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PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY REPORT 2013 IN-KANTRI SASTENABILITI RIPOT

PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

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Page 1: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

P N G P E R S P E C T I V E : 2 0 1 3 I N - C O U N T R Y S U S T A I N A B I L I T Y R E P O R T

2 0 1 3 I N - K A N T R I S A S T E N A B I L I T I R I P O T

Page 2: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

T R A N S F O R M A T I O NS E N I S

Tolai baskets originate from the East New Britain Province, Papua New Guinea.

They are made from coconut fronds and traditionally were used in

ceremonies and for trade. They are now common in many different regions

in Papua New Guinea and are used for everyday utilitarian purposes.

1

Page 3: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

SuccESSful comPlETioN of ThE uS$19 BillioN

PNG lNG ProjEcT iN 2014 will SEE oil SEarch

TraNSform iNTo a SiGNificaNT lNG ExPorTEr.

wiTh a major NEw rEvENuE STrEam aNd maTErial

ExPaNSioN oPPorTuNiTiES oN ThE horizoN,

our aim iS To dElivEr BoTh GrowTh aNd hiGhEr

dividENdS To SharEholdErS, ENSuriNG coNTiNuEd

ToP quarTilE rETurNS iN ThE yEarS ahEad.

A Y E A R O f T R A N S f O R M AT I O NW A N P E L A Y I A B I LO N G S E N I S

4 Letter from the Managing Director Toktok i kam long Menesing Dairekta

6 2013 at a Glance Lukluk wanpela moa taim i go insait long 2013

8 Stakeholder Engagement Wok Wantaim ol Stekholda

10 Our Sustainability Approach Sastenabiliti luksave bilong mipela

11 Operating with Integrity Wok wantaim gutpela bel na tingting

13 Enhancing Our Social Licence to Operate Strongim komuniti laisens long mekim wok

14 Our Sustainability Achievements Ol bikpela wok kamap bilong Sastenabiliti

CENTRE FLAP: 10-Year Sustainable development snapshot Liklik stori bilong sastenabol divelopment

16 Enhancing Our Social License to Operate (cont.) Strongim komuniti laisens long mekim wok

(i go moa)

18 Generating Shared Value Kamapim Gutpela bilong olgeta

21 Managing Resources Responsibly Menesim gut ol risos

23 Continuous Performance Improvement Mobeta wokmak i go yet

25 People Ol Pipol

27 Glossary Gloseri

TAIM US$19 BILIEN PNG LNG PROJEK I PINISIM WOK

BILONG EM LONG 2014, OIL SEARCH BA I LUKIM BIKPELA

SENIS LONG KAMAP WANPELA BIKPELA EKSPOTA

BILONG LNG. I GAT NUPELA ROT BILONG KISIM MANI

NA OL SAMTING BILONG WOK I STAP LONG PLEN NA MIPELA

I MAKIM BIKPELA WIN MANI I GO LONG OL SEAHOLDA,

NA LONG STRONGIM KAMPANI LONG GO BIKPELA yET NA

KISIM MOA WIN MANI LONG OL yIA I KAM BIHAIN.

32 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

Page 4: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

L E T T E R F R O M T H E M A N A G I N G D I R E C T O RT o k T o k i k a m l o n g m e n e s i n g D a i r e k Ta

in 2013 we celebrated our tenth year of operating all of Papua New Guinea’s producing oil fields, and our 85th year in PNG. i’m pleased to say that as oil Search has evolved, our commitment to sharing the value of our company’s growth with the people of PNG has become even stronger. as a result, both PNG and oil Search have grown together over the past eight decades, with each contributing to the other’s development.

Through an active sustainable development programme, oil Search has supported dozens of medical centres in remote areas and helped hundreds of PNG people to further their careers with a tertiary education sponsorship. we have invested heavily in landowner companies and helped deliver 113 infrastructure projects through the PNG Government’s Tax credit Scheme since 2003. we have set up the oil Search health foundation and supported agricultural co-operatives.

Long 2013 mipela i selebretim namba 10 yia bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas long tok olsem taim Oil Search i bin kamap, strongpela tingting bilong mipela long serim wanem samting kampani i kamapim wantaim ol pipol bilong PNG em i go strong moa yet. Long dispela as, wok poroman bilong PNG na Oil Search i kamap strong insait long las 85 yia na tupela i helpim ol yet long kamap strong.

Oil Search i helpim planti medikal senta insait long ol ples i stap longwe tru long bus na em i helpim planti handet pipol bilong PNG long kisim sponsa long kisim moa skul long ol bikpela teseri institusen, wantaim helpim bilong ol gutpela divelopmen program. Mipela i putim bikpela mani i go insait long helpim ol kampani bilong ol papa graun na helpim tu long kamapim 113 infrastraksa projek aninit long Takis Kredit Skim bilong PNG Gavman stat long 2003 yet i kam inap nau. Mipela i kirapim Oil Search Helt Faundesen na tu long sapotim ol egrikalsa kopretiv.

These, and our many other programmes, continue to make a positive difference to PNG communities and set the benchmark for our peers.

operating sustainably also means managing our operations to global standards for safety, environmental management and ethics.

our safety performance in 2013 improved slightly despite a very active programme of higher risk drilling and exploration activities. There was also encouraging progress by the PNG Government towards adoption of the Extractive industries Transparency initiative (EiTi). we actively support steps by the Government in this direction and encourage others to join us.

i would like to thank everybody who has helped to build a bright future for oil Search and PNG, with a special thank you to our PNG employees for their support and hard work. with an exciting period of growth ahead, developing the skills of our PNG employees will be a priority.

Both the upcoming move to larger offices in Port moresby and the updated company logo represent how much oil Search has evolved since 1993 and our commitment to growing with PNG. with PNG lNG Project gas sales likely to begin in mid-2014, our recent investment in the Elk/antelope gas discoveries, and a promising exploration and appraisal drilling programme underway, i expect oil Search and PNG to continue growing together in 2014 and beyond.

PETEr BoTTENmaNaGiNG dirEcTor/mENESINg dAIREKTA

Ol dispela wantaim planti moa narapela program i wok long senisim yet ol PNG komuniti na i putim lekmak long ol narapela kampani olsem mipela long bihainim.

Wok mipela mekim bai i stap longpela taim wantaim pasin bilong ranim wok i wankain mak olsem long globol stendet long sefti, envairenmen menesmen na gutpela pasin.

Mipela i amamas long wok bilong sefti long 2013, long wanem mipela i bin wokim planti dril wok bilong eksploresen we i ken kamapim bikpela hevi tasol em i kamap gutpela tasol. Wok bilong PNG Gavman tu long kisim pasin bilong Ekstrektip Indastri Inisetip (EITI) i bin gutpela tu. Mipela i strong long sapotim ol wok Gavman i mekim long bihainim dispela pasin, na mipela i laik strongim ol narapela lain tu long bihainim mipela. Mi laik tok tenkyu long olgeta lain husat i helpim long kamapim strong wok bilong Oil Search na PNG long kamap gut long bihain taim. Bikpela tenkyu i go long ol PNG wokman na wokmeri bilong mipela long hatwok bilong ol. Mipela bai givim moa taim long lainim ol PNG tim memba bilong mipela long redi long lukim kampani i gro long bihain taim.

Liklik taim bai mipela i go long ol bikpela moa opis insait long Pot Mosbi na tu wantaim nupela logo bilong kampani, dispela i soim olsem Oil Search i bin senis bikpela tru bihain long taim em i stat long long 1993 na i strongim moa tingting bilong mipela long kamap bikpela wantaim PNG. PNG LNG Projek bai stat salim ges long namel bilong 2014, na nupela ELK/Antelope ges mipela i kisim na trupela eksploresen na dril program i no kam yet, mi ting Oil Search bai gro yet wantaim PNG long 2014 na ol yia bihain.

