wintershall hse annual report 2011

HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION.

PROMOTING RESPONSIBILITY. HSE annual report 2011.

CONTENT.

03 HSE ANNUAL REPORT 2011 CONTENT

04 Foreword.

06 Company profi le.

08 HSE at Wintershall.

16 Safety.

30 Process safety.

36 Environmental protection.

50 Occupational health.

54 Corporate Social Responsibilty.

60 News.

62 At a glance: KPI’s 2011.

64 Contact.

66 Imprint.

FOREWORD.

04 | 05 HSE ANNUAL REPORT 2011 FOREWORD

Energy is our business. And energy is our future.

We want to make our future a sustainable one. For us, sustainability

is achieved through reconciling long-term commercial success with

protection of the environment, safety and health for everyone affacted

as well as our social responsibility.

As the leading German company in the exploration and production

of oil and gas, we are especially aware of our social responsibility.

Long-lasting economic success is not possible without protecting

health, safety and the environment (HSE). It’s our aim to reduce

risks for people and the natural environment. Hence, occupational

health and safety alongside environmental protection are of outmust

importance for us. Wintershall defi nes its own standards for its safe-

ty performance and environmental protection, which usually go be-

yond what is required by law.

2011 was a very emotional year for us. It began with the political

uprising in North Africa. The unrest in Libya, a country we have

been active in for decades, lead us to the decision to close down

and shut in our production for safety reasons. At the same time we

had to evacuate our staff from Tripoli and the oil fi elds in the desert.

Our crisis team in Kassel and in Libya completed this task with

great professionalism. It is thanks to the tremendous efforts of the

local Wintershall staff that the facilities sustained these diffi cult

times undamaged and were able to be restarted in October without

any problems. But at times there was also fi ghting near the produc-

tion facilities in the oases where our staff live. Unfortunately, one of

Dear Ladies and Gentlemen,

our members of staff was killed during the fi ghting. The oil deposit

N-Field in the Libyan Desert was renamed to “Tako Field” to com-

memorate him.

One of the milestones in 2011 was the completion of the fi rst line of

the Baltic Sea pipeline Nord Stream. The pipeline was offi cially

brought on stream at the beginning of November in the presence of

the heads of government of Germany and Russia, Angela Merkel and

Dimitri Medvedev. The consortium paid close attention to environ-

mental protection and safety aspects during the planning and con-

struction of the pipeline. At the same time, one of the largest Euro-

pean infrastructure projects was completed – the construction of

the 470-kilometer-long connecting pipeline OPAL, which is going to

transport the gas arriving through Nord Stream in future. An impor-

tant success was achieved in Norway in 2011, with Wintershall rais-

ing its share in the Maria fi eld and starting the development of the

reservoirs Knarr and Luno. Additionally our fi rst production as opera-

tor in the British North Sea was launched with the Wingate platform.

Despite the special circumstances, we achieved a solid economic

performance in 2011. The company was able to increase its busi-

ness volume, driven by higher sales volumes in Natural Gas Trading

and higher Oil & Gas prices compared to the previous year by 12%

to €12.1 billion. EBIT decreased by 13% to €2.1 billion due to lower

production levels in Libya. The higher crude oil price partially com-

pensated for the lower production volumes.

In the fi eld of occupational health and safety our ambitious goal is

zero accidents in all our activities. We achieved that target for our

own employees in 2011, and can thus report zero accidents for the

second year running. That makes me proud! The safety perform-

ance of our contractors also improved, with just fi ve lost time inci-

dents. Following the serious accidents in 2010, it is evident that our

extended catalogue of measures is taking effect.

Our targets for environmental protection support sustainability. We

will discontinue fl aring associated gas in all routine operations by

the end of 2012. We have already almost succeeded with an imple-

mentation level of more than 95%. The next target has been already

set: we want to reduce specifi c CO2 emissions for the transport of

natural gas by 10 percent by 2020.

We also intend to increase our investments in a sustainable future.

At the top of our agenda is the development of environmentally

friendly solutions for the exploration and production of hydrocar-

bons. These include genuine innovations, such as the biopolymer

Schizophyllan. The idea for this technology came from nature itself.

The biopolymer is biodegradable and eco-effi cient if applied in oil

production. Wintershall wants to develop a new environmentally

friendly technology based on this innovation together with BASF in

order to signifi cantly increase the oil recovery rates of reservoirs.

As you will be able to discover, the 2011 HSE Annual Report focuses

on the subject of process safety. We apply the highest standards

both on- and offshore. Before a facility is constructed and starts

operation, numerous safety assessments and inspections are car-

ried out in which all eventualities are taken into account. Further-

more, as usual the report contains a summary of our activities in

protecting health, safety and the environment in 2011 as well as

key performance indicators, which have been verifi ed by the audit-

ing fi rm KPMG.

Our success is attributable fi rst and foremost to our competent,

innovative, extremely motivated and, above all, healthy employees.

For this reason, I fi rmly believe that we are well prepared and that

together we will overcome the challenges ahead of us, for a sustain-

able and safe future.

Wintershall – promoting responsibility.

Dr. Rainer Seele

Chairman of the Board of Executive Directors

06 | 07 HSE ANNUAL REPORT 2011 COMPANY PROFILE

Wintershall, based in Kassel, Germany, has been

actively involved in the exploration and production of

crude oil and natural gas for more than 80 years.

