Construction workers at PSA 2 (Georgia)

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1 HEALTH AND SAFETY 9

2 Construction workers at PSA 2 (Georgia)

3 9 9 HEALTH AND SAFETY In this quarter we must again regrettably report a project employee fatality in Azerbaijan and a community safety incident where two children drowned in Turkey. The incidents have been fully investigated and the findings and key lessons are noted below. 9.1 PERFORMANCE AND ACHIEVEMENTS Notwithstanding the tragic incidents referred to above and detailed later in this section, BTC s annual Health and Safety performance is 6 times better on Day Away from Work Case Frequency (DAFWCF) when compared to the industry average as shown in Table 9.1. This represents an improvement on Q2 where the improvement was 5 times better than industry average and on Q1 when the performance was 3.4 times better than the industry average. Table 9.1: BTC versus International Safety Performance BTC Statistics for 2003 BTC Statistics for 2004 (to end of Q3) IPLOCA Statistics for 2002 Contractors submitting data Total Man hours 18,407,936 46,692, ,488,666 Total Days Away From Work Cases ,468 Days Away From Work Cases Frequency Rate Notes: IPLOCA International Pipeline and Offshore Constructors Association 200,000 man hours used for DAFWC frequency calculations The H&S Performance targets (output measures) set for 2004 continue to be monitored on a monthly basis to show performance against the targets shown in Table 9.2. The aim of setting targets is to prevent fatalities, and reduce DAFWCF, Recordable Injury/Illness Frequency rate, and Total Vehicle Accident Rate. Conversely, the aim is to increase the number of input measures specifically - the number of Advanced Safety Audits, STOP Cards and Safety Training hours, as these are positive contributors and tools towards improving safety performance. Table 9.2: BTC 3 rd Quarter Health and Safety Performance Against 2004 Targets Performance Indicator 2004 Target 2 nd Quarter, 2004 Performance 3 rd Quarter, 2004 Performance Fatality Days Away From Work Cases Frequency (DAFWCF) Recordable Injury and Illness Frequency Total Vehicle Accident Rate Advanced Safety Audit Frequency Rate STOP Card Frequency 1,400 1,555 1,899 Safety Training Hours Frequency 3,000 2,852 2,688 Achievements and milestones for each country are described below. 9-1

4 9.1.1 GENERAL Getting HSE Right (GHSER) Self-Assessment conducted Peer Review on Confined Space Entry conducted Supervisors' Safety Leadership Awareness Campaign continues to be implemented Driving Immersion Programme continues AZERBAIJAN H&S Leadership Commitment Workshop completed with senior CCIC Management Phase 1 and Phase 2 of Training Assurance Audit completed for CCIC and SPJV GEORGIA Five Star Safety Incentive Program Implemented on Pipeline Spread I and Spread II site locations Commenced Confined Space Entry Activities for weld inspection program of up to 500-meter entries. Confined Space Training Drills are regularly conducted Employee Annual Heart Day conducted in Georgia TURKEY PT1, PT2 & PT3 celebrated 1,000,000 manhours without a DAFW case Other DAFWC-free figures include: Botaş (1.4MM), Tepe (4.1MM) and Tekfen (7.3MM) 9.2 HEALTH AND SAFETY INCIDENTS BTC reviews the Project s performance on an ongoing basis with a monthly report being produced for the BTC management and our partners. Table 9.3 below is an extract from this report and gives an overview of the numbers of incidents that have occurred. All incidents are fully investigated to ensure that actions are put in place to prevent a recurrence and that lessons learned are shared. Table 9.3: Health and Safety Incidents Project Indicators Jan March 2004 April June 2004 July-September 2004 Man hours 9,998,236 16,139,549 20,554,946 Kilometres driven 17,684,592 26,640,861 41,367,545 Road traffic accidents Fatalities DAFWC Medical treatment and restricted work Recordable illnesses Total recordable injuries and illnesses First Aid cases Near misses

5 9.2.1 SIGNIFICANT INCIDENTS COMMUNITY SAFETY DROWNING IN TURKEY On the evening of Friday 9 th July 2004 an incident occurred on the pipeline ROW on Lot C in close proximity to the village of Yaylacı. At approximately hrs two 11- year-old children were reported missing. Following a search of the area the bodies of the two children were found in a flooded trench. A joint team composed of management representatives from BP, Botaş and Punj Lloyd Limak investigated the incident. The investigation failed to uncover exactly how the children came to be in the water, however the main conclusions from the investigation were related to the lack of firm action taken to remove the hazard of trench flooding and the inadequacy of suitable to barriers to prevent access to the area. Some of the most critical actions taken as a result of this tragic incident were improvements in community awareness of construction risks, increased security patrols to prevent third party access to the ROW. Improvements in fencing design and construction of excavations, dewatering and minimizing the number of open trenches. These actions were taken across all three countries (see Case Studies 5.2 and 8.1). The Lenders were notified as it involved fatalities. AZERBAIJAN WORKER FATALITY A major incident occurred on the pipeline construction at Yevlakh PMV Camp in Azerbaijan on the 27 th August. At around 1105 hours an employee of CCIC, Heavy- Duty Truck Driver, was crushed by the wheels of his assigned vehicle BMC HIAB while working on truck with cab in raised position and engine running. A Turkish national was fatally injured. The job site was shut down until an investigation could be completed. The incident was investigated by a joint team composed of management representatives from BP and CCIC to identify the root causes and develop lessons learned from this incident. The main findings were around leadership, use of defective equipment, risk assessment and compliance with procedures. The Lenders were notified as it involved a fatality OTHER INCIDENTS IN Q Day Away From Work Case Injuries for the quarter are described below: Timekeeper had 3 toes amputated by a side-boom counterweight when he was assisting with maintenance. Worker fell from a tractor and injured his back. Passenger sustained shoulder fracture in a result of a roll over. Worker sustained a broken leg when the coating machine struck him. HIAB truck driver sustained serious head injuries in a collision with a 3rd party articulated truck. Employee suffered concussion and was hospitalised for observation when the vehicle he was travelling in rolled over on ROW. Subcontract worker suffered a broken arm when a screen from a padding machine fell and struck him. Welder was crushed between two pay welders when one of them was moved as he passed between them. 9-3

6 In addition to the above, 9 people received injuries that resulted in restricted work and 33 others received medical treatment for injuries sustained. A total of 186 people required first aid treatment as a result of minor injuries. The main issues were: Hand and leg injuries Slips, trips and falls Eye injuries There were a total of 57 road vehicle incidents against 41,367,545 kilometers driven. The use of seatbelts, head restraints and rollover protection combined with an extensive driver-training program is considered to have positive impact on reducing the number of road traffic accidents and their seriousness when they do occur. BTC continue to strive to improve driving standards and road safety through training and awareness of the drivers, passengers and the community alike. BTC is running a driving safety immersion program developed by BP that is being applied to all BTC and contractor personnel over the next few months. Regular driving safety audits are undertaken to ensure that standards of vehicle, vehicle maintenance, driver training and certification, and general compliance with BTC driving standards are maintained. 9-4

ENVIRONMENTAL AND SOCIAL TRAINING ACTIVITIES

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