54 OIL SE ARCh IN-COuNTRY SuSTAINABILIT Y REPORT 2013 IN-K ANTRI SASTENABILIT I R IPOT

Page 5: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

2 0 1 3 AT A G L A N C EL u K L u K LO N G 2 0 1 3

SPENT ON TAX CREDIT SCHEME PROJECTS

TAKIS KREdIT SKIm PROjEK I K ISIm K 23 .6m

CORRuPTION PREvENTION FRAMEwORk

TOK OR AIT BILONg WOK PLEN BILONg STOPIm

KOR APSEN

INvESTOR SuSTAINAbILITy bRIEFING HELD

NAmBA WAN mITINg BILONg INvESTA SASTENABILITI I KAmAP

OIL SEARCH HAS OPERATED ALL OF PNG’S OIL FIELDS

OIL SEARch I RONIm PNg OIL FIELdS INAP LONg TEN PELA YIA

SINCE OIL SEARCH wAS FOuNDED IN PNG

OIL SE ARch I K IR APIm WOK INSAIT LONg PNg INAP LONg

85 KRISmAS

PAID TO PNG GOvERNMENT AS ROyALTIES, TAXES, DIvIDENDS, LEvIES

AND OTHER FEES AND CHARGES

K535 mILIEN IgO LONg PNg gAvmAN OLSEm OL PAYmEN, TAKIS NA OL

NARAPELA SAS

INvESTED IN COMMuNITy DEvELOPMENT

K17.4m I gO INSAIT LONg KOmuNITI dIvELOPmEN

6.69

6.38

TOTAL OIL AND GAS PRODuCED IN PNG

(mmBoE)

6.74 mmBOE Em mAK BILONg OLgETA WEL NA gES I KAmAP

LONg PNg

11 12 13

k17.4M APPROVED!

TOTAL RECORDAbLE INJuRIES PER MILLION

HOuRS wORkED

INSAIT LONg mIL IEN hAuA WOK , 2 . 27 NAmBA BILONg OL

WOKL AIN I K ISIm BAgAR AP

2.27TRI

2.10

2.71

11 12 13

1st10thyear k535M

6.74MMbOE

k23.6M

85years

76 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

Page 6: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

HELPING DRIvE THE EXTRACTIvE INDuSTRIES TRANSPARENCy INITIATIvE (EITI) IN PNGAt the global EITI conference in Sydney, PNG’s Treasurer announced the PNG Government intended to adopt the EITI . Oil Search also made a presentation on recent transparency efforts. During the year, Oil Search was appointed to the formal PNG EITI Mult i-Stakeholder Group.Helpim long sTrongim eksTrekTiv inDasTri Transparensi iniseTiv (eiTi) long png

Long globol konprens bi long EITI long Sydney, pastaim Tresera bi long PNg, don Polye, i tokaut olsem gavman bi long PNg government i laik kis im pasin bi long EITI . Oi l Search tu i soim sampela piksa na toktok bi long transparensi nau i kamap pinis . Insait long yia, ol i makim Oil Search long kamap memba bi long PNg EITI malt i-Stekholda grup.

S TA k E H O L D E R E N G A G E M E N T W O K W A N TA I m O L S T E K h O L d A

PORT MORESby GREEN OFFICE GROuP ENGAGES STuDENTS

To coincide with World Environment Day, members of the Port Moresby Green Office Group visited the Jubilee Catholic Secondary School to provide practical advice to students on how to reduce their environmental footprint.poT mosbi grin opis i wok wanTaim ol sUmaTin Long Wol Envairenmen de, ol memba bilong Pot mosbi grin Opis grup i go long jubiliee Katolik Sekendri Skul long givim sampela toktok long ol sumatin long senisim ol pasin wei save bagarapim envairenmen. Ol i kisim tok long was gut long wanem hap ol i wokabaut na mekim samting bai i no ken putim mak nogut long graun, bus na wara.

SECOND ANNuAL EMPLOyEE SuSTAINAbILITy SuRvEy

This annual survey allows staff to provide

feedback and input on what sustainability issues

are important to them and to indicate their level

of engagement in sustainability issues.

namba TU enUel employee sasTenabiliTi sevei

dispela enuel sevei em i givim taim long

ol wokman na wokmeri long tokaut

long wanem kain wok bilong sastenabiliti

em ol i ting i namba wan long ol na

long tokaut long wanem kain we ol i save

givim han long dispela.

OIL SEARCH’S FIRST ANNuAL SuSTAINAbILITy INvESTOR bRIEFINGIn Sydney, Oil Search briefed a group of investors and analysts on the Company’s commitment and approach to sustainability related issues.

oil searcH i Holim namba wan enUel sasTenabiliTi invesTa miTingLong Sydney, Oil Search i bung wantaim ol investa na ol lain i save skelim gut wok bilong ol kampani, na toktok long ol wok bilong en we bai karim gutpela kaikai.

ENGAGING ON CLIMATE CHANGE IN PNG

Oil Search is actively engaged in various OCCD

technical working groups and stakeholder

engagement groups, including one for the

PNG Climate Change Policy. In Port Moresby,

Oil Search sponsored and participated in the

PNG OCCD’s first Climate Change Open Day.

Attended by over 2,000 people, the event

informed the public about climate change and

the actions being undertaken across PNG.

JUNEJUN

aUgUst

ogas sEptEmbErsEptEmba

aUgUstogas

sEptEmbErsEptEmba

maymE

SuPPORTING CANCER

RELIEF IN PNG

For the 10th year running, Oil Search

supported PNG’s Cancer Relief

Society’s annual Daffodil Corporate

Golf Challenge to help raise funds

for cancer support in PNG. In 2013,

Oil Search entered two teams in Port

Moresby and one in the Lae event and

provided K50,000 in sponsorship.

sapoTim wok bilong DaUnim

kensa long png

Nau em i namba 10 yia long

Oil Search i givim sapot long enuel

daffodil Koporet golf Salens long

long kamapim mani bilong Kensa

Sosaiti long PNg. Long 2013, Oil

Search i sponsa long tupela tim long

Pot mosbi na wanpela long Lae na i

givim K50,000 olsem sponsa mani.

PITCHING IN FOR A CLEANER ENvIRONMENT

In Port Moresby 24 Oil Search employees and their families

worked together in Bank South Pacific’s Annual Clean-up Day

to help clear the streets of rubbish.

givim Han long klinim ples

Long Pot mosbi, 24 Oil Search wokman na wokmeri wantaim

ol famili bilong ol i bung wantaim na klinim ples long de Benk

Saut Pasifik i makim olsem Enuel Klin-ap de long rausim ol

pipia long ol rot bilong siti.

sEptEmbErsEptEmba

TokTok long climaTe cHange

insaiT long png

Oil Search em i save stap insait long kain kain ol

teknikal wok grup bilong Occd na ol stekholda

engesmen grup na wanpela bilong dispela em

long PNg Klaimet Senis Polisi. Long Pot mosbi,

Oil Search i sponsa na i stap insait long PNg

Occd namba wan Klaimet Senis Open de.

moa long 2,000 pipol i bin kamap na kisim

toksave na lukim wanem samting i kamap long

wok bilong klaimet insait long kantri.

PhoTo By cElES TiNE ovE

dISPEL A P IKSA Em cELESTINE OvE I K ISIm

PhoTo By olGa foNTaNEll a zdISPEL A P IKSA Em OLgA FONTANELL A z I K ISIm

PhoTo By ruTh war am

dISPEL A P IKSA Em

RuTh WAR Am I K ISIm 98 oil SE arch iN-couNTry SuSTaiNaBiliT

Page 7: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

Continuous Performance Improvement / mobeTa wokmak i go yeT

Continue to grow and leverage our sustainability capability by seeking ways to enhance our

approach through improved monitoring, measurement and innovation.

go het long groim na strongim sastenabiliti sindaun bilong mipela, na painim rot bilong

strongim luksave bilong mipela long mobeta wok lukautim, kaunim na nupela rot bilong

mekim samting.

Enhancing Social Licence to Operate / sTrongim komUniTi laisens

long mekim wok Support continued business operations by maintaining strong mutually beneficial relationships

directly with stakeholders, monitoring the impact of our activities and leaving a long-term

positive social development legacy.

Sapotim ol bisnis na strongim ol pasin poroman wantaim ol stekholda, was long hevi bilong

wok bilong mipela, na larim wanpela longpela taim gutpela sosol divelopmen strateji.

Generating Shared Value / kamapim gUTpela bilong olgeTa

Generate positive, sustainable outcomes for the communities in which we operate by creating

opportunities which benefit the community and contribute to the continuity of our operations.

Bildim gutpela, sastenabol autkam bilong ol komuniti we mipela i wok long en, na kamapim

ol sans we i ken benefitim komuniti na kontribut long longpela taim sindaun bilong ol

operesen bilong yumi.

Managing Resources Responsibly / menesim gUT ol risos

Minimise our environmental impact and operate in an environmentally sustainable way through

the adoption of a precautionary approach and consideration of effective and efficient use and

re-use of resources.

daunim hevi bilong mipela long ol busgraun, na mekim wok i gutpela long busgraun na wara

bihainim wanpela gutpela rot na luksave na tingim gutpela na mobeta yusim na yusim gen

ol risos.