Wintershall focuses on selected core regions, where

the company has built up a high level of regional and

technological expertise. These are Europe, North

Africa, South America, as well as Russia and the

Caspian Sea region. It is also expanding its activities

in the Middle East. The company, a wholly-owned

subsidiary of BASF, is now the largest German pro-

ducer of crude oil and natural gas, and with its gas

trading and transport subsidiaries, is also an important

gas supplier to the German and European market.

Core regions and

activities of Wintershall.

SOUTH AMERICA

RUSSIA

CASPIAN SEA REGION

MIDDLE EASTNORTH AFRICA

EUROPEGERMANY

HSE AT WINTERSHALL.

08 | 09 HSE ANNUAL REPORT 2011 HSE AT WINTERSHALL

Wintershall has laid down its position on HSE in a policy. Our HSE policy

is a core element of how we see ourselves and an important embodiment

of the key objectives of our company.

OUR PHILOSOPHY.

The objective of Wintershall’s HSE (Health, Safety and Environment)

management system is to systematically reduce the risks to people

and the natural environment. Our policy is that economic success

do not prevail over health, safety or environmental issues. Nothing is

so urgent or important that Wintershall would neglect the principles

of occupational safety and environmental protection.

Values, standards and guidelines serve to protect the public and the

environment, but, fi rst and foremost, also our most important resource:

our staff. Our aim is to create the best possible working conditions

for our employees as well as opportunities for personal development,

enabling them to realize their potential.

Policy.

Policy for Health, Safety and Environment Protection (HSE) As an important member of the BASF Group, Wintershall operates in the area

of exploration and production of oil and gas. In this Wintershall combines fi nancial

success with societal accountability and protection of the environment.

Therefore Wintershall’s management is strongly committed to adhere to the following

HSE-principles:

■ We view HSE as an integral part of all our activities and strive for continuous

improvement of our HSE performance. As a contribution to this we set our-selves

ambitious goals and develop tailor-made HSE-solutions.

■ We are convinced: “Everybody counts.” – Everyone working within the Wintershall

organization contributes to the implementation of this policy through well-thought-out

and dedicated action. This is equally valid for contractor companies of Wintershall.

■ We are going to perform our worldwide activities in such a manner, that we fulfi ll our

societal responsibility, especially concerning our employees, contractor employees,

our neighbors and the general public.

■ We rise to our responsibility for the global climate protection.

■ We pledge ourselves to adhere to international conventions, the local laws and

our self-set standards while performing our worldwide activities.

Economic success does not prevail over health, safety or environmental issues. Nothing

is so urgent or important, that justifi es neglecting these HSE principles.

The Board of Executive Directors

Dr. Seele Bachmann Dr. Tiessen Dr. König Mehren

HSE management system.

Our HSE policy is not an empty promise: it is fully integrated in all

our activities. Our HSE management system ensures that all our

principles for protecting health, the environment and occupational

safety are adequately taken into account. Our intelligent HSE man-

agement system helps us to reliably achieve what we really believe

in: combining commercial success with safety standards, social re-

sponsibility and environmental protection.

Thus, in the planning, development, implementation and monitoring

of our HSE policy we work according to an internationally recog-

nized standard often used in the oil and gas industry – known as

the 12-element model. These 12 elements are then grouped into

four steps. The result is a consistently effective way of implement-

ing our HSE policy.

We are constantly striving to improve the company-wide HSE man-

agement system (WINS) by conducting an intensive experience ex-

change and dialog between experts from the headquarter, Operat-

ing Companies (OPCOs) and Business Units (BUs) at Wintershall’s

global locations through our involvement in committees of the Inter-

national Association of Oil and Gas Producers (OGP) and national

associations such as the German oil and gas industry association,

Wirtschaftsverband Erdöl- und Erdgasgewinnung e.V. (WEG).


SYSTEMATIC HSE – SUCCESSFUL AND SAFE.4 STEPS – 12 ELEMENTS

Well-planned 1. Policy, leadership & commitment

2. Hazards, risks, legal

& business requirements

3. Objectives, targets & HSE Programmes

Implemented 4. Organisation structure, roles & responsibilities

5. Training & competence

6. Communication & consultation

7. HSE MS documentation

8. Operational control

9. Emergency preparedness & response

Notifi ed 10. Incident reporting, investigation

& corrective action

11. Monitoring & measurement

System improved 12. Management review & system improvement

What was the biggest challenge in 2011?

That was clearly the unstable political situation in Libya. In order to

avoid any risks for the people and the environment, in February the

oil production facilities in the desert were shut down in a controlled

manner and shut in safely. At the same time, our staff had to be evac-

uated under diffi cult conditions. At that time it was not predictable

that we would be able to resume production already in October. Due

to the forward-thinking safety concept and our Libyan colleagues

the facilities survived the political unrest unscathed and we were

able to restart production without any problems.

Which other issues were in the focus?

As far as our own employees are concerned, 2011 was the second

year in a row in which we had no lost time incident (LTI). This shows

that safety consciousness is fully integrated into our daily work. The

occupational safety record of our contractors is also very encour-

aging; there were fi ve LTI’s, none of which were severe. We see this

as proof that the HSE requirements we developed for external

companies are taking effect.

