Download Corporate Responsibility Report

Corporate
Responsibility
Report
About this report
With the present Corporate Responsibility Report Wintershall is
informing about their economic, ecological and social activities
within 2015. Using examples and key indicators we illustrate how
corporate responsibility contributes to Wintershall’s long-term
success.
Issues (IPIECA). Deviating standards or reporting boundaries
will be clearly visualized. The data and information for the reporting
period were sourced from the expert units responsible using
representative methods. The reporting period was the 2015 business year (January 1 to December 31, 2015).
The report includes Wintershall and its subsidiaries. As part of the
BASF Group the financial information is based on the requirements of International Financial Reporting Standards (IFRS). The
sustainability reporting is guided by the standard of the Global
Oil and Gas Industry Association for Environmental and Social
The report is published annually in German and English and is
available as a PDF version on the Wintershall website. In order
to improve readability, only the male form is used in the text, nevertheless all data apply to members of both gender.
Insights into the
world of Wintershall
Page 10
Page 16
For further information, please visit the homepage of Wintershall.
There you will find exciting insights into the world of crude oil
and natural gas as well as information about our company, technologies and innovations.
www.wintershall.com
Page 22
At a glance – Key indicators 2015
Economic data 1 Sales to third parties
Unit
2015
2014 € million
12,998
15,145
Exploration & Production
€ million
2,809
2,938
Natural Gas Trading 2
€ million
10,189
12,207
Profit from operating companies (EBIT)
€ million
1,072
1,688
Investments and acquisitions 3
€ million
1,823
3,162
MMBOE 4
153
136
2014 Production
Ecological data
Water use (total)
Waste (total)
Unit
2015
million m3
28.9
29.6
t
93,097
52,631
Energy
Energy consumption
Steam use
MWh el
546,900
498,511
t
492,552
507,288
Greenhouse gas emissions
CO 2
million t
1.28
1.06
CH 4
t
5,080
4,427
t
3,883
3,612
2015
2014 Number of employees 5
as on Dec. 31
2,000
2,715
Apprentices 6
as on Dec. 31
52
56
Emission of inorganic substances
Social data
Occupational safety
1
2
3
4
5
6
Fatalities (own employees and contractors)
0
0
Injury with > 1 day lost time (own employees and contractors)
9
4
he information on the financial aspects is based on the requirements of International Financial Reporting Standards (IFRS)
T
Through the asset swap concluded with Gazprom by September 30, 2015 without contributions from the natural gas trading and storage activities in the fourth quarter of 2015
Property, plant and equipment and intangible assets incl. capitalized exploration wells
Million barrels of oil equivalent
2015 figure excluding employees from the divested natural gas trading and storage activities and Wintershall Noordzee B. V.
Apprentices in Germany
Content
Foreword 2
Company Profile 5
Insights 9
Responsible
Growth 28
Responsible
Operations 36
Responsible
Cooperation 50
Outlook 58
CONTACT / imprint 60
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Wintershall
Corporate Responsibility Report 2015
Mario Mehren
Chairman of the Board of Executive Directors
Dear Ladies and Gentlemen,
In an eventful year 2015 the market environment posed major challenges. The conditions
were challenging for the oil and gas industry throughout the world, particularly due to the
low and volatile oil and gas prices as well as the current political crises and upheavals.
Nevertheless, Wintershall performed well under these difficult circumstances – we demonstrated that we can operate successfully even at times of low prices.
In every crisis is an opportunity to optimize processes and to focus on essentials. The aim is
to make Wintershall even fitter for the future. That means we need to have costs under
control, optimize our production and manage our projects efficiently. Therefore, Wintershall
will do both in the coming years: save and invest. That is not a contradiction. We will
keep investing in selected projects, especially in regions with favourable production conditions. These include further development of the Achimov formation in the Urengoy
field in Russia, the Maria project in Norway and expansion of gas production in the south
of Argentina.
Responsibility is one of our corporate values. This term reflects Wintershall’s attitude and
character, that’s why we focus on it in our first corporate responsibility report 2015.
Already since 2007 we annually report about our performance in health, safety and envi­
ronmental protection. This year’s report integrates economic, environmental and social
aspects for the first time. Please find out how we understand and implement responsibility in the three major subjects of growth, operations and cooperation. And get to know
the standards that we set ourselves, the strategies that we use to pursue them and, last
but not least, the performance that we achieve in doing so.
Environmental protection and high safety standards have tradition at Wintershall. One
example is our no-flaring approach. In our own operations, we have stopped the flaring of
associated gas during routine operations already since 2012. To us, our high standards
are more than rules to which we adhere. They are practiced corporate culture. It is in harmony with profitability. We know that excellent performance in this area strengthens us
in the fierce international competition for the award of licences and shares.
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Wintershall
Corporate Responsibility Report 2015
At Wintershall we maintain an open and dialogue-based corporate culture. With good
reason: Only in dialogue and as a team we will make progress. What connects all employees
at Wintershall is the commitment to achieve the best possible performance and to develop ideas which meet the challenges of the future successfully.
Open communication is also important in respect of our social responsibility. Companies are
expected to look beyond their own backyard and to contribute to solving global challenges. Therefore we define our role and our self-perception in order to be successful in the
long term.
Yours,
Mario Mehren
Chairman of the Board of Executive Directors
Company Profile
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Wintershall
Corporate Responsibility Report 2015
Successful through technological
expertise and strong partnerships.
Wintershall is an oil and gas producer with worldwide operations. Furthermore we are active in the transport of natural
gas in Europe. It is a wholly-owned subsidiary of BASF SE.
As an international company with German roots, we focus
on selected core regions, where we have built up a high level
of regional and technological expertise. These are Europe,
Russia, North Africa, South America, and increasingly the
Middle East. Wintershall employs about 2,000 employees
from more than 50 nations.
Oil and gas secure global supply of raw materials
Wintershall contributes strongly to the supply of energy. Thereby the exploration and production of crude oil and natural gas is
our main business. We have over 120 years of experience in
extracting natural resources and have been producing crude oil
and natural gas for more than 80 years.
Oil and gas are the cardiovascular system of our industrial society.
Our prosperity is based on the long-term secure supplies of
energy. As energy sources and industrial raw materials, hydrocarbons will play an important role in future. Oil is one of the most
valuable fossil fuels in the world, and there will be no change in the
near future. Natural gas has the best ecological performance
among fossil fuels. And because of its low CO 2 emissions compared to other fossil fuels it is used primarily for heating and
for generating electricity. In addition, it will be more important for
the industry as a raw material.
Wintershall has currently an annual production of over 150 million
boe and is Germany’s largest internationally active oil and gas
producer. We focus on investing in the development of promising
new deposits, increasing the yield from producing fields as
well as on operating as efficiently as possible. Thereby we rely on
innovative technologies and strong partnerships.
Technology “Made in Germany”
From a technical perspective, the exploration and production
of crude oil and natural gas in Germany is particularly challenging.
In view of complex geological conditions, it is necessary to
deploy highly sophisticated technologies. As a result, production
in Germany serves as a lab for developing new trend-setting
technologies. These “Made in Germany” innovations are used
around the world, making our company a valued partner in
the international arena.
Strong partnership
Long-term partnerships form an important basis for our success.
State-owned and private companies trust in our know-how,
experience, and reliability – this ranges from our activities in Siberia’s permafrost, through the North African desert, to the South
American steppe. Our partnerships are successful because everyone contributes what they are best at, thus complementing
the other party. And we understand to further develop our partnerships.
Responsible Operation
In our activities we are creative and technologically innovative to
achieve our business objectives. We have the courage to put
extraordinary ideas into action. We are open, value diversity and
promote dialogue. Even before our activities start, we examine
potential effects on humans and the environment. Furthermore,
we take into account social aspects as well as the protection of
cultural heritage. We constantly strive to improve our processes to
use resources more efficiently and further minimize our impact.
Further information about our company under
www.wintershall.com/company.html
company profile
Core Regions
Germany
Russia
Europe
North Africa
South America
Middle East
Germany
North Africa
Wintershall has been active in the extraction of natural resources for 120 years, and in the exploration and production of crude oil and natural gas
for over 80 years. We produce oil from a total of
15 fields and gas from over 35 fields in Germany –
using the latest technology and maintaining high
environmental standards.
Since 1958, we have been active in the exploration and production of crude oil in Libya, both
onshore and offshore. Wintershall is regarded
as a technology and environmental pioneer in the
E&P sector in the North African country.
Europe
South America
Since 1965, Wintershall produces oil and gas in
the Dutch North Sea. We have also licenses in
British, Danish and Norwegian territorial waters.
Today, the company holds over 60 licenses on
the Norwegian Continental Shelf, more than half
of them as operator.
Wintershall has been producing hydrocarbons
in Argentina for more than 35 years and is now the
fourth-largest gas producer in the country. Wintershall currently holds working interests in 15 oil
and gas fields. Moreover, it is Wintershall’s research center for production from unconventional
reservoirs.
Russia
Middle East
Achimgaz, Severneftegazprom und Wolgodeminoil
are the cornerstones of our business with Gazprom und LUKOIL. In addition, Wintershall is a
shareholder of Nord Stream – a twin pipeline
system through the Baltic Sea, a gas supply route
for Europe.
In 2010 we opened an office in Abu Dhabi. Since
2012, we have taken on the technical appraisal of
the sour gas and condensate field Shuwaihat in
the United Arab Emirates as operator. A first exploration well was completed in 2015.
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Wintershall
Corporate Responsibility Report 2015
Highlights 2015
Asset Swap
90 percent
In the 25th year of their partnership, BASF / Wintershall and
Gazprom have completed the
swap of assets of equal value.
Wintershall focuses now on exploration and production
of oil and gas as well as natural gas transport and transferred the gas trading and storage business to Gazprom.
Wintershall signs a new investment agreement for Vaca
Muerta and thereby expands its participation in the Aguada
Federal block in Neuquén province.
Research cooperation
ADNOC and Wintershall agree on a cooperation in
research and development for Chemical Enhanced Oil Recovery (cEOR).
60 years in Landau
Since 1955, Wintershall produces crude oil in the southern Palatinate. Also for the future, the oil production plays
an important part for the energy supply in Germany.
Change
Mario Mehren (2nd from left) takes over as CEO. Next to
Martin Bachmann (left) and Dr. Ties Tiessen (2nd from right)
is Thilo Wieland (right) new in the board.
~80,000 boe
With the production start in the fields Edvard Grieg and
Knarr in the North Sea as well as the takeover of Vega
operatorship from Statoil, Wintershall strengthens its production profile in Norway.
Unmanned mini-platform
The unmanned mini-platform L6-B starts to produce natural gas off the Dutch North Sea coast.
Insights
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Wintershall
Corporate Responsibility Report 2015
“Who is
actually
MARIA?”
58° 58' N, 5° 44' E
Hardly any other country in Europe has such an exciting
and varied coastline as Norway. Nature changes its
appearance within a few kilometres. Along the coast runs
also the Norwegian continental shelf, a shelf with enormous resource potential.
Insights
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Wintershall
Corporate Responsibility Report 2015
An innovative development concept
allows the economic and
environmentally friendly development
of the Maria field.