Operating with Integrity / wok wanTaim gUTpela bek ba TingTing

Operate ethically and adopt and advocate for principles, practices and standards that respect

diversity, local culture, human rights, labour rights and the environment, and which contribute

towards combatting corruption.

mekim wok bihainim stretpela pasin na bihainim na tok strongim ol astingting, na stendat we

i luksave long daivesiti o kain kain manmeri na samting, lokol kalsa, humen rait, leba rait na

busgraun na wara, we i save halivim long pait long daunim korapsen.

O u R S u S TA I N A b I L I T y A P P R O A C HS A S T E N A B I L I T I L u K S A v E B I LO N G m I P E L A

We set ourselves apart from our peers by our sustainable development approach and our

ability to contribute positively to the development of the communities in which we operate.

mipela i sanapim mipela ausait moa long ol wanlain bilong mipela, aninit long sastenabol

divelopmen luksave, na save bilong mipela kontribut gut long divelopmen bilong ol

komuniti we mipela i mekim wok long en.

O P E R AT I N G w I T H I N T E G R I T y W O K W A N TA I m G u T P E L A

B E L N A T I N G T I N G

New Health, Safety and Sustainability board Committee establishednupela Helt, sefti na sastenabiliti bot komiti i kamap

meeting for the first time in october 2013, the committee assists the Board with monitoring and reviewing the company’s risks, compliance and performance across health, safety and sustainability. This, along with other changes to the Board committee structure in 2013, will ensure a broad range of operational and financial issues continue to be addressed.

Dispela nupela Bot Komiti i bung namba wan taim long Oktoba 2013, na i save helpim Oil Search Bot long lukluk na was long helt, sefti na sastenabiliti wok bilong kampani. Dispela kain ol bung na narapela senis long bot komiti straksa long 2013 bai strongim luksave bilong Oil Search Bot long ol operesen o wok na moni samting bilong kampani.

Oil Search joins the PNG EITI Multi-Stakeholder GroupOil Search i bung wantaim PNG EITI malti-Stekholda Grup

in may 2013, the PNG Government formally committed to implementing the Extractive industries Transparency initiative (EiTi). oil Search has been an EiTi supporting company since january 2013 and, along with our peers, have advocated for the PNG Government to adopt the EiTi. in November, the PNG Government and various society and industry representatives, including oil Search, were invited to join PNG’s formal EiTi multi-Stakeholder Group to support implementation of the EiTi in PNG.

Long Me 2013, Gavman bilong PNG i tokaut olsem em bai mekim wok bihainim pasin bilong Ekstrektiv Transparensi Inisetiv (EITI). Oil Search i wanpela kampani we i save sapotim EITI wok stat long Janueri 2013 na mipela i save autim nem bilong EITI na kisim pasin bilong em insait long PNG wantaim ol narapela kampani i gat wankain wok olsem mipela. Long Novemba, PNG Gavman na ol narapela sosaiti na indastri wantaim Oil Search i kisim singaut long bung wantaim PNG EITI Malti-Stekholda Grup long sapotim dispela wok.

PETROLEuM TAX / PETROLIum TAKIS

ROyALTIES & DEvELOPMENT LEvIES / OL PAYmEN NA dIvELOPmEN SAS

SALARy & wAGES TAX / SALARI NA POTNAIT PE TAKIS

OTHER TAXES, FEES & CHARGES / OL NARAPELA TAKIS NA SAS mANI

DIvIDENDS / OL SAmPELA mOA PAYmEN

PAyMENTS TO PNG GOvERNMENT

PE I GO LONG GAvmAN

for further data and information on payments

made by oil Search to Governments, see oil Search’s 2013

Transparency report

Sapos yu laik save moa long Oil Search i baim

wanem kain mani i go long Gavman, yu ken lukim 2013 Transparensi Ripot bilong

Oil Search.

Security, iagifu ridge camp, Kutubu / Sekuriti, Iagifu Ridge camp, Kutubu

K535m

167

70

288

63

17

1110 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

Page 8: PNG PERSPECTIVE : 2013 IN-COUNTRY SUSTAINABILITY … · bilong mipela long ronim ol wel bilong Papua Niugini, na tu mipela i selebretim 85 yia mipela i stap wok long PNG. Mi amamas

Investigating Code of Conduct breachesWok painimaut long ol lain i brukim Lo bilong Wok

in 2013, oil Search dealt with 18 breaches of our code of conduct. This increase from 13 in 2012 was largely due to an audit which revealed nine employees had, in most cases inadvertently, breached oil Search’s share trading policy since 2011. all employees who breached our policy received formal warning letters. Two minor cases of fraud were referred to the police and are still under investigation. five minor breaches were dealt with internally through a warning letter. investigation into one outstanding incident of corruption from 2012, not involving the company, was completed in 2013; the staff member investigated was suspended and subsequently resigned. an additional investigation was opened as a result and is ongoing.

Long 2013 Oil Search i mekim save long 18-pela lain i brukim Lo bilong Wok. Dispela mak i winim bilong 2012 we mipela i bin kisim 13-pela lain. As bilong dispela em i kamap long wanpela odit o wok bilong sekim ol wok bilong mani insait long kampani na i soim 9-pela woklain i brukim ol lo bilong wok aninit long Oil Search Treding Polisi long 2011 i kam inap long 2013. Olgeta dispela woklain i kisim tok lukaut pas. Tupela liklik hevi bilong giaman em mipela i salim i go long polis na ol i mekim wok painim aut yet i stap. Narapela 5-pela liklik hevi em mipela i stretim insait long opis yet wantaim pas i go long ol lain i mekim rong. Wok painim aut long wanpela pasin korapsen i kamap long yia 2012 em i pinis long 2013. Dispela wokman em mipela i saspenim em na bihain em yet i pinis long wok. Mipela opim gen wanpela wok painim aut bihain long em i pinis wok na dispela i go het yet.

oil Search’s confidential whistle-blower hotline is now available in motu and Tok Pisin, allowing contractors and employees in PNG to report unlawful, unethical or corrupt behaviour. To access the hotline or for further information, go to www.oilsearchhotline.deloitte.com.au

Oil Search nau i gat wanpela intanet adres bilong ol lain husat i laik hait na kotim ol lain i brukim lo na i mekim kain kain pasin nogut na ol i ken toktok long Tok Pisin o Tok Motu. Sapos ol i laik putim ripot bilong ol, ol i ken go long dispela intanet adres: www.oilsearchhotline.deloitte.com.au

A

nony

mous

ho

tline av

ailable …

Mipela i gat wanpela

hotlain bilong tupela

tokples MULT

ILIN

GUAL

Corruption

Prevention

Framework

Fremwok bilong Stopim

korapSen i kamap

Awareness raising and training

around the newly completed

Framework will be conducted

in 2014 to ensure all staff can

accurately identify corruption

risks and respond in compliance

with Oil Search’s new standards.

Wok bilong kamapim awenes

na trening bilong nupela

fremwok bai kamap long yia

2014. Em bilong helpim olgeta

wokman na wokmeri long lainim

pasin bilong luksave long ol

pasin korapsen i ken bagarapim

wok, na long we bilong stretim

o abrusim aninit long ol nupela

mak Oil Search i putim.

COMPLETED

E N H A N C I N G O u R S O C I A L L I C E N C E T O O P E R AT E

S T R O N G I m K O m u N I T I L A I S E N S

LO N G m E K I m W O K

kutMor continues to growKutmor i wok long gro yet

oil Search helped to establish umbrella landowner company (lanco) Kutmor in 2012, a lanco representing community members from the Kutubu and moran areas. in 2013 we continued to provide ongoing assistance including the secondment of an oil Search manager to assist with development. at the end of 2013, Kutmor’s share capital was 90% subscribed and employee numbers had risen from 60 to 235. Kutmor provides oil Search with labour hire services and light vehicles and performs minor civil works contracts. all these are expected to increase with the awarding of more contracts in 2014.

Oil Search i helpim long kirapim ambrela ogenaisesen KutMor long 2012, wanpela kampani bilong ol papagraun o Lanco i makim ol lain bilong Kutubu na Moran. Insait long 2013 mipela i salim wanpela menesa bilong Oil Search i go helpim ol long wok divelopmen bilong ol. Long pinis bilong 2013, ol se kepitol o mani mak bilong ol i go 90 pesen na namba bilong ol woklain i lusim 60 na i go antap long 235. Oil Search i save usim KutMor long kisim ol leba na ol kar na ol liklik wok kontrak. Mipela i lukluk long mekim moa wok wantaim ol long 2014 na givim moa kontrak.

benefits management model approved by National Executive CouncilNesenel Ekseketiv Kaunsil i tok orait long benefit menesen model

Since 2010, oil Search has worked alongside Exxonmobil PNG limited and representatives from various levels of Government to develop the Shared responsibility model. The model will help deliver Government infrastucture commitments included in oil memorandum of agreements (moa) and the PNG lNG Project’s umbrella Benefits Sharing agreement (uBSa).