Furthermore, the long-distance gas pipeline OPAL was completed

in 2011 without any incidents and connected to the Nord Stream

Baltic Sea pipeline. Construction of the NEL pipeline also continues

to progress fast and safely.

Where do the challenges lie in the next few years?

Sustainability is an issue which will require more of our attention in

the coming years. Our parent company BASF has made sustain-

ability a cornerstone of its corporate development. At the top of the

agenda are subjects such as energy effi ciency and climate protec-

tion, emission reduction and developing sustainable products and

technologies. We are aware of our responsibility to the environment

and society. Hence, we not only ensure that our actions make good

economic sense; we are also a pioneer in our industry. For instance,

we set ourselves ambitious targets for reducing emissions, we have

made a commitment to act sustainably in our exploration and pro-

duction activities, and we conduct research into green technology

for our production. In the coming years we will increase our efforts.

IN DISCUSSION:

Corporate HSE Manager

Guido Schnieders talks

about the current and future

requirements of health, safety

and the environment.

Sustainability is increasingly important.


ASSUME RESPONSIBILITY.

Acting sustainably.

One example for work performed in protecting the environment and

climate is our “No Flaring Policy”, under which we have committed

to cease fl aring associated gas during routine operations by 2012.

Already 95 percent of the associated gas produced during oil pro-

duction is used effi ciently. Existing facilities have been retrofi tted to

accommodate this objective and new facilities are designed with

integrated associated gas utilization. This saves around two million

tons of CO2 a year. Consequently, Wintershall meets the highest inter-

national standards for environmentally friendly oil production.

New environmental objective for 2020.No Flaring Policy.

Voluntary commitment.

As Germany’s largest producer of crude oil and natural gas, Winters-

hall is aware of its responsibility towards nature and the environ-

ment and principally works with the highest standards in terms of

safety, environmental protection and transparency. For example,

the company foregoes the use of drilling and fracing technology in

sensitive regions such as water protection areas. We also limit our

drilling activities to a few central well sites so as to use as little land

space as possible. We do not use hydraulic fracturing in the immedi-

ate vicinity of old coal and other mines. The fracturing liquid we use

for fracing does not exceed the currently applicable water hazard

classifi cation level 1 (= slightly hazardous to water). Wintershall sup-

ports its suppliers in developing more environmentally friendly fracing

solutions. Also we only use fracing technology when the well has suc-

cessfully passed a pressure test. Moreover we regularly inspect the

intactness of the integrated casing of our wells. The safety stand ards

formulated by Wintershall also apply to all contractor companies.

Wintershall standards for a maximum of environ -mental protection, safety and transparency.

OUR ACTIVITIES.

The exploration, production and transport of crude oil and natural gas always also entails an intervention in the social

and natural environment that requires particular care. Even before we start our operations, we assess the potential

impact on people and the environment, taking social aspects and the protection of cultural heritage into account.

We are constantly working on improving all our processes to use resources even more effi ciently and further minimize

the impact on people and the environment.

The Wintershall group has already set itself a new environmental

objective: by 2020 we aim to reduce the CO2 emissions by 10 per-

cent (reference year: 2010), generated through transporting natural

gas, based on the volume of the gas and the transport distance

through the pipeline network. This objective shall be achieved by

implementing energy effi ciency measures within the WINGAS group.

To this the application of environmentally friendly technologies will

contribute, such as combined heat and power facilities, which use

the waste heat from existing plants to generate energy.


HOW WE WORK.

Project management.

Wintershall has many years of experience in developing reservoirs

that are diffi cult to access and are geologically challenging. Hence,

every new exploration project places high demands in terms of plan-

ning. Above all, exploration in unknown regions requires particular

support for the employees and contractors on the ground. That is

why HSE experts support the project teams from an early stage.

Apart from feasibility studies for a project, examination of environ-

mental and safety aspects is an integral part of planning. This includes

environmental impact studies and plant safety analyses, as well as

selection of contractors on the basis of HSE considerations. During

advance expeditions to the exploration area, risks are identifi ed and

suitable measures to minimize them are defi ned and summarized in

an HSE project plan.

Safety engineers regularly supervise and control activities during

the execution phase. Emergency concepts formulated at the out-

set are constantly reviewed and adapted as necessary.

Compliance with the relevant regulations and HSE standards is

ensured also in the operating phase. All projects at Wintershall are

planned and carried out according to the same HSE procedures.

Many projects in the oil and gas industry are unimaginable without

the support of external experts. That is why Wintershall uses contrac-

tors in various areas, including large specialist fi rms to conduct drill-

ing campaigns, construction companies in infrastructure projects or

smaller subcontractors at the administrative locations.

Wintershall’s selection criteria for contractors are not limited to com-

mercial aspects. Environmental protection as well as occupational

health and safety standards are also taken into account in assess-

ing new and existing contractor re lation ships. With regards to com-

pliance with HSE standards, the Winters hall Group places the same

high requirements on its contractors as on its own employees.

Consequently, the company applies strict criteria in the selection of

contractors and reviews these criteria regularly.