Around a quarter of all oil and gas
reserves in the world are located under
water; in Europe, this figure is as
high as 90 percent. The North Sea has
been one of the most important production regions for decades. There are
now more than 450 platforms there,
many of which are in Norway. The resource-rich kingdom in the North of
Europe is the most important supplier
of fossil fuel to Europe after Russia.
Wintershall scrutinizes Maria
“Maria” dominated the headlines last year
in Norway. These headlines, however,
did not involve a member of the royal family,
but a development project with an innovative approach off the coast of Norway.
What is special about this is the extremely sophisticated integration into an already
existing technological infrastructure.
The concept envisages operation without any new separate platform for production, storage, treatment and loading. Instead, two remote-controlled installations
on the seabed at a depth of 300 metres
will take over production, integrated into
a system of three already existing platforms, which are up to 40 kilometres away.
“This tie-back requires very complex
engineering”, explains May Kristin Sviland,
Manager for Health, Safety and Environment in the Maria project.
The development of the Maria field is one
of Wintershall’s own-operated projects
in Norway. The field is located in the Halten
Terrace in the Norwegian Sea, 200 kilometres from the mainland, and was discovered by Wintershall in 2010.
The best possible solutions to challenges
such as those posed by the Maria field
can be developed only if the collaboration
is based on teamwork. An interdisciplinary team composed of Wintershall employees, partners and contractors pools
its expertise and works together to make
the project successful.
In September 2015, the Norwegian authorities approved the development concept,
which, in many respects, pinpoints new
approaches.
Corals and pipeline route must
harmonize
Standards for protecting the environment
are also high. A special focus of the Maria
project is on protecting sensitive habitats
and preserving species diversity. That
is why Wintershall, in principle, uses environmentally friendly technologies and
methods if possible. The comprehensive
environmental study carried out for the
Maria project clarifies what that can mean
in concrete terms.
“A technical integration
of this magnitude is
one of the most complex in Norway.”
“As part of this study, we carried out intensive investigations of the seabed”, May
Kristin Sviland explains. They revealed that
the region of the Maria field is the preferred habitat of vulnerable cold water corals. Hand in hand, environmental experts
and engineers therefore worked out a route
plan for the pipelines of the Maria field
that keeps them as far away from the coral colonies as reasonably possible.
Insights
01
02
03
The Deepsea Stavanger unit (semi-submersible rig) will drill wells on the Maria field starting from April 2017 (01). The careful
planning of the pipeline route protects the habitat of sensitive cold-water corals (02). The Norwegian project team (03).
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Wintershall
Corporate Responsibility Report 2015
Development and Operation Plan Maria
Åsgard A / C
KRISTIN
Åsgard B
HEIDRUN
Oil offloading
for oil export
Host for
processing Maria
wellstream
Provides lift gas
via Tyrihans D
to improve oil
production
Provides injection
water to increase
pressure in
the reservoir
Gas export via
Åsgard transport
gas pipeline
TYRIHANS D
MARIA H
MARIA G
Subsea template
Production
template
Production
template
Insights
Developed innovative solution concept
The development solution for the Maria
field consists of two installations on the seabed, which are connected to the platforms, Kristin, Heidrun and Åsgard B, via
a subsea connection.
Like “Maria” are their names derived from
Norse mythology. The assignment of
names for new discoveries is clearly regulated in Norway. They have to reflect
the importance of the activity for the region
as well as the entire country. Especially
popular are therefore names from Norse
mythology, followed by famous Norwegians. Furthermore, new names have to be
compatible with existing field names if
they are located in the same area. The final
word always has the Norwegian Ministry of Energy, which has even appointed a
committee of experts. It consists of historians, journalists and politicians.
Each of the three platforms fulfils different functions: The aim of the Heidrun platform, 40 kilometres to the north of the
Maria field, is to supply the injection water
required for production. The Åsgard B
platform, which provides the gas that is likewise important to production, lift gas, is
20 kilometres away. On its way, this gas
will pass the already existing subsea
installation, Tyrihans D.
The control room, from which production
is to be monitored, is located at Kristin.
The monitoring and remote control cables
will run for 26 kilometres to the subsea stations of the Maria field. Conversely,
pipelines will then channel the raw products to Kristin, where they will be treated.
Separate treatment plants for the Maria
project do not need to be built – a major
cost benefit.
The circle will be completed when the
treated oil is channelled to the Åsgard C
platform and is loaded onto tankers
there.
The natural gas will be fed into the Åsgard
gas transport pipeline, which ends at
Kårstø onshore plant. The network of pipelines for the Maria project will have a
total length of at nearly 100 kilometres.
May Kristin Sviland is sure that “the technical integration of this magnitude is one of
the most complex in Norway”. The advantages are diverse: We are increasing
profitability and reducing development
costs compared with a new construction;
furthermore, material usage is significantly lower. Oil production and processing
also requires less energy, thereby significantly reducing CO 2 emissions.
“By developing this
innovative solution we
are strengthening
our position as a subsea operator.”
Another positive aspect is that the existing infrastructure can be used on a more
intensive and long-term basis, which
also convinced all involved partners and
stakeholders. “By developing this innovative solution that utilizes existing infrastructure in the Norwegian Sea, we are
strengthening our position as a subsea operator and generating substantial value
for the partnership and the whole supply
chain”, says Hugo Dijkgraaf, Wintershall
Project Director for Maria.
Maria project proceeds
In 2015, important steps for implementing the project were taken – apart from
getting the approval for the development
concept, Wintershall also awarded the
drilling contract. It has been assigned following a thorough international selection
process and in alignment with the other
Maria license partners. From April 2017,
Odfjell Drilling will drill down to a depth of
around 3,800 metres using its Deepsea
Stavanger drilling rig. Under the terms
of the contract, the Deepsea Stavanger
unit will drill up to six wells.
Finally, in 2018, production will start in the
Maria field. In a difficult market environment, Wintershall is pushing ahead with
the first operated development in Norway.
Maria is a major subsea development on
the Norwegian Continental Shelf. And
the team is convinced that, with the subsea connection to production platforms,
it has developed the best possible solution
from a safety, environmental and economic perspective.
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Wintershall
Corporate Responsibility Report 2015
“How much
energy is
under the ice?”
66° 5' N, 76° 41' E
In the remote region of Siberia is the City of Novy Urengoy.
As the center of the main gas exploration regions of
Russia, it is called today the unofficial capital of the Russian gas production. For Achimgaz employees snow
and ice are part of their everyday life.
Insights
17
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Wintershall
Corporate Responsibility Report 2015
Achimgaz, a joint venture between
Russians and Germans.
A prime example of a successful
cooperation in the energy sector.
It is ice-cold in the Siberian Tundra –
in winter, the temperature sometimes
falls below minus 50 degrees. And
yet deep under the permafrost, there are
resources that supply Europe reliably with heat and energy. Novy Urengoy,
60 kilometres south of the Arctic Circle, 3,500 kilometres from Moscow, is
the centre of Siberian natural gas production. The town, with over 115,000 inhabitants, is the location of the Joint
Venture AO Achimgaz, in which Wintershall and Gazprom, the Russian oil
and gas company, are working together
as established partners.
In the middle of Western Siberia
Russia has more than a third of all of the
world’s natural gas supplies known today.
It is at least eighth in terms of crude oil
resources. It is the European Union’s largest natural gas supplier, with Germany
covering around a third of its fossil energy requirements through imports from
Russia.
Wintershall is participating in several joint
projects in Southern Russia and in Western Siberia. In doing so, we, together with
our Russian partners, are relying on sol-
id and long-term collaboration. A cooperation model, which has proved its worth
for more than 25 years, has developed as
a result of the constant exchange of experience and know-how.
sioned more than 60 wells and large-scale
installations, producing 15 million cubic
metres of natural gas a day. A total of 113
wells will have been drilled by the final
completion stage.
Novy Urengoy is situated in the JamalNenzen region, which is twice the size of
Germany, but has only 500,000 people
living there. The winter lasts eight months,
the average temperature in January is
minus 26 degrees and the sun rises above
the horizon for just one hour on December and January days.
The presence and close collaboration
of Wintershall and Gazprom on site enable
them to find together new concepts in
business management and to design them
more effectively. All decisions, whether
technical or administrative in nature, are
taken jointly.
Among other, Novy Urengoy is one of
Russia’s youngest towns. It was officially
founded in the early 1970s when gas
production began in the region. In those
days, there were neither rows of houses
nor supermarkets. Nowadays, Novy Urengoy offers its inhabitants modern shopping centres, universities as well as sports
and cultural facilities.
Partnership in permafrost
Not only Novy Urengoy, but also Achimgaz
is undergoing dynamic development.
So far, the joint project between Wintershall and Gazprom has already commis-
This close and trusting collaboration
assists the two companies in overcoming
the conditions in Western Siberia, which
present challenges in terms of both climate
and geology. One of the many technical challenges, for example, is the huge
difference in temperature between reservoir and surface: The Achimov formation
is located at a depth of nearly 4,000
metres below the permafrost. The gas is
stored there at a pressure of up to 600
bar and temperatures of at least 100 degrees Celsius while, on the surface, temperatures can drop to minus 50 degrees.
Insights
01
02
03
From the wooden barracks of the 60’s grew a modern city (01). The thermometer shows - 41 °C. On the coldest days,
it drops below - 50 °C (02). The festival of northern peoples is celebrated annually in Novy Urengoi (03).
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Wintershall
Corporate Responsibility Report 2015
On some days the outside temperature
falls more than 40 degrees below zero,
certain works will be stopped because of
safety aspects, for example drilling activities. The production itself can go on, but
with increased safety arrangements. A
second bus accompanies the bus with
the Achimgaz employees, which drives
nearly an hour from Novy Urengoy to the
central processing facilities. In case of
technical problems, this one can jump in
immediately.
On such days life in the Siberian city is
basically frozen. Schools are closed and
roads are empty. Only a few cabs are
driving around, which have doubled their
rates. Going outside has to be rethought
twice.
Production under such circumstances
requires the highest technological knowhow. The partners benefit from the fact
that they can combine their different competencies: Gazprom benefits from many
years of involvement in the Arctic; Wintershall contributes experience with regard
to deep wells.
demand, increase the speed of field development and reduce the costs involved
in building access routes.
Occupational and process safety also
has high priority. In this respect, too, concepts need to be tailored to the particular challenges posed by the Siberian climate. Ultimately, though, the operational
safety of the plants is not just a question of
climate. What is crucial is to meet the
highest Health, Safety and Environmental
protection (HSE) standards for each
operating state. “We achieve smooth operation through systematic process safety
analyses and comprehensive safety and
protection concepts“, Georgina Wien,
Production Engineer and Expert on Health,
Safety and Environmental Protection at
Achimgaz, emphasizes. The strengths of
the German and Russian system combine perfectly here, with the highest safety
standards being applied in each case.
“In addition, we are constantly searching
for ways to make improvements and
we carry out the best possible quality management”, Wien declares.
“We achieve smooth operation through systematic process safety
analyses and comprehensive safety and
protection concepts.”
This is underlined by Achimgaz’s international certifications. These include the
globally applicable standards for requirements on environmental management and
for occupational safety management,
ISO 14001 and OHSAS 18001, respectively. It also has other globally recognized certificates, for example, in respect
of compliance with the environmental
and social standards of the International
Finance Corporation.
Combination of strengths
In order to protect the region’s particularly
sensitive ecosystem, Achimgaz uses
the cluster drilling technique, in which only
one well site is set up for several wells.