Stat long 2010, Oil Search i wok wantaim ExxonMobil PNG Limited na ol lain i makim ol opis bilong Gavman long kamapim Model bilong brukim wok. Dispela model bai helpim Gavaman long mekim ol wok bilong infrastraksa i stap insait long MOA na PNG LNG Projek Ambrela Benefit Sering Agrimen (UBSA).

Seismic work in the greater juha area / Seismic wok

insait long bikples juha

34LANCO REPRESENTATIvES

COMPLETED DIRECTORS’ TRAINING

34 lain i makim Lanco i pinisim

wanpela dairekta trening

K187million IN CONTRACTS PAID

TO LANCOS, A 14%

INCREASE FROM 2012

Oil Search i givim

K187 milien kontrak i go

long ol Lancos, dispela

i makim 14 percen

moa long 2012

1312 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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1ST ANNuAL TRANSPARENCy REPORT

PubLISHED

NAmBA WAN ENuEL TRANSPARENSI RIPOT

I KAmAuT

APPROVED

CORRuPTION PREvENTION FRAMEwORk

STOPIm KORAPSEN FREmWOK KISIm

TOK ORAIT

bECAME AN EXTRACTIvES INDuSTRIES

TRANSPARENCy INITIATIvE (EITI)

SuPPORTING COMPANy

KAmAP KAmPANI BILONg SAPOTIm EKSTREKTIv

INdASTRI TRENSPARENSI INISETIv (EITI)

Port Moresby eMPloyees Move

into A new office

Pot Mosbi i gat nuPela oPis

SyDNEy AND bRISbANE MOvE INTO NEw, GREEN OFFICES

SYdNEY NA BRISBANE I gO INSAIT LONg

NuPELA gRIN OPIS

DEVELOP a sustainabLE suPPLy

chain stratEgy

Kamapim wanpela sastenabol saplai

sen stratesi

2013

GREENHOuSE GAS AbATEMENT STRATEGy

PLEN BILONg dAuNIm gRIN hAuS gES I KISIm

TOK ORAIT

MEMbER OF PNG’S EITI MuLTI-

STAkEHOLDER GROuP (MSG)

mEmBA BILONg PNg EITI mALTI-STEKhOLdA

gRuP (mSg)

APPROVED

O u R S u S TA I N A b I L I T y A C H I E v E M E N T SO L B I K P E L A W O K K A m A P B I LO N G S A S T E N A B I L I T I

OIL SEARCH HEALTH FOuNDATION LAuNCHED

OIL SEARch hELT FAuNdESEN I KIRAP

SuSTAINAbILITy POLICy

SASTENABILITI POLISI KISIm TOK ORAIT

40,000 HIv TESTS PERFORMED wITH HEALTH

FOuNDATION SuPPORT

40,000 hIv TES I KAmAP WANTAIm SAPOT BILONg OIL

SEARch hELT FAuNdESEN

SuSTAINAbILITy EMPLOyEE

ENGAGEMENT SuRvEy

NAmBAWAN SASTENABILITI WOK PAINIm AuT WANTAIm

OL WOKLAIN

PNG LNG Project oPeratioNaL

PNG LNG Projek oPereseNeL

ORGANISATIONAL STRATEGY REVIEW

StrateSi riviu bilong ogenaiSeSen

HEALTH, SAFETy & SuSTAINAbILITy (HSS) COMMITTEE

ESTAbLISHED

hELT, SEFTI NA SASTENABILITI (hSS)

KOmITI I KIRAP

2012

1ST ANNuAL INvESTOR

SuSTAINAbILITy bRIEFING HELD

NAmBA WAN ENuEL INvESTA SASTENABILITI KIBuNg KAmAP

INCLuDED ON DOw JONES

SuSTAINAbILITy INDEX

I gO INSAIT LONg dOW jONES

SASTENABILITI INdEKS

1stAPPROVED

DIvERSITy POLICy dAIvESITI POLISI KISIm

TOK ORAIT

APPROVED

O I L   S E A R C HHEALTH FOUNDATIONCaring for CommunitiesP N G P R O U D

2014

O I L   S E A R C HHEALTH FOUNDATIONCaring for CommunitiesP N G P R O U D

3

OPEN

1514 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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Oil Se arch in-cOuntry SuStainaBilit y repOrt 2013 IN-K ANTRI SASTENABIL IT I R IPOT

1 0 -y e a r S u S ta i n a b l e d e v e l o p m e n t S n a p S h o t

1 0 y i a s a s t e n a b o l

d i v e l o p m e n s t o r i

The sustainable development of communities within which we operate is a core component of Oil Search’s sustainability commitment. For Oil Search, sustainable development includes economic, social and environmental considerations and is critical to continued successful operations in PNG.

This map contains a summary of Oil Search’s sustainable development activities in the 10 years since becoming operator in 2003 and is a result of ongoing efforts to improve measurement of the impact of our sustainable development activities. The focus of our efforts to date has largely been in the Hela, Southern Highlands and Gulf Provinces, due to their proximity to our operations and pipeline. With the launch of the Oil Search Health Foundation in 2012, and the support of the Global Fund, we extended the reach of the Company’s community health efforts outside the project area to Morobe and Milne Bay.

For more information on Oil Search’s sustainable development investment and performance see our 2013 Sustainability Data Book.

Sastenabol divelopmen bilong ol komuniti we Oil Search i wok long en, em i namba wan. Long tingting bilong Oil Search, sastenabol divelopmen em i karamapim ikonomik, sosol na envairenmen na em bai strongim gutpela wok bilong kampani insait long PNG.

Dispela mep i soim ol sastenabol wok bilong Oil Search insait long 10-pela yia long taim kampani i kamap opereta long 2003 na i soim mak bilong wok i go het yet long luksave long wanem kain gutpela wok i kamap. Mipela i lukluk moa long wok insait long Hela, Sauten Hailans na Galp Provins, bilong wanem ol i stap klostu long ol hap mipela i wok long en na tu long rot paip lain i go long en. Taim mipela i kamapim Oil Search Helt Faundesen long 2012, na tu wantaim helpim bilong Globol Fan, mipela i givim moa helpim i go long ol komuniti i stap ausait long eria bilong projek olsem Morobe na Milen Be.

Long kisim moa toksave long sastenabiliti divelopmen invesmen na ol wok bilong mipela, lukim 2013 Sustenabiliti Data Buk.

Our SuSTaiNable develOPmeNT

PriOriTieS iN PNG are: healTh care; FOOd SecuriTy; wOmeN’S

emPOwermeNT; educaTiON; aNd waTer acceSS

aNd SaNiTaTiON.

BikPeLa SaSTenaBOL DiveLOPMen TinGTinG

na wOk BiLOnG OiL SearcH inSaiT LOnG

PnG i: HeLT; wei BiLOnG LukauTiM

GuT OL kaikai SO OL inO inaP PiniS; wOk

BiLOnG STrOnGiM OL Meri; eDukeSen; na

BiLOnG kiSiM GuTPeLa, kLinPeLa wara.

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Improvements to safety managementStretim ol sefti menesmen

a revitalised safety function in 2013 led a number of safety and process safety improvements, including:

delivery of a hands-on safety leadership training course, supported by one-on-one coaching.

introduction of a new framework for managing workplace behaviours.

companywide safety bulletins and themes reinforcing our safety focus.

a new Process Safety improvement Plan and Steering Group and supporting committee to implement.

Mipela kirapim gen wok bilong sefti long 2013, wantaim sampela nupela pasin bilong sefti wok olsem:

Wanpela Sefti Lidasip trening kos we mipela lainim wan wan manmeri long mekim wok stret

Wanpela nupela fremwok bilong menesim ol pasin bilong ol woklain insait long ples bilong wok.

Mipela autim ol sefti toksave insait long olgeta hap bilong kampani long ol woklain i mas tingim sefti.

Wanpela nupela Sefti Impruvmen Plen na Stia Grup na Sapot Komiti long mekim wok.

TOTAL RECORDAbLE INJuRIES PER MILLION

HOuRS wORkED

REKOT BILONG OL BAGARAP I KAmAP INSAIT LONG WAN WAN mILIEN

hAuA BILONG WOK

in 2013, there was an increase in drilling and exploration activity

in PNG. This work often took place in challenging environments,

however despite this, the total number of injuries reduced slightly.

for further information on oil Search’s safety performance see our 2013 Sustainability data Book.