Wintershall promotes safety at work through risk assessments,

procedures, seminars, training courses and audits. Reporting and

investigation of incidents plays a key role in prevention and helps

increase the standard of safety even further. Wintershall has estab-

lished a reporting system that includes all locations worldwide. De-

tailed analysis of incidents helps to identify and assess their causes.

Incidents where there was a high severity potential are also investi-

gated. The results are used to derive measures to prevent incidents

in future.

Wintershall’s HSE management system purpose is to prevent inci-

dents. However, in order to be able to respond to unexpected events,

Wintershall has a clearly defi ned and interdisciplinary crisis man-

agement system. Only a planned and organized approach ensures

the best-possible prevention and management of emergencies.

Emergency plans, regu lar safety exercises and annual drills for ma-

jor incidents aim to ensure an ideal response. Training courses help

sensitize and prepare employees. HSE experts and management

are responsible for drawing up, maintaining and supervising the

measures and documentation for emergency planning.

Contractor management.

Incident management.

Crisis management.

SAFETY.

16 | 17 HSE ANNUAL REPORT 2011 SAFETY

ALWAYS THE NUMBER ONE PRIORITY.

Responsibility and safety are fundamental values that form the basis for

our corporate philosophy. Employee safety is Wintershall’s number one

priority – whether the employees are our own or from contractors.

Responsibility, a pro-active approach and personal commitment from

everyone is vital to ensure a high standard of safety in the long term.

Our managers take on responsibility for their employees so that every

single one of them feels safe at work and returns back home healthy.

The same also applies to our contractors, who have to meet strict

requirements but are also actively supported in their HSE work.

SAFETY FIRST.

18 | 19 HSE ANNUAL REPORT 2011 SAFETY

All the data presented in this report and bases for calculations are in

line with national and international standards in the E&P industry. As

a member of the Inter national Association of Oil and Gas Producers

(OGP) and the German oil and gas industry association, Wirtschafts-

verband Erd öl- und Erd gas gewinnung e.V. (WEG), Wintershall uses

the defi nitions of both internationally recognized associations when

compiling data.

We can look back on a successful year. Despite the numerous

challenges in 2011 all our own staff worked without any accidents

with lost time, which means that the Wintershall Group can now

look back on two consecutive years without a lost time incident

(LTI). Hence, we had an LTIF (Lost Time Injury Frequency) of 0 and

achieved our company’s internal targets. Wintershall is one of the

most successful companies in the BASF Group in terms of its occu-

pational safety, as well as in the German E&P industry.

However, there is still potential for improvement among the con-

tractors working for the Wintershall Group, even though the LTI fre-

quency decreased signifi cantly and there were no serious accidents

in 2011. There were fi ve lost time incidents among our contractors.

Hence, the lost time incident frequency rate fell from 1.01 in 2010

to 0.75 in 2011. Following the serious accidents in 2010, numerous

further measures were defi ned for avoiding such cases in future.

These measures have been showing results in 2011.

Our goal in 2012 is to avoid any type of incident. With enhanced

standards and even more commitment, we are working to continu-

ously improve the high level of safety and our performance.

Regular training sessions help to avoid accidents but also inform the

staff how to behave in an emergency. In 2011 seven large drills were

carried out in the Wintershall Group, including an interdisciplinary oil

spill response training in Norway, a fi re drill in Moscow with the

participation of joint venture partners, and the annual major exercise

for emergency response at the Rehden natural gas storage facility.

Key Performance Indicators

Occupational Safety 2011.

Wintershall / WINGAS Contractors

Year 2010 2011 2010 2011

Number of employees* 2,164 2,281 4,326 3,213

Working hours 4,551,956 4,158,736 8,879,101 6,651,894

Fatal accidents (FAT) 0 0 3 0

Accident with > 1 day lost (LTI) 0 0 6 5

Frequency per million

working hours (LTIF)0 0 1.01 0.75

*Excluding temporary employees; part-time employees pro rata

20 | 21 HSE ANNUAL REPORT 2011 SAFETY | ACTIVITIES

OCCUPATIONAL SAFETY WORLDWIDE:

OUR ACTIVITIES IN 2011.

Wintershall has been active in the exploration and production of crude oil in Libya since 1958. In view of

the political situation, at the end of February 2011, production in the desert was shut down and safely

shut in for safety reasons. The staff in Tripoli and in the oil fi elds in the Libyan Desert, as well as external

people, who sought refuge in our camp, were evacuated in a large-scale operation.

Following the end of the confl ict, Wintershall restarted its oil production in Libya in October whilst observing

the strictest safety and security measures. In concessions 96 and 97 the facilities in the desert were

started up by the Libyan colleagues in a controlled procedure. Thanks to a forward-looking safety con-

cept, the facili ties survived this diffi cult time unscathed; Libyan Wintershall staff continuously serviced the

facilities, so no damage was incurred to the facilities and the environment during the time when they were

shut down.

During the unrest in Libya there was at times fi ghting near the production facilities in the oases where our

staff live. Unfortunately, to our great dismay, a Libyan member of staff from Wintershall was shot during

the fi ghting. The oil deposit N-Field in the Libyan Desert was renamed “Tako Field” to commemorate him.

Uprise in Libya.

Producing natural gas together – ensuring safety together.

