Policy highlights

Salamander Energy will operate in accordance with the following principles:

• We will promote a culture within the Company in which all employees share a commitment to a healthy and safe workplace
   
• We will comply with applicable laws and regulations and apply recognised international standards where laws and regulations are not in place
   
• We will ensure that employees and contractors are properly trained and aware of the importance of health and safety matters

Performance

The Group has a rigorous set of HSE standards, procedures and guidelines that are made available to all employees via the Group’s Intranet. It is made clear to all employees and contractors that they are expected to adhere to these standards when engaging in any business related activity on behalf of the company. The Executive Directors reinforce this message during management visits that are conducted at least annually and their findings are reported back to the Board of Directors.

The number of man hours operated fell in 2012, reflecting the concentration of operations in three core areas. Following a review in the second half of 2011, there was a marked improvement in HSE performance during the first half of 2012 with no lost time injuries recorded. Unfortunately when drilling commenced onshore Indonesia in the second half of 2012 there were three LTI’s. The Group has completed an investigation into each incident and management has reiterated its commitment to Health and Safety and the importance of adhering to policy to all employees and contractors involved with the project.

The construction of the Bualuang Bravo Platform was completed following 1.3 million man hours of work and achieved zero LTI’s, the achievement of which all employees and contractors involved with the project can rightly be very proud.

Following the commitment made in 2011 to improve the HSE culture within the organisation, the number of management visits and presentations at operational sites increased in 2012.

The Group suffered 3 LTI’s in 2012 (as it did in 2011) and due to the lower number of man-hours worked the LTIFR increased to 1.31, which is above the OGP average for S.E. Asian drilling focused operations of 0.70. However, Total Recordable Incidents fell by 50% in 2012 and the TRIFR was 2.62, below the OGP average of 2.8.

Targets for 2013

• Zero fatalities
   
• Zero LTI’s
   
• TRIR 20% below OGP average