Underground locations, just like offshore
drilling reservoirs, will be reached by extended reach wells drilled from one platform. This enables us to minimize land
Social Engagement
Achimgaz’s foundation is partnership. It is
therefore a matter of course for Wintershall to become involved in the region and
assist the local stakeholders with their
activities on the way to achieving sustainable development. Since 2005, for example, Wintershall has been supporting
the city partnership between Kassel
in Germany and Novy Urengoy as a platform for an exchange of knowledge and
culture. Through the Young Vision Award,
Wintershall, together with Gazprom International, is simultaneously supporting
dialogue between students in the two
countries as well as innovative ideas. “In
Russia, there is an increasing focus on
the inclusion of people with disabilities and
every effort is being made to promote
this more actively”, explains Ksenia Ryklin,
Manager for Partner Relations and
Corporate Social Responsibility in Russia.
Thereby Wintershall supports the Association for International Understanding and
the town of Urengoy financially to start a
joint initiative regarding the establishment
of an inclusive kindergarten. The last
two years evaluations and intensive preparations have been carried out. In December 2015, the partners involved signed the
contracts, thereby paving the way for
laying the foundation stone in 2016. When
the establishment opens, it is expected
to provide places for 200 children aged
between 6 months and 7 years, 20 percent of whom will be disabled.
Energy for the future
Proven partnership and natural gas resources below the ice: This combination
contains energy for the future, from which
both local people and people throughout Europe will benefit. Over the next 30
years, Wintershall and Gazprom intend
to produce a total of 200 billion cubic metres of natural gas and 40 million tonnes
of condensate from the concession: a significant contribution to Europe’s natural
gas supply.
Insights
04
05
06
Achimgaz: Drilling for gas in Siberia’s Urengoy field (04). 15 mil. cubic metres of natural gas per day
are produced at Achimgaz (05). Bird’s-eye view of the snow-covered gas processing plant (06).
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Wintershall
Corporate Responsibility Report 2015
“What is so
fascinating
about Vaca
Muerta?”
38° 12' 0'' S, 69° 30' 0'' W
On the northern edge of Patagonia lies Neuquén, a province in western Argentina. The province is not only one
of the top destinations for dinosaur researchers and wine
connaisseurs, it is also one of the main growth regions
of the country.
Insights
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Wintershall
Corporate Responsibility Report 2015
The development of one of the
world’s largest shale oil and
gas fields places great hopes.
The Argentinian desert, about 1,140 km
to the south-west of Buenos Aires,
contains one of the world’s largest shale
oil and gas reserves, the “Vaca Muerta” (“Dead Cow”) formation, at a depth
of 2,800 metres. The shale field was
named after the nearby mountain range
“Sierra de Vaca Muerta”.
Great expectations are linked to its development. The Argentinian government is hoping for independence from
energy imports, for economic growth
and jobs. Wintershall intends to set up
a centre of excellence here for production from unconventional deposits.
Enormous potential in the shale
The Vaca Muerta formation extends over
an area of 30,000 square kilometres
beneath the Argentinian provinces of
Neuquén and Mendoza.
In 1917, the geologist Hans Keidel, who
was born near Braunschweig, was roaming through the east of the province of
Neuquén on muleback when he found a
rock formation that he described as
follows: “At 1,297 kilometres from Buenos
Aires, go 1,100 metres northwards, next
to a hill and right next to a group of trees,
where I hammered in a peg.” Keidel had
discovered the first crude oil in Neuquén.
The formation is 150 to 600 metres thick
and contains, according to estimates
provided by the U.S. Energy Information
Administration (EIA), recoverable reserves of around 16 billion barrels of oil and
nine trillion cubic metres of gas. This
quantity is roughly equivalent to the entire
European oil reserves and a little more
than twice the gas reserves.
According to the EIA, the whole country
has the second-largest shale gas reserves
and the fourth-largest shale oil reserves
in the world. The feature of the Vaca Muerta formation is that the oil and gas is
located in particularly dense shale rock.
Their development, however, requires use
of the technologically relatively demanding and cost-intensive method of hydraulic
stimulation. Hydraulic fracturing is the
key technology for producing natural gas
from difficult and complex reservoirs.
Wintershall has been using this process for
30 years on conventional tight gas reservoirs, working according to the highest
environmental and safety standards.
With this production technology artificial
flow paths, known as fractures, will be
created in the reservior. And due to the enlarged contact patch, economic production rates are made possible.
“This is the starting
platform for the
Wintershall Group’s
unconventional
activities.”
Premiere for Wintershall
Wintershall Energía, which has the concession for the 97 square kilometres Aguada Federal block in the eastern part of
the Neuquén Province, has been participating in the exploration of the Vaca
Muerta formation since 2014. At the end
of 2015, the company’s share in the
project was raised from an original 50 percent to 90 percent; Wintershall’s partner
is Gas y Petróleo del Neuquén, the stateowned energy company based in the
province.
Insights
01
02
03
The Aguada Federal block in eastern Neuquén province, where Wintershall is exploring unconventional reservoirs,
is 97 square metres in size (01). The first well was drilled in 2015 (02, 03).
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04
05
06
The Wintershall activities in Argentina are controlled from Buenos Aires (04). Aguada Federal is located far away
from any civilisation and requires patience on arrival (05). Cattle breeding still plays a significant role in Neuquén (06).
Insights
This is the first time that the German
company has been the principal operator
in Argentina – a new chapter in its almost 40-year history. “This project is an
opportunity for us to develop technological expertise that can subsequently
be used throughout the world”, says
Gustavo Albrecht, Managing Director of
Wintershall Energía. “This is the starting
platform for the Wintershall Group’s unconventional activities.”
In 2015 two vertical exploration wells
that were intended to unearth vital information on reservoirs, pressure zones, and
the technologies that should be used, were
drilled. From these further horizontal
wells will be side-tracked to reach the shale
layer that promises the most oil. Overall,
the intention is to drill four horizontal wells
in the initial exploration phase in Aguada
Federal with a view to testing the cost-efficiency of production from the Vaca
Muerta formation. If they are successful,
a more extensive drilling campaign will
follow.
Project challenges also include the geographical position and the local infrastructure. “Aguada Federal is in the middle
of nowhere”, says Jorge Ponce, Completion Team Leader of Wintershall Energía.
To get to the block, you need to make
an initial two-hour flight from Argentina’s
capital, Buenos Aires, until you reach
Neuquén, the provincial capital.
Cattle breeding as well as fruit and vegetables grow in the environs of the pulsating
administrative and industrial city, and
along the river, there are modern vineyards,
which produce wines from grapes like
Pinot Noir, Sauvignon Blanc and Merlot for
the Argentinian market and for export.
From Neuquén, you travel two hours
through the rock desert. No grapes thrive
under the Auca Mahuida vulcano, which,
on the horizon, watches over Aguada Fed-
eral. Summer days are baking hot, winter
nights bitterly cold, and all the time there
is a strong wind blowing. For centuries,
only armadillos and guanacos, the wild archetype of the domesticated llama, were
at home here.
“Local employment
enables us to make
a contribution to
value creation in the
region.”
The future has a name
The region is very sparsely populated, with
an average of five inhabitants per square
kilometre, and has undergone little development in the past. However, this is
currently changing – over 20 oil and gas
producers from all over the world are
operating here.
The number of inhabitants in the small
town of Añelo, which is about 50 kilometres away from Aguada Federal, is growing rapidly. Añelo – which, in the language
of the indigenous Mapuche Indians,
means “forgotten place” – has chosen the
following motto for itself: “The future
found its place”.
The region’s oil and gas industry has
already brought 5,000 new jobs, some of
them at Wintershall: “We mainly take
on local employees”, Alfredo Armendano,
Human Resources & Administration Manager at Wintershall, stresses. “This enables
us to make a contribution to value creation in the region.”
Driving forward together
The future development of Añelo is based
on an urban development plan, the implementation of which has already begun.
The infrastructure – from electricity to
water through to new streets – is to be
brought into line with the change. Industry and policymakers are working closely
together here. Wintershall also intends
to make a contribution to the region’s development. The company already has
some experience in supporting social projects in Argentina, mainly together with
its partners.
Currently, Wintershall Energía is drafting
its first own sustainability program. It aims
at supporting local stakeholders with
the sustainable development of their abilities and skills. “At the moment, we are
in steady contact with land owners, local
administrations and government representatives as well as with other operators
in the region to ensure the correct use
of available resources for the best of the
region”, Alfredo Armendano explains.
The focus is on help for self-help. Therefore Wintershall wants to support locals
in developing their skills and competences.
The objectives that Wintershall wants
to pursue with that program are mediumterm to long-term in nature: The energy
from Vaca Muerta, the “Dead Cow”, is
expected to bring a lot of life into the
desert in future as well.
27
Responsible
Growth
Strategy and organization Management Compliance Partnerships Responsibility along the value chain Technology and innovation 29
30
31
32
32
33
Responsible Growth
We take responsibility.
The world community is facing numerous challenges: from
growing population and the accompanying rise in demand
for energy and resources to globalization through to climate change. Wintershall aims to take responsibility and to
make a positive contribution in its sphere of influence.
Strategy and organization
Our approach and understanding
Our corporate values provide the basis for our actions: We
conduct our business creatively, openly, responsibly and entrepreneurially.
Sustainability to us means combining economic, ecological and
social responsibility. We ensure that it is taken into account
in all Wintershall activities. In this way, we will not only be able to
identify and reduce risks, but also recognize and utilize opportunities, at an early stage.
Our vision and mission
We want to contribute to meeting the growing energy demand in
the most responsible way. Providing solutions for the energy
supply of the future and, in doing so, generating added value both
for us and for the society.
We want to achieve our aims by applying high standards in
all our corporate activities, using state-of-the-art, environmentally
friendly and efficient technologies and being an attractive employer, reliable partner and good neighbor.
Materiality aspects
In order to identify the aspects relevant to Wintershall and its
stakeholders, we constantly use various tools to analyze the challenges we face. These include company-internal studies and
assessments as well as findings from dialogues and workshops
with stakeholders as well as from press and community events.
Industry-specific analyses also have a part to play. The resulting
aspects, e. g. environmental protection, health, safety, employability, compliance and transparency, are reflected in this report.
Our principles
To promote sustainable development, we are guided by six principles related to economic, ecological and social aspects.
We create value for the company’s
long-term development and the society.
We provide sustainable solutions.
We minimize our ecological footprint.
We use resources efficiently.
We respect people and human rights.
We involve our stakeholders actively.
Organization
We see the steering of sustainability aspects as a strategic
responsibility with implications for the whole company. In order to
drive sustainable development forward in the company, joint
efforts, coordination of measures and continuous monitoring of
achievements are required. Mario Mehren, the Chairman of
the Board of Executive Directors at Wintershall, has taken overall responsibility for this topic. A team positioned in the Strategy
Division is responsible for development and management as well
as coordinates implementation measures, supported by a community of experts.
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Subject-specific and regional measures are in the responsibility
of dedicated divisions and operational companies. They know
the needs and expectations in their divisions and regions best and
can act accordingly.
Risk management
Wintershall is included in the BASF Group’s comprehensive risk
management system. Extensive and established planning,
approval, reporting and early warning systems are integral parts.