Wintershall has been cooperating successfully with Gazprom, the

world’s largest natural gas company, for more than 20 years. The

cooperation goes along the entire value chain, from production

through transport, to sales in joint ventures. Wintershall produces

natural gas in Russia in two joint ventures with Gazprom. The Russian

gas fi eld Yuzhno Russ koye was offi cially commissioned in 2007.

This was the fi rst time that a German company had been directly in-

volved in natural gas production in Western Siberia. ZAO Achimgaz,

a 50/50 joint venture with Gazprom, produces natural gas and con-

densate in Novy Urengoy, about 3,500 kilometers north-east of

Moscow. The joint venture is currently producing natural gas and

condensate from six wells from a section of the deep-lying Achimov

horizon of the Urengoy fi eld.

HSE in Achimgaz.

Wintershall is not only a responsible operator. The high HSE stand-

ards also apply where Wintershall is involved in projects but the

operatorship is assigned to our partners or joint ventures. This is

especiallly applicable to our Russian activities.

Wintershall embraces its responsibility as a shareholder or partner

for these activities. Even projects that are not operated by Wintershall

itself are subject to a multi-tier HSE assessment process. Particular

emphasis is placed on integrating process safety considerations

early in the project, as this allows hazards to be avoided through

intelligent design.

The processes set up at Wintershall for assessing the HSE project

risks are essentially managed using a hazard-based approach; the

Russian legislative system is mainly guided by a descriptive ap-

proach in order to determine protective measures. Together with

our Russian partners, we supported Achimgaz by the development

of a concept which complies with the local legal requirements and

also takes into account a tailor-made and risk-based HSE concept.

At Achimgaz the pilot phase was successfully completed in 2011.

The project is now on the verge to full fi eld development. Special

HSE challenges arise through the erection of extented facilities and

the integration into existing systems. In order to meet all HSE re-

quirements, the project was fi rst planned by a Russian design insti-

tute. In the second phase, the safety concept, which contains

safety-relevant measures for the planning phase, construction and

operation of the fi eld, was analyzed by an interdisciplinary team in

a HAZOP-Study (HAZOP = Hazard and Operability Study) and

measures to avoid or mitigate hazards were introduced. The HAZOP

team consisted of staff from the design institute, from the Achimgaz

joint venture, Gazprom, Wintershall and an independent specialist.


Russia.

CHALLENGING CLIMATICAL CONDITIONS.


Wintershall is one of the largest license-holders in Norway, with over

40 licenses and more than 20 operatorships. In 2011 the company

invested around half of its global exploration budget in the Norwegian

continental shelf alone. Wintershall is planning investments of more

than one billion euros in Norway until 2015.

Offshore oil spill response training in real-life conditions.

At the beginning of June 2011, the Norwegian Clean Seas Associa-

tion for Operating Companies (NOFO) conducted its annual oil spill

response exercise in Stavanger, Norway. Following consultation

and in cooperation with the Norwegian authorities, the coastguard

and other organizations, oil spill response training under real-life

conditions in the open sea was conducted. As part of the exercise,

oil spill response equipment, such as the use of dispersant, skim-

mers and barriers was tested. The exercise also evaluated the co-

ordination between the emergency forces, consisting of coastguard

oil recovery vessels, observer planes and helicopters, satellites as

well as the operations center.

NOFO is a non-profi t organization formed in 1978 for responding to oil

spills and accidents on the Norwegian continental shelf. Winters hall

is one of the 25 E&P member companies. With its know-how and

re sources, NOFO is considered a global benchmark.

Norway.

Successfully drilled.

Wintershall continues to expand its activities in the Middle East.

The company currently operates two exploration blocks in the

Emirate of Qatar. Since 2008, Wintershall has held the gas explora-

tion rights for Block 4N in Qatar’s territorial waters – an area of 544

square kilometers, with a water depth of around 70 meters. In the

third quarter of 2009, experts used 2D/3D seismic surveys to explore

the area. In 2010/2011, the fi rst exploratory well in the Khuff For-

mation of Block 4N was drilled. The well WQ4N-1 was drilled and

tested successfully. There were no lost time incidents during the

drilling campaign.

Sustainable commitment: Wintershall honoured in Qatar.

Wintershall has been honoured by Qatar’s energy ministry for its

contribution to the fi rst sustainability report 2009/2010 for the en-

ergy and industry sector in Qatar. The “Sustainable Development

In dustry (SDI) Report” presents initiatives and projects on sustain-

ability by the organizations and companies active in Qatar. Wintershall

is considered a pioneer in this fi eld. It was one of only 17 compa-

nies that afforded a look behind the scenes and it provided com-

prehensive material on its efforts in the area of sustainable develop-

ment. As a company that is keenly aware of its responsibility, it is

important for Wintershall to combine commercial success with a

sustained commitment to environmental protection, occupational

health and safety.

Qatar.


The fi rst line of the Nord Stream pipeline was formally commis-

sioned in 2011. After completion of the second line in 2012, the

1,224-km-long Baltic Sea pipeline will have an annual transport

capa city of up to 55 billion cubic meters and supply the European

Union with Russian natural gas for at least 50 years.

The technical design and the route were planned meticulously

before the work to lay the pipeline commenced in April 2010 to

ensure the safe and environmentally friendly construction and oper-

ation of the pipeline. In addition to the national permitting process-

es in the fi ve countries with territorial waters crossed by the pipe-

line, the concerns of all the countries bordering on the Baltic Sea

were taken into consideration in an international consultation proc-

ess in line with the Espoo convention.