Long 2013, i bin gat planti moa dril na eksploresen wok i kamap

long PNG. Na dispela wok i kamap long ol ples i hat tumas long wok, tasol namba bilong ol lain i kisim

bagarap igo daun liklik.

Bilong kisim moa toksave, yu go long 2013 Sustenabiliti Data Buk.

Tool Box meeting / Seft i bung

2.27

Oil Search won the best Search and Rescue Team Award at the PNG Emergency Response Challenge, which

is entered by emergency services and response teams from the PNG mining industry.

Oil Search i bin kisim awod bilong ‘Best Search na Rescue Tim’ long taim bilong PNG Imejensi Rispons

Salens, em olgeta imejensi sevis na rispons tim long PNG main indastri i resis long en.

1sT pLAce! ThIrd YeAr rUNNING!!

Partnerships create health training opportunitiesWok poroman i opim rot bilong helt trening

in 2013, the oil Search medical and occupational health team conducted training for 20 Port moresby General hospital staff in advanced cardiac life support and ultrasound. a public-private partnership between oil Search, the university of Papua New Guinea’s medical faculty and Port moresby General hospital continued to be successful. it includes two emergency specialist trainee doctors currently rotating through oil Search clinics, with two more doctors scheduled to commence in march 2014.

Insait long yia 2013, Oil Search Medikal na Okupesenal Helt tim i lainim 20 helt woka bilong Pot Mosbi Jeneral Haus Sik long yusim ol masin bilong helpim lewa long wok na long altrasaun masin bilong lukim ol bebi insait long bel bilong mama na ol narapela sik. Wok bilong Pablik Praivet Patnasip namel long Oil Search, na yunivesiti bilong Papua Niugini Medikal Skul long Pot Mosbi Jeneral Haus Sik i wok long kamap gut yet. Nau i gat tupela imejensi speselis treni dokta i wok long raun long ol liklik hausik bilong Oil Search na igat tupela moa dokta bai statim wankain wok long Mas 2014.

E N H A N C I N G O U R S O C I A L L I C E N C E T O O P E R AT E ( c O N T I N u E d )

S T R O N G I m K O m u N I T I L A I S E N S L O N G m E K I m W O K

Mi pela i kaM naMba wan long tripela yia nau

oil Search health cl inic, moro / Oi l Search hausik, moro

All six permanent Oil Search clinics are registered with National Department of HealthOl 6-pela klinik bilong Oil Search nau i rejista wantaim Nesenel helt dipatmen

oil Search’s clinics are often the only health care facilities available in remote areas for employees, contractors and members of the community. in 2013, the clinics treated 20,448 workers and 3,905 community patients with 110 community patients in PNG evacuated by oil Search to other health facilities for further care.

Ol klinik bilong Oil Search istap long ol hap we i no gat narapela hausik or helt klinik i save stap long helpim ol wokman na meri bilong kampani, ol kontrakta na ol pipol long komuniti. Long 2013, ol dispela klinik i lukim 20,448 woklain na 3,905 siklain i kam long ol komuniti. I gat 110 siklain bilong ol komuniti em Oil Search i karim ol long helikopta i go aut long kisim helpim long ol narapela helt senta long kantri.

1716 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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G E N E R AT I N G S H A R E D v A L u E K A m A P I m G u T P E L A B I LO N G O LG E TA

Overview of 2013 community development projectsBikpela piksa bilong 2013 komuniti divelopmen projek

Each year, oil Search undertakes small community projects in collaboration with communities. This approach aims to improve sustainable development outcomes and build local community relationships. in 2013:

13 community area Planning (caP) projects were completed with community input.

70 community members (including 50 women) received training on rice, free-range poultry and vegetable farming.

21 lake Kutubu farmers were provided with ducks, chickens and animal husbandry training in partnership with the PNG National agricultural research institute.

24 students improved their employment opportunities by graduating from a tertiary institution with oil Search’s financial assistance.

Eight water tanks were installed to improve water supply in hides, Kutubu, moran, Gobe and Kikori.

Long wan wan yia, Oil Search i save mekim sampela liklik komuniti projek wantaim ol komuniti yet. Dispela em i rot bilong kirapim strong sastenabol divelopmen na strongim wok poromon wantaim ol komuniti. Insait long 2013 dispela ol projek wok i kamap:

13 Komuniti Eria Plening (CAP) projek i kamap wantaim helpim bilong komuniti

70 memba bilong komuniti (50 meri na 20 man) i kisim trening long planim rais, lukautim kakaruk na planim ol kumu

21 Lake Kutubu fama i kisim trening bilong lukautim pato, kakaruk na ol enimal, wantaim helpim bilong PNG Nesenel Egrikalsa Rises Institut.

Oil Search i helpim 24 sumatin i pinisim skul bilong ol long teseri institusen na i givim ol moa sans long kisim gutpela wok.

Etpela wara tenk i go long Hides, Kutubu, Moran, Gobe na Kikori long givim ol gutpela, klinpela wara saplai.

Commercial piggery project pilotedPailet projek bilong lukautim ol pik bilong salim

during the year, oil Search, in partnership with the Business for millennium development (B4md), commenced trials in Port moresby for a possible commercial piggery. if trials are successful, a community enterprise will manage and grow the piggery, providing local pig farmers in the highlands with an additional cash income source.

Insait long yia, Oil Search, i wok wantaim Bisnis bilong Milenium Divelopmen (B4MD) long kamapim pik projek long Pot Mosbi long skelim sapos dispela projek i ken wokim gut moni. Sapos dispela pailet projek i kamap gut, wanpela komuniti enteprais bai helpim ol fama long Hailens long kisim mani long salim ol pik.

K17.4m

K23.6m

INvESTED IN COMMuNITy INFRASTRuCTuRE

AND DEvELOPMENT PROGRAMMES

putim mani i go insait long komuniti infrastraksa na

divelopmen program

This includes oil Search’s donation to the oil Search health foundation, other donations and sponsorships,

and community development projects and partnerships.

Dispela i karamapim donesen bilong Oil Searchi go long Oil Search Helt

Faundesen, na ol narapela donesen na sponsa, na komuniti divelopmen

projek na ol patnasip.

SPENT ON TAX CREDIT SCHEME PROJECTS

i go long ol Takis kredit skim projek

This amount is almost double that spent in 2012 and relates to work undertaken on eight community infrastructure Tax credit Scheme projects throughout PNG, one of

which was completed by year end.

Dispela mani mak em i dabloim bilong 2012. Em i makim ol

mani i go long 8-pela komuniti infrastraksa Takis kredit Skim

projek long olgeta hap bilong PNG. Wanpela bilong ol dispela projek

i pinis long taim yia i pinis.

Supporting the ongoing development of teachers in PNGhelpim wok bilong tisa divelopmen long PNG

oil Search helps improve primary education quality in PNG by funding diploma in Education Primary in-Service (dEPi) teacher training courses. oscar otto, head Teacher at waro Primary School, is one of oil Search’s recent dEPi graduates.

To obtain his dEPi, oscar attended training in moro run by the cdi foundation during school breaks. without oil Search’s support, oscar would have been unable to afford to attend the two-year course. By obtaining this qualification, oscar has improved his finance and administration skills, and employs more engaging teaching techniques, improving education outcomes.

after obtaining his dEPi in 2009, oscar was promoted to head Teacher. Since then, 20 students at the school have progressed to high school – none had before – and five students have gone on to tertiary study. for more case studies, visit www.oilsearch.com/sustainability/case-Studies.html.

Oil Search i save helpim long kamapim gutpela praimeri edukesen long PNG. Em i save givim mani long tisa trening kos bilong Diploma in Edukesen Praimeri in-Sevis (DEPI). Oscar Otto, Het Tisa bilong Waro Praimeri Skul, em i namba wan man long greduet aninit long sposa bilong Oil Search.

Long kisim DEPI bilong em, Oscar i go sindaun long trening ol CDI Faundesen i ranim long Moro long taim bilong ol skul holide. Sapos Oil Search i no helpim Oscar, em bai i no inap long baim dispela tupela yia kos. Taim Oscar i kisim dispela trening, em i gat moa save long lukautim fainens na edministresen na em i kisim moa save long pasin bilong wok gut wantaim ol sumatin longn ol i ken kisim moa save.

Bihain long taim Oscar i kisim DEPI bilong em long 2009, em i kisim promosen olsem Het Tisa. Na long dispela taim i kam, i gat nau 20 sumatin long skul bilong em i go pinis long hai skul. Pastaim i nogat sumatin i save i go long hai skul. Nau 5-pela sumatin i go long mekim teseri stadi. Sapos yu laik save moa long ol liklik stori olsem, go long www.oilsearch.com/sustainability/Case-Studies.html.