Management
Our risk management system aims to identify and assess opportunities and risks as early as possible; it also aims to take appropriate measures to seize opportunities and to limit business
losses. This should safe Wintershall’s long-term business success and create long-term value due to improved entrepreneurial
decision-making.
Standards
In all our activities, we follow international standards as well
as our own standards and country-specific legislation. If several
proven industrial standards exist, such as that of the International Association of Oil & Gas Producers (IOGP) or the International Association of Drilling Contractors (IADC), we apply the
higher one.
Code of conduct
The adherence to our compliance standards is part of a responsible corporate governance. Core of these standards is the
globally consistent BASF code of conduct, binding for all employees. It defines basic, globally applicable standards of conduct
and integrates them in daily business.
HSE Policy
Through the policy of Health, Safety and Environmental Protection (HSE), our company is committed to comply with central
principles. They relate to health, safety, environmental protection
and socially acceptable behavior. The principles provided by
the policy must be observed in all circumstances and have priority
over economic interests.
Human rights position
For us, any and all actions are based on respect for human
rights. As part of the BASF Group, which is one of the founding
members of the United Nations Global Compact Initiative, we
support its ten guiding principles for responsible corporate governance and human rights. Our aim is to align our internal guidelines and processes accordingly.
Management system
Wintershall has integrated sustainability aspects into the companywide Exploration & Production (E&P) management system. It
describes processes and responsibilities and defines standards
that are applicable across the company.
In 2015, the hitherto independent HSE management system was
integrated completely into the E&P management system. The
aim here is, that all HSE guidelines and procedures are being
taken into account accordingly in the respective processes.
Steering sustainability aspects
By using BASF’s method of Sustainable Solution Steering we
identify the key sustainability criteria and challenges as well as
evaluate the sustainability contribution of our activities. When
performing the analysis we consider the entire value chain as well
as regional differences. The method is also used for steering
our research and development activities.
Various economic, ecological and social aspects are assessed:
−− Economy: e. g. possibilities for cost saving or more efficiency
−− Ecology: e. g. development of environmentally friendly solutions
−− Society: e. g. increasing safety in operations or stakeholders’
acceptance
In addition, we have other tools for assessing new projects in
respect of their impact on the environment and society. These
tools are used, for example, in approval processes.
Responsible Growth
Compliance
With our Group-wide Compliance Program, we aim to ensure
adherence to legal regulations and the company’s internal guidelines. We use the world-wide binding Code of Conduct of our
parent company BASF SE, which applies to all employees of
Wintershall and firmly embeds it into daily business. Members
of the Board of Executive Directors are also expressly obligated
to follow these principles.
Compliance Program and Code of Conduct
The Compliance Program of Wintershall is based on the worldwide applicable standards of BASF SE and internationally
accepted standards. The BASF Code of Conduct includes the
topics below:
Compliance Culture at Wintershall
We firmly believe that for corporate responsibility to be a success,
there must be an active culture of living these guidelines within
the company. This culture takes years to develop, and requires
the consistent, reliable application of compliance standards.
Because the compliance codex was introduced early on, these
standards are already established and undisputed.
Monitoring adherence to compliance principles
Wintershall’s Chief Compliance Officer (CCO) manages the
implementation of the BASF Compliance Management System.
He belongs together with 4 compliance officers within our core
regions to a worldwide network of 94 BASF compliance officers
who support the BASF Chief Compliance Officer. Furthermore,
the Wintershall CCO reports to the Wintershall board regularly
on the status of the Compliance Program as well as any major
developments.
Code of Conduct
Antitrust Laws
Money Laundering
Information Protection and Insider
Trading Laws
Gifts and
Entertainment
Protection
of Data Privacy
Imports
and Exports
BASF’s Code of
Conduct stipulates
how these topics
are handled.
Human Rights,
Labor and Social
Standards
Protection of
Environment,
Health and Safety
Conflicts of Interest
Corruption
Protection of
Company Property
and Property of
Business Partners
Our efforts are principally aimed at preventing violations from
the outset. To this end, all employees are required within a prescribed timeframe to take part in basic compliance trainings,
refresher courses and special tutorials. Training takes place in different formats, including face-to-face training, e-learning or
workshops.
We particularly encourage our employees to actively and promptly
seek guidance if in doubt. For this, they can consult not only
their managers but also dedicated specialist departments and
company compliance officers. We have also set up external
hotlines worldwide which our employees can turn to anonymously.
We make sure that all concerns are processed and answered
within a short amount of time.
At Wintershall a compliance dialogue is conducted annually,
thereby the CCO and the division heads of selected operational
units discuss in form of a structured interview business-specific
compliance risks. Objective is to identify specific risks with regard
to region and task and then determine appropriate risk management measures for both current and future business environment.
On April 1, 2015, we have adapted and introduced a new global
standard of BASF SE, “Directive of Partner Due Diligence”.
Based on this directive all business partners in the sales area will
be checked regarding possible compliance risks. The assessment is performed via checklists, questionnaires to the counterparts as well as internet-based evaluations. The outcome of
the review is documented. In addition, we also insist that our suppliers know and consider our global Supplier Code of Conduct.
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German-Russian partnership: Achimgaz Deputy Director General Ingo Neubert (left) and Achimgaz Director General Oleg Ossipovich in front of a drilling
rig in the gas field of Novy Urengoy, Siberia.
For over half a century we have been active in Libya. Times, in which we have
built up longstanding partnership and good community relations.
Partnerships
project aims to build two additional offshore pipelines from Russia
to Germany with an overall capacity of 55 billion cubic metres
of natural gas. The project builds on the successful experience of
Nord Stream.
Taking responsibility with our partners
Collaborations and partnerships help to solve challenges and
further develop. We are working on that especially with our partners such as Gazprom, Statoil and the Abu Dhabi National Oil
Company (ADNOC). The focus thereby varies. We cooperate,
for example, with Statoil and ADNOC on research and development topics such as the enhanced oil recovery (EOR).
Especially national partners expect an environmentally and
socially compatible approach. They are interested in companies
making a contribution to solving national challenges. We are
aware of our responsibility and contribute with infrastructure projects, for example the construction of a health centre in Libya.
In addition, we work closely together with our parent company
BASF in developing sustainable solutions in the internal research and development network.
Together secure supply
Wintershall also contributes to a secure supply of energy with
natural gas in Europe with its participation in the Baltic Sea pipeline Nord Stream and the onshore pipeline links OPAL and
NEL. Moreover, Wintershall intends to take part in the expansion
of Nord Stream together with other European partners. The
Responsibility along the value chain
Our intention
In line with our own standards, we expect our business partners to act responsibly in relation to people and the environment.
That is why Wintershall’s criteria for selecting suppliers and
contractors are not only economic in nature. We also assess existing and new supply relationships in terms of compliance,
environmental protection, safety and compliance to social standards. To us, sustainability-oriented management of the supply
chain also means raising our suppliers’ awareness of our expectations and standards.
Code of Conduct and standards for suppliers
In addition to our Terms and Conditions of Purchase, our “Supplier Code of Conduct” describes what we expect from our
suppliers in concrete terms. This Code of Conduct is based on
the principles of the UN Global Compact and the conventions
of the International Labour Organization (ILO). It comprises environmental protection, compliance with human rights, labor
and social standards as well as discrimination and corruption.
Responsible Growth
At the heart of the steam flooding facility: Since 1981, Wintershall has been
optimizing recovery by using steam flooding.
Extracting more oil gains in importance for the E&P Business. Therefore
Wintershall is cooperating with BASF on different research projects on Enhanced Oil Recovery.
Additional standards for security personnel
Further requirements apply to our security workforce, which
we have defined in our Principles for Deploying Security Personnel. For example, these principles include relevant human
rights aspects for the security of respective locations, e. g. the
right of freedom and security of people.
Technology and innovation
Initiative for sustainable procurement
Wintershall participates in the initiative “Together for Sustainability”, co-founded by BASF. The aim of the global program for
responsible procurement of goods and services is to ensure
compliance with international accepted environmental and social
standards of our contractors.
Implementation of standards
Wintershall uses various inspection measures to ensure that suppliers and contractors observe the sustainability standards.
Thereby we have a detailed sustainability assessment on selected
suppliers and contractors, sub-divided by country and product risks. Measures range from voluntary information, presentation
of relevant certificates to on-site audits.
Our business success is primarily based on technological expertise. It also provides a competitive advantage in terms of access to new fields. Our portfolio of technologies is wide-ranging,
as our aim is to have the right solution for each technological
challenge.
Some of these technologies are already proven and tested
methods, such as steam flooding and hydraulic fracturing. We
also boast many years’ experience in the field of horizontal
wells, which are required for developing complex reservoirs of
tight gas and gas condensate.
Innovativeness is a key aspect of future viability. That is why we
also look into innovative technologies. Thereby we focus on those
research and development projects that enable efficient production and careful use of resources. Current examples include
the development of environmentally friendly polymers to improve the recovery factor. However, we also concentrate on the
development of smart solutions for general challenges with
our partners.
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Interview
Low oil prices: causes, IMPACTS and risks
Heiko Meyer, Vice President Strategy &
Portfolio Management
Since mid-2014, the oil price has more than halved. What are the reasons for this development?
Oil prices have fallen from more than US $ 100 to less than US $ 40 a barrel (bbl) within one year.
Thereby, we see this slump in oil prices as being supply-induced, as we are confronted by an
over supply of oil on world markets, in particular, due to the rise in global production, especially
shale oil production in the USA. At the same time, the Organization of Petroleum Exporting
Countries (OPEC) did not, as in the past, respond to the price erosion by reducing production
volumes. Also atypical is that geopolitical conflicts are having only a minimal stabilizing effect on
prices. In addition, poor economic data from China are also having a negative impact on energy
prices.
What impacts are caused by this trend?
The International Energy Agency continues to expect a rising demand for oil and gas. However,
the investments necessary to cover the future demand are not being made with current price
levels or being reduced. This may result in significant shortfalls in supply in future. Our industry
is under great pressure, and we expect the market to consolidate. Furthermore, a number of
producing countries are heavily dependent on oil revenues. As a result of the low revenues, their
budget deficits, and hence the risk of crises, rises.
If we consider the goal of limiting global warming to less than 2 degrees – a goal that
was agreed at the end of 2015 at the United Nations Climate Change Conference in Paris –
what does a low oil price mean in this context?
With regard to climate protection efforts, there are two aspects. On the one hand, the low price
reduces incentives for using energy efficiently. On the other hand, the fact that together with the
oil price also gas prices are falling in many places means that there is enormous CO 2 saving
potential. Natural gas is becoming more competitive and a switch from coal to natural gas will
have a positive impact on climate, which is currently impressively observable in the USA.
And what does the current oil and gas price development mean for Wintershall?
Well, we are assessing all investment and exploration projects even more intensively and focusing
the employment of capital only on those activities that are economically most attractive. A crisis, however, also always means an opportunity to optimize processes and to focus on essentials,
thereby increasing efficiency in the long term.
Responsible Growth
Economic performance *
Overview total production, sales
to third parties, profit from operating
companies (EBIT)
Total production
26 %
Crude oil
2015
74 %
Natural gas
in MMBOE ( million barrels of oil equivalent)
153
136
2015
2014
Sales to third parties
Profit from operating companies (EBIT)
in € million
2015
Development characterized by portfolio changes as well as low oil and gas
prices
in € million
2014
12,998
1,072
15,145
1,688
2015
2014
In 2015, Wintershall and its subsidiaries were active in the exploration & production and natural
gas trading, storage and transport business sectors.