The Nord Stream consortium also invested more than 100 million

euros in extensive environmental assessments in the Baltic Sea.

Another 40 million euros are earmarked for the comprehensive en-

vironmental monitoring program in order to make sure there are no

impacts on the environment.

Nord Stream comes on stream.

Promote HSE awareness.

As part of an ongoing initiative to enhance awareness of HSE, the

business unit responsible for sales at WINGAS launched an HSE

award, awarded once every quarter, for its European staff in Ger-

many, the UK, Belgium and the Netherlands. The fi rst HSE award

went to Brussels. A member of staff there developed an interna-

tional information package for all European company car drivers.

This pack contains details of what to do and who to con tact in the

case of repairs, damage, theft, accidents or breakdowns abroad.

Germany and Europe.

Pioneer in pipe coatings.

For the construction of the OPAL and NEL pipelines, a new method

for the coating of pipelines made of glass fi ber reinforced plastic

(GRP) was used for the fi rst time. When pipelines have to be forced

through the earth instead of laying them in a trench, for example

when crossing rivers or streets, a special resinous coating is neces-

sary to protect the pipes. A supplier of the WINGAS Group, BKP

Berolina, developed a procedure that allows the use of styrene-free

resin for winding the fi ber glass fi laments round the pipe. Up until

that point there was no alternative to adding styrene, a substance

that holds potential risks to health, to harden the resin. The air dis-

charged during the processing had to be withdrawn in a complex

suction process. The styrene contained in the resin became harm-

less once the synthetic had fully hardened. The new coating saved

around 64 tons of styrene per year as well as the energy for the

suction process and for the combustion of the waste air fl ow. About

500 kg of resin per coated pipe are required for the 5mm-thick

protective shield. The WINGAS Group actively supported and pro-

moted the development and was the fi rst company to install pipes

coated with the new resin. The new process helps to improve occu-

pational safety and health protection.

OPAL commissioned. NEL construction started.

The Baltic Sea pipeline Nord Stream will be connected to the exist-

ing European pipeline network via two connecting pipelines, OPAL

(Ostsee-Pipeline-Anbindungs-Leitung – Baltic Sea Pipeline Link) and

NEL (North European Gas Pipeline). The 470-kilometer-long OPAL

pipeline runs from the Nord Stream landfall point in Lubmin towards

the Czech Republic in the south. The second connecting pipeline,

NEL, stretches over 440 kilometers and will transport natural gas to

the west.

OPAL was already completed in the summer of 2011 after just

22 months of construction work. Up to 2,500 workers have laid

over 26,000 pipe segments, each about 18 meters long and weigh-

ing 15 tons, between the Baltic Sea coast and the Ore mountain

range since September 2009, thus realizing western Europe’s big-

gest natural gas pipeline. Construction work for the NEL began in

parallel in March 2011.

In 2011, 1919 HSE inspections were conducted on both construc-

tion sites to check that the prescribed measures were being complied

with. There were no lost time incidents on either construction site.


Wintershall drilled an overall of 21 new wells in Emlichheim in 2011

in order to secure crude oil production there for at least another 25

years. Despite the challenging conditions – 15 of the 21 wells had

to be drilled horizontally – all the work was completed successfully

and without incident. The drilling contractor was able to use Win-

tershall’s permit to work system and later integrated this into its

own standards. Permits to work are documents in which the meas-

ures for risk mitigation are prescribed in writing. In addition, higher

safety standards were applied to all drilling operations as a precau-

tion, as the fi elds contain a high level of hydrogen sulfi de (H2S).

Hence, all the staff were given special training in a purpose-made

H2S training center on the grounds.

Germany and Europe.

Shaping domestic production.

A new safety fi lm made in 2011 shows how safety

works at the headquarter in Kassel and how every-

one can help to improve the safety performance

there. The fi lm does not only inform new employees

and contractors of the Wintershall Group about

safety regulations. For the fi rst time visitors receive

an induction, as well as providing tips for health and

environmental protection. It covers all the relevant

HSE subjects from A to Z in 20 scenes and is accom-

panied by a new induction concept launched at the

beginning of 2012.

Safety video fi lmed for Wintershall headquarters in Kassel.

Salt water, violent storms and high waves: offshore platforms are exposed

to extreme conditions. They are often situated hundreds of kilometers

from the mainland and allow us to access important oil and gas reserves.

Hence, Wintershall applies special safety measures in its exploration and

production activities offshore. The company’s own internal standards go

beyond the legal requirements and apply to the construction and operation

of the facilities. These standards don’t just focus on protecting the staff,

but also on protecting the environment.

30 | 31 HSE ANNUAL REPORT 2011 PROCESS SAFETY

Safety offshore.

PROCESS SAFETY.ONSHORE AND OFFSHORE.

Onthewaytohelideck

OFF SHO RESAFETY.










Safety offshore.