113 Tax Credit Scheme projects delivered by Oil Search since 2003

113 Takis Kredit Skim projek i kamap taim Oil Search i stat long 2003

during the year, work commenced on two of three new National Tax credit Scheme

projects in Port moresby. due to be completed in 2015, refurbishment of marea house

will improve facilities for several PNG Government departments. work on a new 25,000

seat multi-purpose stadium for the 2015 Pacific Games also commenced in december

2013. The third project is still in the proposal stage.

Insait long yia, wok i bin stat long tupela bilong ol tripela Nesenel Takis Kredit Skim

projek long Pot Mosbi. Wok bilong stretim Marea Haus bai i pinis long 2014, bai

stretim gut ofis bilong ol Gavman dipatmen. Wok bilong wanpela bikpela 25,000

sita stedium bilong 2015 Pasifik Gems i stat pinis long Disemba 2013. Namba 3 projek

i stap long proposal tasol yet.

PhoTo By Sar ah Br au d E

dISPEL A P IKSA Em

SAR Ah BR AudE I K ISIm

1918 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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Oil Search Health Foundation activities in 2013Ol wok bilong Oil Search helt Faundesen long 2013

in 2013, long-term strategies for hiv, maternal and child health and malaria were developed to ensure the oil Search health foundation can continue to address the needs of health in PNG in the long term. considerable improvements have also been made to reporting systems to ensure better targeting of resources to areas of need.

Long 2013, ol wok plen bilong HIV, helt bilong mama na pikinini na malaria i kamap long helpim Oil Search Helt Faundesen long stretim ol helt nid bilong PNG long nau na bihain taim tu. Bikpela senis tu i kamap long wei bilong putim ripot bilong makim gut wanem ol risos ba go long wanem ol hap we i gat bikpela nid.

in 2013 the health foundation:

Provided hiv support to an additional 35 health facilities, bringing the total number of health facilities supported to 66 across five provinces.

Supported 40 clinical and non-clinical malaria treatment sites in morobe and Southern highlands to deliver quality malaria management.

worked with the PNG reproductive Training unit (rhTu), a 5-year public-private partnership launched in 2013 to enable 342 front-line reproductive health care workers to complete training in emergency and essential obstetric care.

Insait long yia 2013, Helt Faundesen i:

Helpim 35 moa helt klinik long wok bilong HIV, na i bringim namba bilong ol helt klinik i go antap long 66 insait long 5-pela provins.

Sapotim 40 malaria tritmen insait long wok bilong klinik na ausait long Morobe na Sauten Hailens bilong mekim gutpela wok bilong daunim sik malaria.

Wok wantaim PNG Riprodaktiv Trening yunit (RHTU), na kamapim wanpela 5-yia Pablik na Praivet Patnasip mipela long 2013. Dispela patnasip helpim ol fran lain riprodaktiv helt ke woklain long ol provins long kisim moa save long wok long imejensi na lukautim helt bilong ol mama (obstetricke).

M A N A G I N G R E S O u R C E S R E S P O N S I b Ly

m E N E S I m G u T O L R I S O S

22,801MATERNAL & CHILD HEALTH

vACCINATIONS ADMINISTERED, A 77% INCREASE FROM 2012

mama na pikinini i kisim banis sut na marasin, dispela i makim

77 pesen moa long 2012

41%IN POSITIvE MALARIA

TESTS IN 2013 Tes i soim malaria binatang i go daun 41 pesen long 2013

–>

40,000HIv TESTS PERFORMEDwokim 40,000 Hiv tes

PNG rhTu Essential obstetric

care training session, Port moresby

General hospital / PNg RhTu

Obstetric care trening, bikpela

Pot mosbi hausik

understanding biodiversity risks and opportunitiesLuksave long ol samting we i ken bagarapim ol flawa, insek, enimol, pis o pisin na tu luksave long gutpela sans bilong lukautim

oil Search is committed to improving our understanding of biodiversity risks and opportunities. in 2013 we:

assessed how to improve the integration of biodiversity management into our activities.

conducted a field survey for the presence of invasive plants and animals.

The results of both projects will inform further 2014 biodiversity improvements.

Efforts by oil Search in 2012 to build the capacity of the wildlife management area committee (a group of lake Kutubu community leader representatives) and update the lake Kutubu catchment management Plan were delayed until the results from an investigation conducted by the dEc into concerns about fish dying in lake Kutubu in late 2012 have been finalised.

Oil Search i gat bikpela tingting long kamapim gutpela luksave long ol samting we i ken bagarapim ol insek, enimol, pis o pisin na tu luksave long gutpela sans bilong lukautim. Long 2013 mipela:

Glasim wei bilong strongim wok bilong lukautim ol flawa, insek, enimol, pis o pisin insait long ol wok bilong mipela

Kamapim wanpela fil sevei o wok painimaut long ol nupela bus na enimol i kam insait long eria

Stori bilong tupela wok painimaut bai helpim long kamapim gut wok bilong lukautim ol flawa, enimol, pis o pisin long 2014. Long 2012, Oil Search i traim long kamapim strong wok bilong Wail Laip Menesemen Eria Komiti (ol lain i makim ol komuniti lida long Kutubu) na stori bilong Lek Kutubu Ketsmen Menesmen Plen i kam isi tru inap long taim wok painimaut bilong DEC long ol pis i dai insait long Lek Kutubu long 2012 i pinis.

4

4

ISO14001: PNG Environmental

Management System 2013 audit scorecard

ISO14001: PNG Envairenmen menesmen

Sistem 2013 odit skoa kat

4 70% of previous minor

non‑conformances closed

Pasim 70 pesen bilong ol liklik lain

i no bihainim mak

No new non‑conformances

raised by external auditor

Odita ino painim sampela nupela

nupela lain i no bihainim mak

Accreditation of all PNG areas

of operations maintained

Olgeta PNG operesen i stap yet

insait long sistem

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Increasing water monitoring capabilityKamapim moa save bilong glasim gut wara

oil Search made a number of improvements to our water monitoring capability in 2013:

The on-site testing laboratory was iSo 17025 accredited so water samples can be more effectively tested on-site.

Sampling devices were purchased to improve the efficiency and reach of our water monitoring programme.

consumption meters were installed at our drilling operations and moro and ridge camps to improve water consumption data accuracy.

Oil Search i mekim sampela gutpela wok kamap long pasin bilong lukautim wara insait long 2013:

Leboretri bilong testim wara i kisim ISO17025 akreditesen o tok orait bilong ol i ken testim ol wara long hap yet;

Mipela baim ol masin bilong testim wara long kamapim gut wok bilong wara program; na

Ol i putim ol mita bilong wara long ol dril operesen na Moro na Rits Kem long kisim gutpela mak bilong ol lain i yusim wara.

A sustainable PNG energy supply optionWanpela sastenabol PNG enesi saplai

in 2013, oil Search submitted a proposal to PNG Power to develop and operate a biomass-fuelled power plant to supply sustainable, long-term base load power to the lae region. The proposal highlighted the project’s significant economic, social and environmental benefits for PNG Power, the lae region and the PNG economy. discussion with the relevant parties in PNG is ongoing.

Long 2013, Oil Search i givim wanpela proposol i go long PNG Pawa long kamapim na ranim wanpela baiomes projek olsem baiomes fiul pawa masin long saplaim strongpela na gutpela pawa i go long hap bilong Lae. Dispela proposol i kamapim klia strongpela helpim long ikonomik, sosol na envairenmen bilong PNG Pawa na long rijon bilong Lae na PNG ikonomi. Toktok i wok long go het yet wantaim olgeta lain husat i gat wok long dispela samting insait long PNG.

Greenhouse gas (GHG) emissions on track for targetGrinhaus ges emisen i stap long mak stret

oil Search remains on track to meet our target of a 12% reduction in emissions intensity across existing operations by 2016 against a 2009 baseline. The highest value emission reduction opportunities are new project developments, which will be the primary focus of oil Search’s approach to reducing greenhouse gas emissions moving forward.

Ol wok bilong Oil Search i stap yet long rot bilong daunim mak bilong ol ges nogut i go aut long 12 pesen long 2016 na em i bihainim wanpela mak bilong 2009 beslain. Bikpela mak bilong daunim ges nogut i go aut em ol nupela projek divelopmen, wantaim bikpela tingting Oil Search i gat long daunim grinhaus emisen long go het.