At € 12,998 million, sales to third parties were € 2,147 million lower than in 2014. This was primarily attributable to the asset swap with Russian company Gazprom executed at the end of September 2015; the consequence of which was the loss of contributions from the gas trading
and storage business and from Wintershall Noordzee B. V. in the fourth quarter of 2015. The significant drop in the price of oil led to slightly lower sales in the Exploration & Production business
sector. However, sales were positively impacted by a volumes increase in both the Exploration &
Production and Natural Gas Trading business sectors. At € 1,072 million, the income from operations (EBIT) were € 616 million lower than in 2014. Wintershall was able to raise oil and gas production significantly, by 13 percent to 153 million barrels of oil equivalent (boe).
* The information on the financial aspects is based on the requirements of International Financial Reporting Standards (IFRS).
35
Responsible
Operations
Safety Environmental protection and energy management Climate protection and emissions Employees 37
41
44
46
responsible Operations
We protect natural resources and
use potentials.
Safety, environmental protection and motivated employees
are important for our long-term success. We therefore
assess prior to the beginning of our activities possible impacts on people and the environment and are constantly
working on reducing negative ones. In addition, our success
is based on the commitment of our employees. Therefore
we strive to offer our employees a secure and attractive workplace.
Safety
We apply high safety standards globally, use state-of-the-art
technology and train our employees as well as our contractors to
minimize risks to people and facilities.
In order to ensure safety, prevention is a priority. Binding requirements and methods concerning occupational and process
safety are therefore defined in our company-wide management
system of health, safety and environmental protection (HSE).
Compliance with respective requirements and its effectiveness
are regularly reviewed through audits.
In 2015, we examined and updated the HSE management system in respect of new processes, guidelines and external
requirements. Additionally, we introduced BSCAT (Barrier-based
Systematic Cause Analysis Technique), a methodology for analysis of the causes of incidents and near-misses company-wide.
Process safety
The facilities used for the exploration and production of hydrocarbons comply with high safety standards. To achieve this, we
use the same demanding safety criteria as a basis throughout
the world and invest constantly in new facilities as well as modernize existing ones.
Multi-stage safety systems
All Wintershall’s offshore installations have a multi-stage barrier
system, which ensures safe operation. This comprises technical measures for the prevention and detection of potential discharges; facilities for controlling respective damage scenarios
such as fires or explosions; measures to minimize the impact of
such scenarios and technical facilities for ensuring safe evacuation. Each barrier consists of several safety devices and elements,
which are specified in respect of functionality, reliability and
resilience. If one barrier fails, the next one becomes operable,
thereby ensuring the installation’s overall integrity even if one
or more elements fail.
For each new facility, Wintershall prepares a tailor-made safety
concept, which takes all important aspects into account. The
development of such concepts is supported by an HSE-specialist. Based on this, we define respective safety measures. Existing facilities are regularly updated.
Occupational safety
Wintershall strives to create a safe working environment. We
regularly raise employees’ and contractors’ awareness of risks.
Also in 2016, our goal is to avoid any incidents. Against this
background, we are constantly working to improve our occupational safety performance.
Safety measures
Our company uses a range of instruments and measures to
continuously improve occupational safety. Among them are global guidelines and requirements, such as those relating to risk
assessments for workplaces or for the use of personal protective
equipment.
Occupational safety is a core component of day-to-day activities, which is why safety meetings, emergency response training
programs, awareness-raising workshops and seminars for employees and contractors take place frequently at all sites. Wintershall regularly carries out emergency response exercises, both
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Corporate Responsibility Report 2015
offshore and onshore. Our employees receive intensive instructions and trainings in all matters relating to safety. For example,
all offshore employees must complete a survival-training program
every four years.
Performance 2015
The incident figures, especially those of our contractors, rose in
2015 compared with the previous year. Overall, there were 9
lost time injuries (own employees: 1, contractors: 8). The lost time
injury frequency (LTIF) was 0.97 in 2015 (own employees:
0.21, contractors: 1.75). The total recordable incidents frequency
(TRIR) was 4.19 (own employees: 1.27, contractors: 7.22).
This also includes minor incidents.*
The figures illustrate that occupational safety cannot be ensured
by high standards alone: A proactive safety culture is also extremely important. Wintershall responded to the changes in incident figures by initiating a global safety campaign in the fourth
quarter of 2015. For this, all employees took a time-out for safety in November. Small teams developed specific proposals on
how to improve safety in their own working environment. Additionally, managers assessed the topic of safety culture and their
own function as role models. In 2016, the discussed proposals
need to be translated into action.
Contractor management
Many projects in the oil and gas industry are unimaginable without the support of external experts. That is why Wintershall
uses contractors in various areas. The company bases its selection of contractors on strict criteria.
In 2015, Wintershall revised and optimized the pre-qualification
requirements for global projects to increase its ability to identify specific risks from the outset and respond to them in a more
comprehensive way. When it comes to compliance with HSE
standards, Wintershall places the same high requirements on its
contractors as on its own employees. As in the last few years,
we will continue with information events for our contractor companies. The aim is to provide contractors with information and
instructions regarding our HSE requirements, give specific recommendations and thereby improve the HSE performance.
Key Performance Indicators Occupational safety
Wintershall Employees
Employees 1 and Contractors
2015
2014
2015
2014
2,000
2,715
2,009
1,888
4,737,221
4,682,160
4,571,335
4,294,234
Fatalities (FAT)
0
0
0
0
Injury with > 1 day lost time (LTI)
1
2
8
2
0.21
0.43
1.75
0.47
Working hours 2
Lost Time Injury Frequency per one million working hours (LTIF)
Total Recordable Injury Cases (TRIC)
Total Recordable Injury Rate per million working hours (TRIR)
1
2
Contractors
6
9
33
29
1.27
1.92
7.22
6.75
015 figure excluding employees from the divested natural gas trading and storage activities and Wintershall Noordzee B. V.
2
2015 figures working hours of all own-operated activities, including working hours of employees and contractors from the
divested natural gas trading and storage activities until September 30.
* All data and input figures presented in this report meet national and international standards in the E & P industry. As a member of the International Association of Oil and Gas Producers (IOGP) and the German oil and gas industry association,“Wirtschaftsverband Erdöl- und Erdgasgewinnung e. V. (WEG)”,
Wintershall uses the definitions of both internationally recognized associations when compiling data.
responsible Operations
Activities 2015
Initiative “Tipping Kills”
The initiative “Tipping Kills” – a joint campaign of Wintershall, ExxonMobil, the German Oil and Gas Industry
Association and Lower Saxony’s Road Safety Association advocates more safety in road traffic, in particular the
potential dangers of using a mobile phone while driving.
German Social Accident Insurance Institution for raw materials and chemical industry awarded the project with Germany’s most prestigious occupational safety prize. Thereby the jury particularly praised the close collaboration
between all partners in a campaign that transcends the
boundaries of participants’ own companies.
Risk Assessment
Our subsidiary in Argentina has transported a complete
drilling rig over a distance of more than156 kilometres to a
new location without any accidents. A large part of the
route consisted of gravelled road. Wintershall Argentina
had used a special road risk assessment to prepare the
transportation, which took 9 days in total. With this method,
hazard and accident zones will be detected in advance
and preventive measures and plans can be developed.
Emergency exercise
Wintershall Norge ran an Emergency Response Exercise,
simulating a disaster on board of the Borgland Dolphin drilling rig in the Norwegian North Sea. Rescue and
crisis intervention teams as well as representatives of
local communities also participated in the exercise as it
would be the case in a real emergency case.
Safety courses
Despite the current low level of activities in Libya, Wintershall is striving to safeguard the skills and abilities of its
employees in Libya. That is why several exercises took
place again in 2015. To ensure that our Libyan employees are able to handle the gas processing plant in Jakhira,
as soon as operations can be resumed, a training course
on a simulator was held. Due to the current political situation the plant is out of service since July 2013. Another
example is the fire-fighting training that the Emergency Response Team of our Libyan sites completed in Malta.
The focus of the three-day training course was on the orientation in the midst of extreme smoke or heat as well
as on rescuing injured persons.
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The safety days in Stavanger and Bergen focused on the right behavior in case of an emergency. Our HSE experts, the local fire department,
the Norwegian air rescue as well as our partners provided useful information and practical tips on the subject of health and safety at work and at home.
Emergency and crisis management
A clearly defined and interdisciplinary crisis management system
contributes to emergency preparedness and crisis resolution.
Emergency response plans and regular exercises ensure that the
right response is made at any time and at any place in the
event of an emergency. This applies not only to fire-fighting, but
also to other emergency situations such as the uncontrolled
escape of oil or gas.
In trainings, our HSE specialists raise employees’ awareness
of potential risks and prepare them for emergency situations. In
addition, we train processes with employees, contractors and
authorities and check our emergency systems at regular intervals.
Site security and information protection
Protection of our business activities and our employees from
potential, imminent or existing hazards and risks is one of our core
interests. At the same time, we take measures to ensure the
security of our data and our know-how. Our globally uniform security concepts create the necessary framework for this. In countries with a higher security risk, in which political or social unrest
can suddenly change everyday life, we inform business travellers and local employees about appropriate protective measures
and consult them individually, if needed.
Production in Libya significantly cut back
Because of the tense security situation in Libya, Wintershall had
pulled out all international employees in mid-2014. Wintershall
had already to halt oil production in onshore concessions 96 and
97 since mid-2013, due to blockades of the export infrastructure. However, when the infrastructure was available colleagues in
the Libyan desert demonstrated our short-notice production
capacity. Wintershall’s office in Tripoli is used only to a very limited
extent at the moment, our employees are predominantly working from home. Wintershall constantly monitors the situation in
Libya. The security of our employees, their families as well as
of the production facilities is of the highest priority.
responsible Operations
Environmental Protection and Energy
Management
Wintershall is conscious of its responsibility for the environment. Through clear specifications and systematic management,
we aim to reduce risks to people and the environment. We
rely on technical innovations and apply high standards to use resources efficiently and reduce emissions and waste largely.
Before starting any of our activities, we carefully assess the potential impacts in order to minimize negative ones.
Management systems
Our company uses a global Health, Safety and Environmental
protection (HSE) management system, which also includes all
aspects that are important to environmental protection and
energy management. It ensures clear structures, processes and
responsibilities and is adjusted to local conditions at all sites.
This enables us to ensure that we use resources efficiently everywhere and comply with environmentally relevant laws and regulations. Additionally, we are committed to our own and international standards.
We constantly raise awareness for the topics linked to environmental protection and efficient energy use among our employees at all levels of the company and maintain a constant dialogue with them to impart the objectives of environmental and
energy management. In addition, we provide detailed information through guidelines and training courses.
We use regular internal audits to review our performance and
analyze the effectiveness of measures taken. A company-wide
network, in which environmental experts from all sites are represented, is devoted to improve the environmental performance
and to address relevant environmental topics.