Onthewaytohelideck

A made-to-measure HSE concept is drawn up for every platform as early as the planning stage. Indepen-dent inspectors assess the possible dangers and risks. Responsibilities are defined precisely before any drilling begins; including conduct if an incident arises. Even though the platform operates largely auto-matically, particular attention is paid to the training, theoretical and practical, of the platform staff, for example, instruction and exercises on safety-relevant subjects such as fire suppression protection or handling hazardous substances. Survival training in ice-cold water is mandatory every four years for all those who work on offshore facilities. Incidentally, it doesn’t make any difference to the safety concept whether the platform is for oil or gas reserve.

The world’s largest offshore production area is the North Sea. Wintershall operates here with its system for Remote Controlled Operations (RCO), one of the most modern radio monitoring and control systems. 20 of the 27 platforms operated there are monitored and controlled from the control room in Den Helder in the Netherlands. The control room is manned round the clock by two members of staff. This system reduces the number of flights to the platform required and thus enhances safety. Wintershall has also installed an eight-phase barrier system for all production platforms that ensures safety. It begins with the safe design of the facility and covers everything from warning, protection and shut-down devices to precautions for evacuating the platform. Each barrier is composed of a combination of safety mecha-nisms and equipment. If one barrier fails, the next one takes effect. Even in the unlikely event of several barriers in the safety system failing at the same time, the integrity of the facility would still be intact at all times.

A SELF-CONTAINED WORLD: SAFETY ON PLATFORMS.

An accident such as the one that took place in 2010 in the Macondo prospect, in which a blowout on a platform led to an oil spill, is unlikely to happen on a Wintershall platform, either in the North Sea or in the other core regions: the company does not generally explore or produce in deep waters and is not involved in such drilling projects either. Operations are conducted in compliance with the local regula-tions. If proven industry practice or regulations are in place, such as submitted by OGP (International Association of Oil & Gas producers) or IADC (International Association of Drilling Contractors), Wintershall applies the higher level of scrutiny. In addition, Wintershall installs several shut-off valves all independent of each other with all drilling projects which can be controlled automatically, mechanically or by remote control and which close off the borehole in the event of an accident. The blowout-preventers (BOP) are manufactured and operated in accordance with the regulations of the American Petroleum Industry and the local statutory requirements.

Nevertheless, the event in the Gulf of Mexico prompted Wintershall to review its own concepts for pre-venting and curbing oil spills. A working group set up at the beginning of 2011 drew up various measures for this, some of which have already been implemented. For example, the skills of the drilling personnel are being enhanced, partly through special drilling modules in the company’s own training program for young professionals, SPEAD. In addition, a standardized, software-supported workflow is to be intro-duced for all drilling projects. At the same time Wintershall is developing its own expertise in dealing with oil incidents. For example, the company is actively involved in the newly founded Oil Spill Response Joint Industry Project under the supervision of the OGP. The purpose of the project is to develop new tech-nologies to prevent and control oil accidents. Wintershall is also a member of the Norwegian Clean Seas Association for Operating Companies (NOFO), which is considered a benchmark worldwide.

Hence, in the field of environmental protection, Wintershall has a strong international and interdisciplinary network. Sustainability is also becoming an increasingly important aspect of HSE management. Platforms have an average life of 25 years and are usually dismantled and used as scrap after that, but Wintershall recycles its platforms. For example, the two natural gas platforms L5-C and E18-A in the Dutch North Sea were completely refurbished and modernized and were able to produce again in another location. Most parts of the facilities were re-used, so fewer materials and less energy were required compared to constructing a new platform, and this reduced emissions too.










Safety offshore.


On the way to helideck









HSE ANNUAL REPORT 2011 PROCESS SAFETY

Safety offshore.

PROCESS SAFETY.ONSHORE AND OFFSHORE.OVERVIEW OF THE EIGHT BARRIERS.

1. The Structural Integrity concerns the structural safety of the facility beneath and above the surface of the sea. The underwater facilities are regularly checked by divers or remotely operated vehicles and the results documented.

2. Hazardous Material Containment is ensured by the downhole safety valve, for example, which is installed about 100 meters below the sea bed. Like other safety valves on the Christmas trees, it prevents oil or gas from leaking.

3. Ignition Prevention: but if oil or gas were to leak, there is no possibility of fi re or defl agration, for all the electrical parts on the platform, for example compressors, are earthed and constructed in such a way that they do not create any sparks.

4. Fire and Gas Detection: There are sensors on all decks that detect gas or open fi re and trigger the alarm with sirens or light signals. The alarm can also be triggered manually by members of the crew.

5. Various Protection Systems are installed to limit the impact of any incident. These include sprinkler systems as well as fi xed and mobile fi re extinguishers on the decks. Fire-fi ghting water pumps on the lower deck draw in sea water.

6. Emergency shut-down and blow-down systems depressurize the facility rapidly in the case of an emergency – through decompression via the venting system fl ue – and seal off hazardous substances. The shut-off valve below the main deck, for example, seals off the platform from the export pipeline.

7. Emergency Response includes a range of provisions to protect the crew and maintenance staff in case of danger, including safe evacuation rooms, helicopter landing sites, emergency power generators and intact communication links.

8. Rescue Equipment for saving people’s lives: If the crew has to leave the platform to get to safety, they can use the engine driven lifeboats and rescue rafts. Evacuation drills take place regularly.

A selfcontained microcosm, equipped with the latest technology: That is the F16-A production platform in the Dutch sector of the North Sea.