GHG (ktCO2-e) / gRIN hAuS gAS (ktcO2-e)

GHG EMISSIONS INTENSITy (ktCO2-e/MMbOE) / STRONg BILONg gRIN hAuS gES IgO AuT (ktcO2-e/mmBOE)

GHG EMISSIONS

GRIN hAuS GAS EmISEN

(ktCO2-e/MMBOE)

M A N A G I N G R E S O U R C E S R E S P O N S I B LY m E N S I m G u T O L R I S O S

C O N T I N u O u S P E R F O R M A N C E I M P R O v E M E N T

m O B E TA W O K m A K I G O Y E T

in 2013, total emissions declined from 918ktco2-e in 2012, primarily due to slightly lower flaring and liquid fuel consumption. This lower total, coupled

with increased production, lowered emission intensity.

for further information on oil Search’s greenhouse

gas emissions see our 2013 Sustainability data book.

Long 2013, mak bilong olgeta ges nogut i go

aut i go daun lusim mak bilong 918 ktCO2-e long 2012. Dispela i kamap bikos paia lait bilong ges i go daun liklik na

mipela i no yusim bikpela fiul. Dispela liklik namba

wantaim bikpela wok kamap i daunim strong

bilong ges nogut i go aut.

Bilong kisim moa toksave bilong Oil Search grin

haus ges emisen, yu go long 2013 Sustenabiliti

Data Buk.

8580

73

1,021918 898

11 12 13

hides Gas condit ioning Plant (hGcP), PNG highlands / hides ges

condit ioning Plant (hgcP), PNg hailens

Oil search (pNG) Limited is the only pNG company whose supply chain practices are certified by the chartered Institute of purchasing Australasia oil searcH png em wanpela kampani Tasol long png HUsaT i

gaT wok bilong saplai sen i kisim Tok oraiT bilong cHarTereD

insTiTUTe of pUrcHasing aUsTralasia.

2322 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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C O N T I N U O U S P E R f O R M A N C E I M P R O V E M E N T m O B E TA W O K m A K I G O h E T Y E T

New waste management equipment installed Nupela masin bilong rausim na lukautim ol pipia i kamap

during the year, oil Search completed several major waste improvement projects to increase our ability to reuse, recycle or safely dispose of operational waste. These included:

installing a composting unit on-site to turn kitchen waste into usable soil.

Safely removing legacy waste chemicals.

constructing a landfill cell for waste chemicals on-site.

installing a centrifuge on-site to reprocess sludge waste oil.

improving recycling by installing coloured bins at all sites, creating five waste streams.

The waste improvement programme is an important part of oil Search’s approach to reducing our impact on the environment and improving the health and safety of our workforce.

Insait long yia, Oil Search i pinisim planti projek bilong lukautim ol pipia long kamapim strong pasin bilong yusim gen ol samting bilong wok na long rausim gut ol pipia. Ol dispela masin em kain olsem:

Putim wanpela kompos yunit long ples wok long mekim ol pipia bilong hauskuk i kamap gutpela bilong yusim long graun.

Gutpela we bilong rausim ol pipia bilong marasin bilong wok.

Kamapim wanpela hap bilong karamapim ol strongpela marasin insait long ples bilong main yet.

Putim masin bilong brukim gen ol hap wel i no gutpela long ol i ken yusim gen.

Putim ol kain kain kala rabis dram long olgeta hap long kamapim 5-pela we bilong rausim rabis we em i strongim pasin bilong yusim gen ol samting ol i yusim pinis.

Program bilong stretim pipia em i bikpela hap wok bilong Oil Search long daunim mak bilong bagarap i kamap long envairenmen na long kamapim gut helt na sefti bilong ol woklain.

730 tonnesOF FOOD wASTE FROM THE

INCINERATOR PER yEAR

nupela komposta long rausim 730 tan pipia bilong kaikai

long ples bilong kukim

NEw COMPOSTER TO DIvERT APPROXIMATELy

980 tonnesOF NON-HAzARDOuS

CHEMICAL wASTE RESPONSIbLy DISPOSED

Tromoi gut 980 tan pipia bilong ol marasin i no nap

bringim bagarap

2,140 BBLSOF CRuDE wORTH k$0.4M

RECOvERED FROM SLuDGE wASTE

ol i kisim bek 2140 bbls bilong krud long mak bilong k0.4m

long ol wel ol i no yusim

P E O P L E O L P I P O L

Developing our workforceStrongim save bilong ol wokman na wokmeri

oil Search’s focus for employees in 2013 continued to be workforce development and during the year a number of initiatives were undertaken to ensure we have an appropriately skilled workforce as the complexity of operations increases. Some initiatives included:

a new learning management system was implemented, allowing employees and their supervisors greater visibility and control over all of their on-going training and development requirements.

Technical competencies were defined under the competency assurance management System (camS) gaps identified were addressed in 2013. in 2014, this framework will be extended to other employees where any gaps will be addressed in individual development plans.

Groundwork for the leadership framework was completed via a workshop attended by senior management. Key competencies required in oil Search’s future leaders was determined and will be embedded into 2014 recruitment and development programmes.

Long 2013 Oil Search i lukluk moa long kamapim gut wokfos na i gat planti wok i bin kamap long helpim ol woklain i kisim gutpela save long mekim wok inap long mak bilong ol nupela senis i kamap long ples bilong wok. Insait long yia:

Wanpela nupela menesmen sistem bilong lainim samting i kamap na em i givim sans long ol woklain na ol supavaisa bilong ol long lukluk gut na kontrolim olgeta trening na divelopmen bilong ol.

Long 2013 teknikol kompitensi i kamap klia, bihainim mak bilong Kompitensi Asurens Menesmen Sistem (CAMS) na i gat luksave tu long ol hap i gat wok yet long ol. Na long 2014, dispela fremwok bai i go yet na karamapim ol narapela woklain long inapim wanem wok divelopmen plen ol i gat.

Namba wan wok bilong lidasip fremwok i pinis wantaim wanpela woksop bilong ol senia menesmen. Ol i kamap wantaim lista bilong ol kain save bilong wok em ol lida bilong Oil Search long bihain i mas i gat, na ol i putim dispela i go insait long 2014 rekrutmen na divelopmen program.

Employee development is a key aspect of

oil Search’s approach to sustainability and

legacy in PNG.

rESulTS: 2013 EmPloyEE SuSTaiNaBiliTy SurvEy

Mipela i putim ol woklain i go pas long wok bilong

Oil Search. Dispela bai lusim gutpela mak

bilong sastenabiliti insait long PNG.

OL WOK PAINIm AuT: 2013 SASTENABILITI ASKIm BILONg

OL WOKLAIN

Graduates and apprentices

IN OIL SEARCH DEvELOPMENT PROGRAMMES

95 greduet na aprentis i stap insait long oil search

divelopmen progrem

124EMPLOyEES COMPLETED THE

“Leading the Oil Search Way”

PROGRAMME FOR FIRST TIME LEADERS

124 woklain i pinisim progrem bilong ol namba

wan taim lida ol i kolim “leading the oil search way”

95

2524 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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83%

83 pesen bilong woklain

long png eM ol as ples

png stret

of pNG employees

are

pNG nationals

G L O S S A R y m I N I N B I LO N G O L T O K

bASEL CONvENTION

To protect human health and the environment against the adverse effects of hazardous wastes.

basel konvensen

Bilong lukautim helt bilong ol manmeri na envairenmen long ol hevi i save kamap long ol pipia bilong main i gat strongpela kemikol.

bOE

‘Barrels of oil equivalent’ is a common unit of measure used to present a total volume of different products produced. conversion rate used is 6,000 cubic feet of gas = 1 barrel of oil (159 litres or 35 imperial gallons).

boe

‘Barrels of oil equivalent’ em i wanpela yunit bilong kaunim totol volium o hevi na bikpela bilong ol kain kain prodak ol i mekim. Konvesen o senis ret em i 6,000 kubik fut ges = 1 barel wel (159 lita o 35 Imperial gallons).

EITI

a coalition of governments, companies and civil society that sets a global standard to promote transparency in the oil, gas and mining sectors.

eiTi

Wanpela kibung bilong ol gavman, kampani na sosaiti i gat globol stendet long strongim wok bilong transparensi long wel, ges na main sekta.

GHG

Greenhouse gases (GhG) include methane, chlorofluorocarbons and carbon dioxide. These gases act as a shield that traps heat in the earth’s atmosphere, contributing to climate change. They are measured in kilo tonnes of carbon dioxide equivalents (ktco2-e).

gHg

Grinhaus ges (GHG) igatim methane, kloroflurokabon na kabon daioksait. Ol dispela ges o win i save banisim hit long atmospia na kamapim klaimet senis. Ol i save kaunim long kilo tan bilong kabon daioksait (ktCO2-e).