Wintershall has set itself the goal of having the HSE management system certified according to international standards ISO
14001 (for environmental management) and ISO 50001 (for
energy management) at all sites by 2020. This will enable us to
raise the quality of the management system as well as legal
certainty. Our German sites are already certified to ISO 50001
standard, while those in the Netherlands are certified to ISO
14001. The management systems of our Russian joint ventures
Achimgaz and Severneftegazprom are likewise certified to
ISO 14001. At our other sites, certification of the environmental
and energy management systems is still being prepared or
implemented, respectively.
Resource efficiency
Wintershall uses resources efficiently to minimize consumption
and to prevent waste, where possible. This applies to exploration
and production as well as to our administrative sites.
Water
During the exploration and production of oil and natural gas
water from a variety of sources will be used: reservoir water, production water and waste water. Wintershall therefore uses
innovative technologies (e. g. recycling of drilling fluids) and recycles water in order to minimize water consumption.
Each of our relevant sites has a water protection concept. At
these production sites, in particular, we conduct systematic risk
assessments to minimize risks on the water pathway. In water
stress areas, we carry out early-stage analysis of savings potential to minimize water consumption.
Overall, we used 28.9 million m3 of water in 2015 (2014: 29.6
million m3). Most of this was reservoir water, which is a co-product of the production of hydrocarbons. Its volume was 13.9
million m3 (2014: 15.3 million m3). We used separator systems to
separate around 9.8 million m3 of the reservoir water from the
crude oil and natural gas at the surface, cleaned it and fed it back
to the reservoir.
Production water from our offshore plattforms (totalling 17.5 million m3) we discharged, after cleaning, into the sea in compliance with the legal threshold limits. Furthermore, around 13.1 million m3 of cooling water and 1.5 million m3 of other forms of
waste water were produced. They originated, for example, from
the construction and operation of a cavern storage facility;
from cleaning activities as well as from other sources.
At locations where Wintershall is not connected to the public
waste disposal network, waste water is cleaned and disposed
professionally and in line with regulations.
Water
in million m 3
28.9
29.6
2015
2014
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Waste management
Waste can be generated during the exploration and production of
crude oil and natural gas as a result of production processes.
Unavoidable waste is recycled and disposed according to regulations. This goes as far as the reuse of complete offshore platforms in the Dutch North Sea, which we re-deploy elsewhere when
production ceases.
In classifying waste as well as storing, treating, transporting
and disposing, we follow the applicable national legislation and
additionally comply with international as well as our own standards. Wintershall recovers and disposes waste in an environmentally compatible and appropriate manner even in locations in which there is a lack of corresponding public or private
disposal possibilities.
In 2015, waste at Wintershall totalled 93,097 tonnes (2014:
52,631 tonnes). Of this total, 63,302 tonnes were hazardous waste
(2014: 26,653 tonnes) and 29,795 tonnes non-hazardous
waste (2014: 25,978).
Waste
in t
The waste volumes rose in 2015, particularly due to an increase
of drilling operations in Russia and the decommissioning work
at sites in Barnstorf and Bockstedt in Germany. The classification
into “hazardous waste” and “non-hazardous waste” is in line
with European regulations.
We recovered about 43.9 percent of waste as material or as
energy, 26.7 percent was incinerated and 29.4 percent landfilled
in accordance with regulations.
Biodiversity
Among the regions in which we operate are sensitive protected
areas such as the German Wadden Sea. Before carrying out
new projects, we conduct risk assessments and studies to clarify the potential impacts on the biodiversity and the environment. During our activities, we ensure that our projects do not
have an adverse effect on sensitive ecosystems or endangered
species.
Wintershall’s former drilling mud landfill site in Emlichheim, Germany, for example, was successfully recultivated in 2015 as
part of a total clearance. A grass landscape with water areas
and gravel islands was created on a surface area of around
50,000 m 2. The area is now used for nature conservation and
environmental protection purposes.
93,097
52,631
2015
2014
Hazardous waste / Non-Hazardous waste
29,795 tonnes
(32 % )
non-hazardous waste
2015
63,302 tonnes
(68 % )
hazardous waste
Since 2003, Wintershall has already invested more than 60 million
euros in remediation and recultivation of former landfill sites
in Germany in an environmentally friendly and landscape-friendly
manner. Thus, for example, the former landfill site in Bohlsen
is nowadays an ecological niche for threatened and endangered
small animals and insects. It contains breeding places for woodlarks, tree pipits and blue-headed wagtails as well as forage and
egg deposit areas for insects like the black-veined white, painted lady, water betony or the small fritillary.
responsible Operations
Combined heat and power is one of the most efficient forms of generating
energy in terms of using resources sparingly and minimizing harmful emissions.
L6-B is the first unmanned mini-platform by Wintershall. The platform has
started to produce natural gas since 2015. Because of the connection to other
platforms it functions in a low emission and resource-saving way.
Energy efficiency
We use energy in various forms at our sites and in the course of
our activities. Therefore we have to ensure that such use is
efficient, in order both to protect the environment and to reduce
energy costs.
Depending on the location of our production facilities, we obtain
electricity from the public grid or produce it ourselves at remote sites. Wherever appropriate, we use micro gas turbines or
combined heat and power (CHP) plants.
To achieve this, we have set ourselves the ambitious goal of
implementing a comprehensive energy management system at all
our sites by 2020. This will enable us to review and continuously improve our energy-related performance. A certified energy
management system will ensure, in a transparent manner verified by independent external experts, that our facilities’ use of
energy is efficient and hence environmentally friendly. Additional
energy-saving ideas made by employees via the company’s
suggestion system are implemented.
Energy
Energy consumption in MWh el
546,900
498,511
Steam use in t
492,552
507,288
2015
Our German sites are already certified according to ISO 50001,
while certification of the energy management system at other
sites is being prepared or implemented, respectively.
In 2015, we used a total of 546,900 MWh of electrical energy and
492,552 tonnes of steam for our processes. We use electrical
energy, for example, to drive our pumps and compressors. We
need thermal energy in the form of steam for crude oil production.
2014
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Climate Protection and Emissions
Emissions of other substances into the
atmosphere
Climate change is one of the main societal challenges. As a company with global operations, we therefore also assume co-responsibility for global climate protection. By using modern technologies and processes, we reduce emissions and hence the
impact of our business activity on the environment.
As a wholly owned subsidiary of BASF SE, Wintershall reports, in
accordance with BASF’s Responsible Care Reporting Guidelines, on environmental emissions arising during the production
of crude oil and natural gas. As a member of the International
Association of Oil & Gas Producers (IOGP), we have also been
explaining our emissions in the IOGP’s “Environmental Performance in the E&P Industry” report since 2006.
In addition to emissions of greenhouse gases, we also determine
the emissions of inorganic gases such as carbon monoxide
(CO), nitrogen dioxide (NO 2) and sulphur dioxide (SO 2), as well as
other substances. These are attributable, in particular, to the
combustion of natural gas, heating oil, and diesel to generate
power. In 2015, emissions of inorganic substances rose to
3,883 tonnes (2014: 3,612 tonnes).
Emissions of other substances into the atmosphere
in t
2015
2014
2013
Inorganic substances
Emissions of greenhouse gases
Our business activities give rise to emissions of the following
greenhouse gases: carbon dioxide (CO 2 ), nitrous oxide (N 2O)
and methane (CH 4). The extent of such emissions depends
on the nature of our activities: For example, whether the projects
involve development of new fields, construction of connection
pipelines or maintenance and repair works affects the quantity of
greenhouse gases.
In 2015, Wintershall emitted 17 percent more greenhouse gases
than in 2014. The largest share represents CO 2 emissions with
1.28 million tonnes (2014: 1.06 million tonnes). In terms of Wintershall production of crude oil, natural gas and condensate,
this is equivalent to a specific emission of 0.06 tonnes of CO 2
per tonne of oil equivalent (toe). Moreover, following emissions
of other greenhouse gases were produced: 5,080 tonnes of CH 4
(2014: 4,427 tonnes of CH 4) and 20.7 tonnes of N 2O (2014:
19.5 tonnes of N 2O). The increase in the emission of greenhouse
gases is mainly due to the increase of production in Norway
and Russia.
Sources of emissions
in t
2015
2014
2013
913,712
746,426
954,898
57,199
60,755
103,390
309,685
254,896
309,649
5,080
4,427
4,185
Source of CO 2 emissions
Production processes
Indirect
(import / export of electricity / steam)
Direct
(electricity and steam production)
Source of CH 4 emissions
Production, undifferentiated
Total inorganic substances
3,883
3,612
3,358
Carbon monoxide (CO)
1,341
1,203
1,403
Nitrogen oxides (NO X ) as NO 2
2,317
2,164
1,717
225
245
237
2,237
1,959
1,633
42
38
26
Sulphur oxides (SO 2 + SO 3 ) as SO 2
Organic substances
Non-methane volatile organic
substances (NMVOC)
Other substances
Particular matter
Emissions trading
Across Europe, seven plants in our group are subject to legal requirements of emissions trading. They include three production
platforms in the Netherlands and the Norwegian production platform, Brage, as well as the sites in Germany.
In 2015, our plants were allocated 324,209 emissions allowances
(EUA / a) and they emitted a total of 468,451 tonnes of CO 2.
responsible Operations
Climate protection
For example in Libya the associated gas is used for the operation of the drilling facilities as well as power generation.
“No Flaring” – Use of Resources
One of our most effective climate and
environmental protection measures
is, that we as operator stopped flaring
of associated gas in routine operations since 2012.
Wintershall is convinced that the E&P industry can also make a contribution to the reduction
of emissions. Since 2012, as operator we have stopped flaring of associated gas in routine operations. All existing plants have already been retrofitted; the utilization of associated gas is being
directly planned for new plants. We use the associated gas to produce electricity, heat and steam.
Depending on the site, this energy is used for the oil production or for the supply of private
households. By doing so, Wintershall meets the international standards for the environmentally
friendly production of crude oil. In own operated assets flaring is only allowed in exceptional
cases, for example when testing a well or as part of maintenance and repair works, in order to
comply with our safety standards.
In order to underline our commitment, Wintershall, as the largest internationally active German
producer of crude oil and natural gas, joined the World Bank’s “Zero Routine Flaring by 2030”
initiative in December 2015.
The aim of the “Zero Routine Flaring by 2030” initiative, which was launched by the World Bank
together with UN General Secretary Ban Ki Moon, is to end the worldwide flaring of associated
gas during routine operations by 2030. Members include governments, oil producers and development organizations. Each year, around 140 billion cubic metres of associated gas are flared
worldwide during oil production. That corresponds to around 30 percent of the gas consumed
each year in the EU. At the same time greenhouse gases are also released: more than 300 million tonnes of CO 2 worldwide. By joining the World Bank initiative, Wintershall wants to encourage
more companies and countries to participate. We are convinced that eliminating associated
gas flaring can make an important contribution to mitigating climate protection.
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Employees
Employee age structure
People come first at Wintershall. After all, only healthy and motivated employees can be productive and creative. In this way,
they make a significant contribution to the company’s economic
success.
Up to and including 25 years (M = 4 %, F = 2 %)
124
Between 26 and 39 years (M = 23 %, F = 14 %)
745
Between 40 and 54 years (M = 26 %, F = 12 %)
769
Global labor and social standards
55 years and up (M = 15 %, F = 3 %)
In our interactions with our employees, we adhere to the applicable national legislation and to the core labor standards of the
International Labour Organization (ILO). In addition, we organize
working conditions worldwide in line with our self-commitments, the OECD guidelines for Multinational Companies and
with local requirements.
