Safety at work

Ensure healthy lives and promote well-being for all at all ages.

Make cities and human settlements inclusive, safe, resilient and sustainable.

We ensure safety and labor protection of our employees; perform № wellness programmes and render social support to employees.

Compliance with the highest security standards is a critical engine of production success and one of the KMG’s strategic goals. We develop our safety culture in the KMG Group of companies in order to achieve and maintain high production rates. We are not limited to regulations and procedures, but change culture of doing business when it comes to risks management in our activities, our capabilities, our technologies and our security programs. We are moving from a business model, corresponding to standards, to proactive model, for which common standards, processes and procedures are required, and are foundation of such changes – our step forward.

Having collected data for several years, we understood the main factors, affecting the safety indicators of our operations. Problems with internal procedures, training and competence of employees are key factors that have a direct impact on the reliability of our production. Having armed with new data, we are creating targeted programs to ensure reliability, which will cover human factors during modernization.

Our task is to make so that KMG employees and contractors return home unharmed on a daily basis. We will never stop working to achieve our key goal – complete absence of injuries, accidents and incidents.

Activity of any company and its contract organizations are potentially dangerous for people and can cause loss of ability to work or loss of assets, decrease in production efficiency, financial losses and may adversely affect the company’s reputation as a whole. Therefore, HSE management issues are among the most priority business processes of our Company.

We continue to follow the established priorities and approaches, corresponding to the best world practices, such as:

  • Priority of human life and health value in relation to the results of production activities;
  • Involvement and training of managers at all levels in HSE issues;
  • Personal responsibility of each employee for compliance with safety and health requirements;
  • Creation of a proactive safety culture to prevent accidents and incidents;
  • Effective communication between all stakeholders;
  • Ensuring the safe performance of work and liquidation of unsafe behavior.

2017 was a year of significant improvements in occupational safety and health and continuation of the way on improvement of the safety culture in the Group of companies KMG.

The main program on attraction of line managers to the process of HSE management was the Program of Behavioral Observations on Safety in Work, implemented in 2017.

The purpose of the program is:

  • Formation and enhancement of culture of safe behavior in the workplace;
  • Identification and elimination of dangerous actions and conditions before an accident occurs;
  • Identification of obstacles preventing the implementation of safe work practices;
  • Influence on the behavior of employees and their attitude to safety and labor protection issues;
  • Demonstration of commitment to safety and health issues on the part of management;
  • Prevention of potential accidents and reduction of work-related injuries.

The program was created for an open dialogue on safety and labor protection between the line management and field workers. It is known, that this programme is one of the best world practices, and based on the results of 2017, it has a beneficial effect on safety culture and reduction of injuries in the Group of companies. The quantitative indicator of conducted behavioral safety observations was taken into account during calculation of the functional efficiency for supervisors of production SDEs.

One of the key security indicators, Lost Workday Case ratio (LTIR), was entered into corporate efficiency, and was cascaded to KMG’s subsidiaries and dependent entities. LTIR ratio is set as the KPI for SDEs in 2018. Functional KPI is being introduced for supervisors, namely enhanced KPI on behavioral safety surveillance and driving safety. Execution of Corrective Action Plan, developed on the basis of the hazardous behavior of workers, identified in 2017, is also taken into account.

A three-tiered system of HSE committees has been approved since 2017. The committees included senior management, production managers and HSE heads. The purpose of creation of system of the committees is definition of a vision, approval of KPI system, strategy and basic HSE guidance documents. Committees are designed for solution of following tasks:

  • Provision of senior management perspective on HSE;
  • Creation of a vision of the Group in the area of health and safety, industrial safety and environmental protection with specific goals and objectives;
  • Ensure the involvement of management of production units in the development of targeted HSE programs and provision of necessary resources for implementation of five-year plan;
  • Consultations on risks and opportunities in the area of HSE.