GLObAL FuND

The Global fund to fight aidS, Tuberculosis and malaria was created to dramatically increase resources to fight these three devastating diseases and to direct those resources to areas of greatest need.

global fUnD

Global Fan long Paitim AIDS, Tubekulosis na Malaria i kamap long strongim ol risos long pait agensim tripela long ol namba wan sik, na long dairektim ol dispela risos i go long ol eria ol i nidim moa.

GOvERNANCE

The system of rules, practices and processes by which a company is directed and controlled. it encompasses authority, accountability, stewardship, leadership, direction and control exercised in the organisation.

wok gavanens

Sistem bilong ol rul, praktis na rot bilong wok we kampani i save mekim wok bihainim na bosim. Em i karamapim atoriti, akauntabiliti, stia, lidasip, na kontrol insait long ogenaisesen.

MMbOE

million barrels of oil equivalent.

mmboe

Milian barel bilong wel ikwivalen.

Diversity in the workplaceKainkain wokman na wokmeri insait long wokples

To frame oil Search’s 2014 diversity objectives, a diversity workshop and a series of interviews with senior management were facilitated by an external consultant.

Supporting our commitment to promoting diversity across all levels, numerous talent and succession reviews were conducted. This included future leaders, technical staff and emerging talent. an annual talent and succession forum will commence in 2014.

utilising the same model that has been used in PNG for a number of years, in 2013 an australian chapter of the oil Search women’s Network was established. This group will champion workplace diversity, sharing knowledge and building their work capabilities and prospects.

To see oil Search’s progress against its diversity objectives, see p 51 of the 2013 annual report.

Long kamapim 2014 divesiti objektiv bilong Oil Search, mipela kisim wanpela konsalten long ausait i kam na holim wanpela daivesiti woksop na sampela taim bilong askim ol sinia menesmen.

Planti reviu i kamap long skelim ol save bilong wok na long givim wok i go na dispela i lukluk moa long kamapim ol lida bilong bihain, teknikol woklain na ol lain i wok long kam wantaim gutpela save long wok. Wanpela enuel foram bai kamap stat long 2014 long lukluk long dispela.

Mipela i bihainim wankain model ol i bin yusim long planti yia, na long 2013 mipela i kamapim wanpela Australia sapta bilong Oil Search Meri netowk. Dispela grup bai go pas long kamapim kain kain divelopmen wok long wok ples, bilong ol Oil Search meri long Australia.

Bilong lukim Oil Search progres bilong daivesiti objektiv, lukim 51 bilong 2013 Enuel Ripot.

P E O P L E O L P I P O L

18 pesen bilong ol png

woklain eM ol Meri

18%

of pNG em

ployees are

Women

976

employees in pNG

976 woklain

long png

2726 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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2 0 1 3 S u S TA I N A b I L I T y R E P O R T S O L 2 0 1 3 S A S T E N A B I L I T I R I P OT

The PNG in-country Sustainability report covers the performance and activities over which oil Search limited had operational control during the year ended 31 december 2013. it covers oil Search’s exploration and production activities in PNG. it does not cover the PNG lNG Project as operational control for this rests with Exxonmobil PNG limited (www.pnglng.com) and oil Search’s activities in the middle East and North africa.

all financial figures are presented in PNG Kina using the following average 2013 conversion rate: PGK1 = uS$0.45

for an electronic copy of any oil Search report, go to www.oilsearch.com/sustainability/sustainability-reporting.html

Enquiries and feedback on our reporting and performance are welcome. Please contact the oil Search sustainability team on [email protected]

head office:oil Search (PNG) limitedGround floorcredit housecuthbertson StreetPort moresbyPapua New GuineaTelephone: +675 322 5599fax: +675 322 5566

Sastenabiliti Ripot bilong PNG i karamapim ol wok we Oil Search Limited

i gat kontrol long pinis bilong yia long 31 Disemba 2013. Em I karapim wok

eksploresen na prodaksen wok insait long PNG na Middle East na Not

Afrika. Dispela ripot ino karamapim PNG LNG Projek bikos ExxonMobil

PNG Limited (www.pnglng.com) i save kontrolim dispela operesen.

Olgeta namba bilong mani i stap long PNG Kina na wantaim eksens ret

bilong 2013, PGK1 = USD 0.45.

Sapos yu laik kisim kopi bilong dispela report, yu ken lukim long websait

bilong mipela long, www.oilsearch.com/sustainability/sustainability-

reporting.html

Sapos yu laik save moa o yu gat sampela toktok long wok bilong

mipela yu welkam tasol. yu ken toktok wantaim Oil Search sastenabiliti

tim long [email protected]

Het ofis:

Oil Search (PNG) Limited

Ground Floor

Credit House

Cuthbertson Street

Port Moresby

Papua New Guinea

Telephone: +675 322 5599

Fax: +675 322 5566

G L O S S A R y m I N I N B I LO N G O L T O K

PROCESS SAFETy

a disciplined framework for managing the integrity of operating systems and processes that handle hazardous substances.

sefTi long wok

Strongpela fremwok bilong menesim operating sistem na ol rot bilong lukautim ol marasin i ken kamapim bagarap.

SuSTAINAbLE DEvELOPMENT

development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

sasTenabol Divelopmen

Divelopmen we i mitim nid bilong nau na i no bagarapim strong bilong ol lain long bihain taim long inapim olgeta laik bilong ol yet.

TAX CREDIT SCHEME

under this voluntary PNG National Government scheme, an agreed % of gross assessable income can be applied to approved infrastructure construction and maintenance by the operator.

Takis kreDiT skim

Aninit long dispela volantri PNG Nesenel Gavman Skim, long ol gros asesabel inkam o winmani bilong opereta igo long infrastraksa konstraksen we i kisim tok orait natu bilong wok mentenens.

TOTAL RECORDAbLE INJuRIES

consists of fatalities, lost work day cases, restricted work day cases and medical Treatment cases.

namba bilong birUna ol rekoTim

Dispela namba i karamapim husait indai, husait ino kam long wok, husait ino inap wok, na husait lusim wok long lukim dokta, insait long ol wokman long Oil Search.

TRIR

Total recordable injury rate, defined as total recordable injuries per million staff hours worked.

Trir

Mak bilong bagarap bilong putim long rekot, em milien haua wan wan ol woklain i mekim.

uNITED NATIONS GLObAL COMPACT

a global platform which brings companies together with uN agencies, labour and civil society to support fundamental principles in the areas of human rights, labour, environment and anti-corruption.

yUnaiTeT nesens global kompek

Wanpela global pletfom we i bungim ol kampani wantaim ol UN ejensi, leba na sivil sosaiti long sapotim ol bikpela astingting bilong humen raits, leba, envairomen na anti-korapsen.

Sustainability reportSastenabiliti Ripot

S U S T A I N A B I L I T Y R E P O R T 2 0 1 3

OS_Sustainability_Report_2013_V7.indd 1 4/04/14 1:40 PM

Transparency reportTransparensi Ripot

T R A N S P A R E N C Y R E P O R T 2 0 1 3

7669_OSH_Transparency_V7.indd 1 4/04/14 1:41 PM

PNG Perspective In-Country ReportPNG long kantri Sastenabiliti Ripot

P N G P E R S P E C T I V E : 2 0 1 3 I N - C O U N T R Y S U S T A I N A B I L I T Y R E P O R T

2 0 1 3 I N - K A N T R I S A S T E N A B I L I T I R I P O T

OSH7651_INCOUNTRY–2013–V8b.indd 1 4/04/14 1:43 PM

Sustainability data BookSastenabiliti Data Buk

S U S T A I N A B I L I T Y D A T A B O O K 2 0 1 3

7649_OSH_2013 Databook_v8.indd 1 4/04/14 1:36 PM

This report is printed on maine recycled. maine recycled is produced with a blend of 60% post consumer waste fibre and 40% fSc® certified virgin fibre. made with fibre derived only from sustainable sources and is produced with a low reliance on fossil fuel energy. maine recycled’s low carbon footprint has been neutralised to zero from seedling to delivery at printer through the purchase of carbon offsets. This chosen offset project is the Kasigau corridor rEdd+ project in Kenya. a programme which makes a difference to not only the precious carbon sink but the local community and people who inhabit the land. Every tonne of maine recycled sold means a$23 will go towards helping this valuable and worthy cause.

designed and produced by armstrongq www.armstrongq.com.au

wE ParTiciPaTE iN

28 oil SE arch iN-couNTry SuSTaiNaBiliT y rEPorT 2013 IN-K ANTRI SASTENABIL IT I R IPOT

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W W W . O I L S E A R C H . C O M