The Company seeks to improve its HSE processes with contractors, which are based on identifying, assessing and mitigating risks at all stages of work and service delivery by contractors and subcontractors at KMG Group production facilities.
Based on the results of the work carried out in 2022, 455 contractors provided services and performed works for SDEs in all business areas of the Company. The most significant shares of the total volume of services and works are Transport and Logistics (22.02 %), Equipment Manufacturing and Maintenance (15.73 %), Construction and Installation (9.89 %) and Fire and Industrial Safety (9.44 %), while the total volume of Oilfield Services is 31.71 %.
Volume structure by type of service provided
The assessment of contractors’ HSE performance for 2022 showed that the highest number of occupational accidents occurred in the areas of Drilling and Well Servicing – 38.5 %, Well Servicing (WO, WL) – 28.2 % and Catering and Cleaning – 12.8 %.
To prevent similar accidents involving contractors, in December 2022, KMG’s HSE Department held regional (Astana, Aktau, Zhanaozen, Atyrau) workshops on ensuring industrial, fire and transport safety at hazardous production facilities of SDEs, including in cooperation with contractors. In particular, an analysis of the systemic causes of accidents (injuries, fires, road accidents) that occurred in contractors, an analysis of contractors’ contractual HSE obligations, and recommendations for improvement were made.
Percentage of accidents by type of service provided
The Company requires contractors to strictly observe and comply with RoK statutory requirements and the requirements of the Company’s HSE policies and standards, which are taken into account when contracting for services and works.
The Company’s key HSE requirements are the audit and compliance of contractor’s plant and equipment and personnel prior to commencement of works, development and implementation of contractor’s HSE Plan during works and assessment of contractor’s performance upon completion of works.
The LTIR (LOST TIME INJURY RATE) per million man-hours involving contractors was 0.52 in 2022.
The FAR (FATALITY ACCIDENT RATE) per 100 million man-hours involving contractors was 1.28 in 2022 due to the death of one contractor worker resulting from a fire.
A total of 41 accidents occurred among contractors in 2022. The most common traumas were fractures and injuries to the lower and upper extremities. The hours worked by contractors were 78.26 million man-hours in 2022 (77.1 million man-hours in 2021), man-hours were calculated.
The MVCR (MOTOR VEHICLE CRASH RATE) per million kilometres travelled involving contractors was 0.17 in 2022.
Rates of lost time injury, fatality accident and motor vehicle crash involving contractors
|
KPI |
202011 |
202112 |
2022 |
IOGP13 |
|
Lost time injury rate, per million man-hours (LTIR) |
0,00 |
0,27 |
0,52 |
0,24 |
|
Fatality accident rate, per 100 million man-hours (FAR) |
0,00 |
0,00 |
1,28 |
0,90 |
|
Motor vehicle crash rate, per million kilometres travelled |
0,00 |
0,24 |
0,17 |
0,058 |
11 No data available.
12 Data exclude KTG and its subdivisions.
13 Available IOGP figures for 2021 (https://www.iogp.org/).
To confirm the GAP analysis data performed by SDEs and their verification, audits are planned for 2023 to verify the compliance of processes for interaction with contractors in SDEs, compliance with corporate HSE policies and standards, including control and monitoring of implementation of policies and standards, expert review, risk analysis and assessment, recommendations to eliminate constraints (system causes) for SDEs’ interaction with contractors in HSE area.