railways, vehicles, special machinery used in production or administrative activities. PRODUCTION FACILITY INTEGRITY the state of a production facility being protected from external and internal factors of natural, technogenic and anthropogenic nature, which could result in equipment failures, emergencies, fires and/or deteriorate their operating condition. RADIATION SAFETY protection of present and future human generations against the harmful impact of ionizing radiation [Federal Law dated FZ On Radiation Safety of the Population ]. ROAD TRAFFIC SAFETY the state of people and cargo movements, with or without vehicles, that reflects the degree of protection of road users from traffic accidents, or incidents involving vehicles, and from their consequences, including sufficient organizational, technical, training and medical actions. WELL CONTROL SAFETY the state of vital interests of an individual and the subsidiary being protected from well control incidents and blowouts at hazardous production facilities, and the consequences of such well control incidents and blowouts. PAGE 8 OF 8
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