Achievements

The overall merit of all workers of the Group of companies KMG is the excellent results, obtained in accounting on accidents and incidents over the past three years, as well as adoption of appropriate measures, based on identification of root causes. This fact is evidenced by an annual reduction in injuries in the workplace. Positive changes were achieved in the part of introduction of the best world practices. We are moving in the right direction, but we are still far from our target indicators “zero incidents, accidents and spills”, and more efforts are required in order to draw attention of all employees to security issues.

In order to improve safety culture and reduce level of injuries in the workplace, the following work was done:

  • Implementation of Work Safety Behavior Monitoring Program – 85,301 conducted programmes for the Group.
  • Development of seven corporate documents based on the world practice, providing a consistent and ubiquitous approach to issues of safety and labour protection throughout the Group of companies.
  • Conduction of comprehensive audits in SDEs with the highest level of injuries.
  • Conduction of on-site presentations in order to train employees to new security programs, top management – the importance of their involvement in security processes.
  • The overall percentage of the implementation of the 5-year Roadmap, containing strategic HSE initiatives, was 82 % for 2017.
  • Holding of the 18th Annual Forum of Directors of safety and labour protection services.
  • The III Annual Forum of Directors General in the area of labour safety and protection was held under the auspices “Outstanding Leadership in Occupational Safety and Health”.
  • As part of the campaign on arise of the awareness on use of seat belts, about 250 employees of corporate centres in Astana have tried the simulator “Konvinser” in action. More than 1,000 employees took direct part in the presentations. Then “Konvinser” was sent to Mangistauskiy region for further campaigning in the regions. As of April 2018 about 1,500 employees took part in presentation of the simulator in Mangistauskiy region, more 1,000 have experienced the action of “Konvinser”.
  • III annual contest of the Chairman of the Board of KMG “The best innovative ideas and practices in the area of health, safety and environmental protection of the Group of companies JSC NC “KazMunayGas” was held.
  • Development of mobile applications “8 Golden Rules”, “Safety Alphabet”, “10 Steps to Improvement” by employees of “Intergas Central Asia”.

The Group’s commitment to security issues and introduction of the world’s best practices has maintained a position of high level: 90 % participation of the first leaders in safety training activities, adherence to the world standards, and the most important – recognition of direct benefit from high labor protection indicators for production efficiency, that results to high financial indicators.

Thus, visiting meeting of the Board of Directors of JSC NC “KazMunayGas” was held in Atyrau on the basis of Embamunaygas JSC (subsidiary of KazMunayGas Exploration Production JSC) for the first time in the history of KazMunayGas. As any other meetings in the Company, the meeting was began with the consideration of the paramount issue – issue of occupational and environment safety.

The third annual forum of general directors concerning “Outstanding leadership in the area of safety and labor protection” was held on June 28, 2017. Within the framework of the event, a solemn ceremony of awarding certificates of KMG’s SDEs for the best performance in the area of labor protection was held on the results of 2016 with the participation of the Chairman of the Board of JSC NC KazMunayGas S. M. Mynbayev. The winners were selected on the basis of the assessment of safety and health indicators (FAR, LTIR, MVCR), number of employees, ratio of labor protection to total number of employees of the company; taking into account introduction of corporate standards and initiatives, th risks of the company in the area of labor protection, as well as use of best practices. As a result, the heads of the companies “Intergas Central Asia”, Pavlodar Refinery, “Embamunaygas”, “Oil Transport Corporation” and “Munai telekom” received awards.

On the initiative of the KMG, a simulator of seat belts “Convincer” was developed for the first time in Kazakhstan, which simulates a low-speed road crash, which allows you to feel the impact force in an accident and realize the need for using seat belts. This simulator was presented to top management at the General Directors Forum and received comprehensive support from the first leaders of the Group of companies KMG. It was decided to purchase the “Konvinser” for a permanent demonstration of the need to use seat belts for employees.