Employment and strategy
As the largest internationally active German crude oil and natural
gas producer, Wintershall employed 2,000 employees worldwide at the end of 2015, 32 percent of whom were female and
68 percent male. Due to the asset swap with Gazprom the
overall figure has fallen by 26 percent compared with the previous
year. Thereby the largest share derives from Europe.
362
Male (M)
Female (F)
Our employment strategy is derived from our corporate strategy
and simultaneously contributes to the achievement of our goals.
We focus on three directions: outstanding employees, outstanding
managers and outstanding working conditions. Therefore, we
present ourself as an employer who promotes the career development and lifelong learning of employees and managers in all
regions. Furthermore, we seek to offer our employees a safe and
attractive working environment.
The chapter “Employees” refers to employees active in a company within the BASF Group scope of consolidation as of December 31, 2015.
Employees *
As of December 31, 2015
Training and career entry programs
2,000
2,715
2015
2014
In the global competition for the best employees and managers, we want to recruit qualified talents at a very early stage. We
therefore offer university graduates special career entry programs. These cover both technical (SPEAD) and commercial
areas (START IN). In 2015, 35 young employees took part in
our programs in Germany.
Proportion of women in the total workforce
32 %
Female
2015
68 %
Male
We also offer students internships in different divisions of our
company. In addition, they can prepare practically oriented theses
in various subject areas at Wintershall.
Moreover, in Germany, Wintershall trains young people as mechatronics engineers, mining technologists and electronics engineers, industrial business management assistants, chefs and
restaurant specialists. A total of 52 people were being trained
at the end of 2015.
* 2015 figure excluding employees from the divested natural gas trading and storage activities and Wintershall Noordzee B. V.
responsible Operations
Work-life Management
Apprentices and Entry programs
As of December 31, 2015
Apprentices
52
SPEADS (32) and START IN (3)
35
Career development and lifelong learning
We can meet new challenges successfully if our employees and
managers recognize the importance of lifelong learning and
continually develop their knowledge and skills. We therefore attach great importance to individual further development.
In the annual employee appraisal, employees and managers
outline prospects for individual professional development together.
The concept of development paths assists us in highlighting possible career models across the company. Combined with
needs-oriented further training, this enables us to meet external requirements.
Diversity
Mixed teams work more successfully. Wintershall, as a company
with global operations, therefore focuses on diversity, both
in competition for specialists and in its day-to-day activities. We
consciously aim to benefit from the different outlooks that our
employees contribute on account of their different nationalities,
cultures, generations, genders and experiences.
Our employees hail from over 50 nations. Most of our managers
abroad are locals. We promote our cultural diversity through,
for example, worldwide staff assignments and intercultural skills
training.
About 19 percent of our management positions are currently
held by women. We want to help our parent company, BASF,
achieve its self-defined goal of increasing the proportion of
women in management positions to between 22 and 24 percent
by 2021. We do not use a quota system in pursuit of this goal;
instead, we organize everyday work in such a way that career and
family life can be combined as easily as possible.
A work-life balance is important in maintaining performance and
motivation. Wintershall offers employees a high degree of flexibility through adjustable working time models, such as part-time
working, teleworking and job-sharing. This opens up many
possibilities for finding an optimum balance between professional
and private obligations.
In addition, we support our employees at all our sites through
tailor-made measures and programs to further improve their
work-life balance. These include for example sport programs,
assistance for child care and common social events.
Health management
Occupational safety and health protection are not only part of our
social obligation, but also make a contribution to securing
the company’s future.
We focus on three key areas: occupational health prevention,
health promotion and medical care in the event of emergencies.
In order to ensure first aid in an emergency, 814 first-aiders
and paramedics, who hold a nationally recognized certificate in
first aid, are deployed at all Wintershall’s sites.
Depending on local requirements, our sites place different emphases in organizing health management programs. These range
from preventive medical examinations to health promotion activities. To force compliance with our health and safety standards, we
conduct audits on a regulary basis.
The results of our health protection activities were again positive
this year. As it was already the case in previous years, no employee succumbed to an occupational illness in 2015. Furthermore, we performed 862 medical examinations as well as
numerous health activities, such as health seminars, to promote
the awareness among our employees.
As a globally active company, Wintershall fully prepares its
employees for trips and assignments abroad. Our company physicians provide intensive travel medicine care for employees
posted abroad, including the required vaccinations. Special HSE
checklists and hazard assessments for each site complete
the preparation. In remote areas, where the local medical infrastructure does not meet international standards, Wintershall
provides to medical care by a company physician or a certified
establishment.
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At all Wintershall sites regularly staff meetings take place and therefore provide
the opportunity to engage in an active dialogue.
Mario Mehren, Chairman of the Board of Executive Directors, met with twelve
employees to share experiences.
Dialogue
Employee survey
Wintershall conducts global employee surveys every three years.
These surveys involve issues like health, diversity, leadership
and further development. Employees and managers in all regions
discuss the results together and formulate measures for improvement.
The ideas, abilities and experiences of the people that work for
us are an important resource for our company. Wintershall
therefore maintains an active dialogue with employees and employee representation at all levels. The reciprocal communication is based on honesty and respect.
Collaboration with employee representatives
Employer and employee representatives maintain an open and
trusting dialogue at Wintershall. Our company respects trade
union freedom of association and the right to collective bargaining.
It is our understanding that co-determination helps employees
to assume co-responsibility for the mid-term to long-term development of the company as a whole.
Dialogue between employees and managers
Wintershall continually holds staff meetings and provides information about current developments and organizational changes
through events or on the company intranet.
Employees also have a regular opportunity to evaluate their line
managers directly. This provides our managers with important
feedback about their personal strengths and areas in need of attention, enabling them to optimize their leadership behavior
accordingly, with a view to responding better to employees’ needs.
More than 60 percent of the workforce took part in the companywide employee survey conducted in June 2015. It revealed
that employees were generally very satisfied, but also provided
concrete pointers to areas that we can optimize. What is particularly pleasing is that most employees would recommend Wintershall as an employer.
Further information about employment under
www.wintershall.com / career.html
responsible Operations
Mission Nutrition –
our global health campaign
Nutrition is crucial to maintaining health and work capacity. Our global health campaign in 2015, entitled “Mission nutrition – Healthy nutrition” took account of this.
Our aim was for our employees to develop more awareness of what does and does not do them good in terms of
their nutrition – whether at lunch in the canteen, cooking at home, choosing drinks or snacking while out and
about. The campaign took into account the fact that
the regions in which our company is represented have different culinary traditions.
Part of the campaign, for example, involved talks about
healthy nutrition and correct nutrition under stress. There
were also individual offerings; for example, employees
were able to have their blood sugar and cholesterol levels
measured and obtain personal tips about nutrition as
well as medical advice. At the same time, all company canteens had healthy campaign meals on the menu.
As part of the global health campaign, the canteen in Kassel, Germany, offers additionally “vital plus” meals.
49
Responsible
Cooperation
Dialogue Social commitment 51
55
Responsible Cooperation
We rely on open cooperation.
Wintershall sees itself as a responsible member of society.
Broad acceptance of our activities is the basis for our
corporate success. That is why we foster an intensive exchange with our stakeholders and become involved in
the regions in which we operate.
Dialogue
Wintershall is in constant dialogue with various stakeholders. These
include all people and institutions that are potentially affected by
our activities, have an interest in our company’s business success
or exert an influence on it. Amongst our relevant stakeholders
are neighbors, authorities and political decision-makers, industry
associations and networks, media, academic institutions as
well as our employees and business partners.
In general, there is a constant increase in expectations in terms of
transparency and involvement. We therefore provide regular
and comprehensive information about our company’s activities. We
seek to understand the concerns and positions of individual
stakeholders. This exchange helps us to identify trends at an early
stage and to respond to them accordingly. The form and
intensity of individual measures varies, depending on the respective target group, the location and specific topics.
Partners
We are in a constant dialogue with our business partners to ensure that we are able to meet the challenges of the future together.
The Scientific Technical Cooperation has been an important dialogue forum with our Russian Partner Gazprom since 1992.
Within the framework of this program, we have been addressing
many issues from efficient oil and gas production to environmental protection and process safety. In 2015, the focus was the
further development of the corporate safety culture.
In addition to this institutionalized forum, numerous other topicspecific activities take place. For example, on the initiative of
our subsidiary Wintershall Russia a workshop took place where
experts for health, safety and environmental protection (HSE)
discussed possible further developments of the HSE management systems and HSE measures.
In Norway, the HSE Brage Forum, a format launched in 2014 to
intensify the exchange with our contractors, was held again in
2015. It contributes to the continuous improvement of HSE performance on the Brage production platform.
Media
Our traditional dialogue format with the media is the annual press
conference. In 2015, this took place in the context of the World
Gas Conference in Paris. In his function as Wintershall’s new Chairman of the Board of Executive Directors, Mario Mehren explained the company’s growth targets against the background
of changing markets and technological challenges.
Press trips also support the exchange with media representatives. Last year, for example, twelve young German journalists got
to know our company’s work in Argentina. The aim of our
activities is to increase transparency and to provide information
about our business model.
Wintershall’s participation in major industry events and our presence on social media like Facebook, Twitter and Youtube also
enable us not only to deepen the dialogue with media and interested public, but also to interact with them promptly and individually.
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OVERVIEW OF STAKEHOLDERS & ACTIVITIES IN 2015
Continuous exchange, participation
in internal working
committees
Participation in
national and
international industry
associations &
initiatives
Topic specific
exchange
BASF
NETWORKS &
ASSOCIATIONS
Participation in
conferences
SCIENCE
PARTNERS
WINTERSHALL
IN DIALOGUE
LOCAL
COMMUNITIES
Bilateral
exchange,
open days,
project-related
discussion and
information
events
EMPLOYEES
POLITICAL
DECISION-MAKERS
MEDIA
Bilateral
exchange,
participation in
hearings,
own discussion
events
Annual press
conference,
press trips
Employee survey,
staff meetings,
internal media
Responsible Cooperation
For the past 60 years Wintershall produces crude oil at Landau, Germany.
Horsehead pumps as well as grape vines are part of the everday picture.
From apprentice to the board (here CEO Mario Mehren) – all German
Wintershall employees contributed through a postcard campaign to the political discussion.
Neighbors
We feel closely connected to local people. The open exchange
with our neighbors provides the basis of mutual understanding
and acceptance of business decisions. We maintain constant
dialogue by being available at our locations at all times and providing information about our activities at an early stage. Such
transparency creates trust.
In Brussels, the further development of European energy and
climate policy dominated political discourse and our work last year.
Also in 2015, we invited to numerous events. In Palatine Landau,
where Wintershall celebrated its 60th anniversary of crude oil
production, the entire site opened its doors. Residents and interested parties had a chance to get an insight into the management and monitoring of the production and treatment processes.
They also could take a very close look at the most important
machinery, ranging from the winch to the slush pump through to
well completion technology.
Politics
Wintershall maintains representations in Berlin and Brussels,
via which we foster a continuous exchange with political decisionmakers and with associations and non-governmental organizations. The focus is on economic, energy and environmental
topics as well as on foreign affairs. Furthermore, Wintershall’s
subsidiaries contribute to local discussions. This enables us to
make a constructive contribution to shaping the political framework for our business activities.