KMG supports the vision and goals, as well as the initiatives of the International Association of Oil and Gas Producers (IOGP) in the area of improvement of processes of labor protection, industrial safety and environmental protection (HSE) in the workplace.

Since 2014, the KMG initiated the practice on accounting in accordance with the requirements and standards of IOGP, benchmarking with similar oil and gas companies to identify areas for improvement in health, safety and environmental issues, as well as to reduce accident rates and industrial incidents. KMG became full member of the IOGP in January 2018, and participated in the accounting on safety and labor protection for the first time.

Safety and labor protection indicators

During the accounting year, we lost 5 employees. Total number of death decreased in 2017 compared to 2016 – 5 and 7 cases, respectively. (4 cases in 2015).

As mentioned earlier, LTIR rate has been taken into account in calculating of corporate KPI by HSE since 2017. Purpose for 2017 was an indicator of 0.42 per 1 million spent man-hours. The fact of 2017 was = 0.39 (accidents, related to labour activity in accordance with the legislation of the Republic of Kazakhstan per 1 million man-hours), which is 20 % lower than in 2016. Thus, there is an annual decrease in the number of accidents with loss of working time – 87 in 2016 and 71 in 2017 (99 accidents in 2015). LTIR was 0.43 at the end of 2017 according to IOGP.

An integral part of the Company’s work is to ensure a stable improvement of the company’s employees safety on the roads. Much work is being done in this area.

The Group’s total accident rate at the end of 2017 was 0.49 accidents per 1 million passed kilometres. The number of road accidents increased from 71 to 89 cases. (64 accidents in 2015).

The ratio of the total number of employees to one HNS employee has improved by 7 % (decreased from 1:87 to 1:81).

Main security indicators

Main security indicators

2015

2016

2017

Man-hours of work (mln)

181.2

175.0

170

Passed km (mln)

149.9

157.6

178.3

Fatal cases, related to labor activity

4

7

5

Fatal cases on 100 mln man-hours

2.17

4.00

2.89

Lost Workday Case

99

87

71

Accidents (according to the legislation of the RoK) per 1 mln man-hour

0.56

0.49

0.39

Road accidents

66

71

89

Road accidents per 1 mln travelled km

0.40

0.43

0.49

Lost Workday Case Rate

Rate of fatal cases, related to labor activity

Future areas of work

The work without accidents and industrial accidents in the Group of companies depends not only on the targeted actions of KMG and SDE employees, but also on contractors, whose total number is more than 2 times the number of employees of the Company. At the same time, the likelihood of occurrence of risks of accidents and incidents is in proportional dependence. The requirements to contractor organizations on strictly compliance with corporate provisions and rules on safety and health are an integral part of an effective management system in the area of Labor protection and environment KMG.

Thus, it was decided to start work with contractors, which are outside the KMG group, on creation of culture of responsible behavior in the area of HSE in 2018. One of the first stages of the work is the transparency of the provision of information on incidents during performance of work at production facilities (contract areas) of KMG SDEs. From next year, representatives of contract organizations will personally participate in major events on HSE, which will lay the foundation for formation of a safety culture among contractors.

The philosophy of safe driving says that 95 % of all traffic accidents can be avoided if you follow the rules and practices of safe driving.

It is planned to introduce a Program of behavioral observations on driving safety in 2018 for formation a culture of safe driving, creation of an open dialogue between line management and drivers, and, a clear understanding of the driver’s primary task – to bring passengers to their destination safely. We believe that this program is one of the world’s best practices, which will make a significant contribution to improvement of transport security in the Company. It is also planned to implement and develop safe driving programs.

According to the results of inspections, it was revealed that the level of employee awareness at production is very low. Therefore, one of the priority areas of work is development and implementation of a program on improvement of level of awareness of workers in the area, including following main activities: quarterly messages from the Chairman of the Management Board to employees for the purpose of improvement of safety culture, distribution of brochures on various topics, and development of information interactive mobile application by HSE.