In Germany in 2015, Wintershall promoted, in particular, for a
stable legal framework for domestic production. In this context,
we also participated in the postcard campaign launched by
the German Oil and Gas Industry Association (WEG). Wintershall
employees at German locations sent over 11,600 personally
written postcards to elected representatives in the German states
and at federal level. The aim was to raise political decisionmakers’ awareness of the impact of the current debate about
using hydraulic fracturing.
Furthermore, we continued our engagement in the Multi-Stakeholder Group of the international Extractive Industries Transparency Initiative (EITI). The aim of EITI is to increase transparency
about cash flows and government revenues from the commodities sector. This should enable public dialogue on government
revenue and the use of funds from the production of natural
resources. To this end, companies involved in the production of
commodities disclose their payments (tax payments, royalties,
etc.) to the government authorities, who in turn publish the data
on received revenues.
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Wintershall hosts female
students from Abu Dhabi
For one week, eight female students from the Petroleum Institute in Abu Dhabi travelled throughout Germany
to discover the Wintershall world and learn about innovative technologies “made in Germany”. During this trip,
the students visited the headquarters of Wintershall
and its operative centre for domestic oil and gas production in Barnstorf. It was particularly interesting for the
budding geologists, mechanical technicians, electrical engineers and chemical technicians to receive concrete
insights into everyday professional practice in discussions
with a Wintershall engineer.
In addition to the Wintershall sites, the young women also
visited the energy research centre (Energie-Forschungs-
The students visit the core repositories at Barnstorf, Germany.
zentrum Niedersachen) in Goslar and the Clausthal University of Technology. They likewise visited the Wintershall
parent company BASF, where they learned more about
the variety of possible uses of crude oil.
The cooperation between the Petroleum Institute in
Abu Dhabi and Wintershall underlines the importance of
the region Middle East for Wintershall. By sharing expertise and knowledge with students, Wintershall supports
the development of excellent research and innovation
centres like the Petroleum Institute. Wintershall sets great
store by knowledge transfer to younger generations, as
the industry needs highly qualified specialists in the future.
Responsible Cooperation
Academia
The focus of our exchange with universities and scientific institutions is on technical developments and challenges in exploring
and producing hydrocarbons.
On the one hand, we regularly present and discuss our work
at conferences and symposia. Such as the annual meeting of the
German Scientific Society for Oil, Gas and Coal (Deutsche
Wissenschaftliche Gesellschaft für Erdöl, Erdgas und Kohle e.V.) at
national level, and, at conferences and workshops organized
by the Society of Petroleum Engineers (SPE), the European Association of Geoscientists and Engineers or the Network of European Oil Producers, the Production Engineering Association (PEA)
at international level. On the other hand, we also actively use
digital exchange platforms like that of the SPE. Our engagement
at the Energy and Geoscience Institute at the University of
Utah (USA) also serves the purpose of cross-industrial handling
of current topics, such as geological shale structures in South
America.
Networks
Our involvement in relevant national and international networks
and associations is also an important source of information
and a communication channel.
In Germany, our headquarter, we contribute, among others, to
the work of the German Oil and Gas Industry Association. Relevant
issues in 2015 included the handling of disused pipelines, the
importance of energy efficiency figures and energy audits.
At international level, for example, we play an active part in the
different committees of the International Association of Oil and Gas
Producers (IOGP). Wintershall thus actively participates in the
Oil Spill Response Joint Industry Project under the umbrella of
IOGP and IPIECA, the global industry association for environmental and social issues. The project was launched in 2011 following the Deep Water Horizon disaster in the Gulf of Mexico
in 2010. The primary objective is to identify and develop suitable
technologies and to define concepts for preventing and dealing with oil spills.
Social commitment
Wintershall feels connected to the regions in which it operates
and supports them in their economic and social development.
Dialogue with the local communities enables us to discover the
challenges, which exist and how we can contribute to solve
them.
We recruit, where possible, local workers for our company’s
business activities. Thereby we give a boost to the local labor
market. In addition, we get involved in various ways in cultural
and social spheres. We also support projects linked to education
as well as science and technology.
Education, Science and Technics
As a technology-oriented company, we set great store by promoting interest in the natural sciences and technology. We therefore support projects that aim at enthusing children and adolescents for these topics. Furthermore, we also support projects
involving the promotion of the future scientists.
Social participation
Wherever we operate, we see ourselves as a neighbor who
helps when needed. At our sites, we support regional projects
that benefit disadvantaged people. Thereby we improve their
chances of a promising future and enable them to participate
better in social life.
Art and culture
Art and culture are essential for one and every society. They
transport values, afford an insight into history and contribute to
development. We therefore support art, culture projects at our
locations, and thereby contribute to increasing of the quality of
life at a local level.
Further information about our social commitment under
www.wintershall.com/company /commitment.html
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Wintershall
Corporate Responsibility Report 2015
Our Commitment in 2015
Research lab:
Science Bridge
Pupils and teachers in Northern Hesse can use Science
Bridge, the mobile pupils’ laboratory, to conduct sophisticated experiments in the natural sciences, particularly
in relation to genetics and molecular biology, biochemistry
and biotechnology. Experimental work at school is made
tangible by this learning-by-doing strategy. Wintershall is
involved as a sponsor for Science Bridge e.V.
TeknoLab
TeknoLab in Stavanger in Norway is working closely
together with schools in this region. The organization assists
schools in making teaching on all matters pertaining to
technology, mechanics, design and mathematics as exciting as possible.
Young Vision Award
Since 2013, the Young Vision Award honors students
from Germany and Russia, whose research projects aim
to link ecology and cost-efficiency in oil and gas production. This competition is a joined project of Wintershall
and Gazprom International. In 2015, a team from the
Nizhny Novgorod region convinced the jury with their project for cleaning of phenol-containing wastewater using the combined method of adsorption and water-air oxidation.
Educational Scholarship
In the Argentinian provinces of Tierra del Fuego and
Neuquén, Wintershall supports the local population’s social
and economic development – together with its partner
Total Austral. Individual measures include, for example,
the award of more than 40 scholarships to secondary
school pupils to make their graduation possible.
Responsible Cooperation
Circus Upsala
From the streets to the big top – that is what the Saint
Petersburg project “Upsala Circus” offers children from difficult social backgrounds, some of whom live on the
street. Its goal is to integrate children and youngsters back
into society by means of circus pedagogy. It offers them
a new perspective by giving them a roof over their head and
allowing them to attend school regularly. Wintershall is
one of the supporters of the project.
Art Collection
In Norway, Wintershall is collecting works by local artists,
thereby supporting their development. The collection
now totals 82 works, which are located in Wintershall offices in Bergen and Stavanger.
Music Festival
Traditional
Christmas donation
Wintershall funds numerous projects every year with our
traditional Christmas donation. Instead of giving Christmas presents to customers and business partners, we
donate to charitable and humanitarian institutions in
regions where we operate. We supported relief projects
in Germany, Russia and Libya with a total of 50,000
euros in 2015 alone.
In our home town of Kassel, we have been promoting the
“Culture Tent” (Kulturzelt) for more than 20 years. This
music festival, which takes place every year in summer, is
one of the region’s annual event highlights.
57
Outlook
Outlook
Corporate Responsibility requires long-term thinking and continuous improvement processes.
This is a long-term journey.
Responsible Growth
Sustainability Management
Wintershall works constantly on the further development of sustainability management. Our first
step is the focus on the integration of sustainability into business processes and the E&P
management system. By 2017, we will have developed dedicated Guidelines & Standards, which
ensure the integration in the decision-making processes as well as provide guidance to our
employees.
Sustainability Indicators
To monitor and steer the progress of Wintershall’s sustainability activities, we will develop and establish further SD-KPIs and integrate them in an indicator system by 2020.
Purchasing processes Our aim is to ensure sustainability along the entire value chain. Therefore, we participate in the
initiative “Together for Sustainability” (TfS) to assess our existing suppliers and contractors.
Furthermore we will develop an instrument that helps us even better to evaluate the sustainability
performance of our new suppliers and contractors by 2018.
Responsible Operations
Environmental protection,
Energy and Safety Diversity
Wintershall continues with the global process of certification of the management system of health,
safety and environmental protection (HSE) according to ISO 14001 (environmental management), 50001 (energy management) and OHSAS 18001 (health and safety management) at all
locations. By 2020, the certification-process acording to this standards will be completed.
Promoting diversity is one aspect of our corporate culture. In 2015 for the first time, BASF, our
parent company, set itself global goals for increasing the percentage of women in leadership
positions. BASF aims to increase this figure to 22–24% worldwide by 2021 and we will contribute
to this goal.
Responsible Cooperation
Social Commitment
Social commitment has a tradition at Wintershall. To ensure that it reflects more strongly our
stakeholders’ and our needs, we will seek to conduct our activities in a more impact-oriented way.
By 2020, we will introduce a global framework, incl. evaluation and management tools.
Sustainable Reporting
Since 2007, Wintershall has published an HSE report for interested parties to inform about
our activities. By 2020, we will expand it to a comprehensive Sustainability Report according to
industry and international reporting guidelines IPIECA and GRI.
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Wintershall
Corporate Responsibility Report 2015
CONTACT
We look forward to receiving your questions, suggestions or
comments on the Corporate Responsibility Report 2015.
Wintershall Holding GmbH
Friedrich-Ebert-Straße 160
34119 Kassel
Germany
Corporate Sustainability
Nadja Brauhardt
sustain @ wintershall.com
External Communications / Media Relations
Stefan Leunig
presse @ wintershall.com
Tel.: + 49 561 301 - 0
Fax: + 49 561 301 - 1702
www.wintershall.com
Also present on:
IMPRINT
Responsible for the content
Wintershall Holding GmbH
Friedrich-Ebert-Straße 160
34119 Kassel, Germany
Concept of content and coordination
Wintershall Holding GmbH
Concept and design
Heisters & Partner,
Corporate and Brand Communication, Mainz, Germany
Translation
KERN AG, Kassel, Germany
Photography
BG RCI / Armin Plöger (p. 39)
Odfjell Drilling (p. 13)
Thaddeus Strode, The Forgiven and the Unforgiven in an 80s Field (p. 57)
Wintershall / Morten Berentsen (p. 10)
Wintershall / Arthur Bondar (p. 56)
Wintershall / Marc Borufka (p. 45)
Wintershall / Tarek Burgan (p. 39)
Wintershall / Christian Burkert (p. 43, 54)
Wintershall / Jack Dabaghian (p. 8)
Wintershall / Sven Doering (p. 35)
Wintershall / Andreas Fischer (p. 56)
Wintershall / Justin Jin (p. 16, 19, 21, 32)
Wintershall / Danil Khusainov (p. 19)
Wintershall / Alejandro Kirchuk (p. 22, 25, 26)
Wintershall / Heiko Meyer (p. 53)
Wintershall / Thor Oliversen (p. 13, 40, 57)
Wintershall / Frank Schinski (p. 2, 48)
Wintershall / Bernd Schoelzchen (p. 48, 49, 57)
Wintershall / Torsten Silz (p. 53)
Wintershall / Harry Soremski (p. 57)
Wintershall / Flying Focus / Herman Ijsseling (p. 43)
Wintershall (p. 7, 8, 32, 33, 34)
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