THE PLATFORM

HelideckThe crew of the F-16A is flown to the platform by helicopter and usually stays on it for one week.

LifeboatsA crane, called the davit, lowers the lifeboats, which each can hold 32 people, into the water to safely evacuate the crew in the event of an emergency.

Fire and gas detectionAll the decks have sensors that respond to gas or naked flames and trigger an audible and visible alarm. The system also initiates automatic mitigation actions.

Pipeline shutoff valveIn the event of an emergency, the connection between the platform and export pipeline can be closed to prevent from flowing back to the platform.

Export pipelineThe produced and processed gas leaves the platform via the 24-inch export pipeline, which is connected to the Noordgastransport system. The export pipeline’s condition is inspected regularly.

Eight barriers ensure safetyA system of eight barriers, each consisting of many different protective equipment and measures, ensures safety on a platform.

Well-anchored The platform’s frame is called the “jacket”

in technical jargon. The construction is anchored at the bottom of the sea by piles

that are embedded 58 meters deep into the seabed. Even 20 meter high waves cannot

harm the jacket.

InspectionThe platform is inspected by divers or a remote-controlled diving robot

every two years, to ensure the integrity of the steel structure.

Fire-extinguishing systemsPortable and fixed fire extinguishers and sprinkler systems have been installed at

strategic points on all decks.

Christmas TreeEvery well is equipped with a

christmas tree providing various shutoff safety valves that can be

closed if required.

Technical ventilationClosed areas are ventilated by

technical means to prevent a hazardous atmosphere.

Subsurface safety valveIf the safety valve around 100 meters below the seabed is shut down, gas stops flowing from the reservoir to the platform.

AntennaThe team on the F16-A platform can communicate with the shore at any time via a microwave link.

VentstackNatural gas can be routed safely away from the platform via the ventstack, for example

during maintenance work.

6,000,000 cubic meters of natural gas a day can be processed on the F16-A.

1degree is the slope of thehelicopter deck, to ensure that water is drained from the surface.

2,750 medium-sized cars weigh as much as the visiblepart of the platform.

GRAFIK: KIRCHERBURKHARDT INFOGRAFIK

Group

platform.

Types ofproduction platforms

Main platform with a riser

The riser is a pipe that connects the platform production facility with the export pipeline on the seabed.

Production platformThe F16-A is a typical production platform, where natural gas is processed on the production platform and compressed for further transport via the export pipeline.

MonumentThe Statue of Liberty in New York is only slightly higher than the visible part of the F16-A.

Satellite platformA normally unmanned platform is used to produce gas from adjacent reservoirs via the main production platform.

WI-Poster_Plattform_EN_10hh.indd 1 08.03.12 10:33










Safety offshore.


Onthewaytohelideck

“ ALTHOUGH THERE IS LIMITED SPACE ON PLATFORMS, ALMOST 70 PERCENT OF THE SYSTEMS FOR PRO-TECTING THE ENVIRON-MENT, PEOPLE AND THE FACILITIES ARE INSTALLED THERE.”

Henk-Jan ter Stege, Maintenance Superintendent.

32 | 33 HSE ANNUAL REPORT 2011 PROCESS SAFETY | ONSHORE

A few years ago Wintershall developed a four-step review system

for health, safety and environmental protection (HSE) applicable to

all new onshore facilities. The HSE reviews are not required by law;

instead, the company has made a voluntary commitment to the

comprehen sive and standardized procedures. The aim is to identify

and avoid or minimize any possible hazards before commencing

with the construction and operation of a facility. The safety assess-

ments are generally conducted using an interdisciplinary approach

and facilitated by an HSE expert.

To begin with, in steps 1 and 2, the potential hazards of a facility are

assessed, and a safety and environment concept is drawn up. This

concept covers for example safety measures and fi re prevention

plans or gas dispersion and thermal radiation calculations. But it

also clarifi es logistical issues, interaction with the surroundings, for

instance possible emissions, as well as the ergonomic design of

future work places on the facility.

In step 3 the planning documents and concepts are closely inspect-

ed and elaborated: the aim is not only to ensure that the facility is

safe when it commences operations, but also should be able to

operate with minimal downtime. Hence, the safety equipment is

designed in such a way that it only intervenes in regular operations

in the case of emergen cy. Finally, step 4 consists of the internal

approval of the facility upon com pletion by all those involved in the

planning and construction. The facility is also certifi ed by an inde-

pendent expert. Hence, a facility does not begin operations until

the safety documents are com plete and the plant manager has

signed the acceptance protocol.

Wintershall applies this four-step review system to all its planned

new facilities. In exceptional cases there is even an extra prelimi-

nary phase, step 0, in regions where the company is operating for

the fi rst time. In this step any possible basic risks have to be clari-

fi ed. As well as geological conditions, this can cover infrastructure

problems and the political situation in the target region.

In order to bring older facilities in line with latest safety standards,

Wintershall has also begun expanding the model to existing facili-

ties. All the facilities selected worldwide are to undergo an HSE review

according to step 2 by the end of 2012. A follow-up review is planned

after fi ve years, with regular reviews every ten years thereafter.

Safety Onshore.

Wintershall operates plants and facilities worldwide

for production and transport of crude oil and natural

gas. The conditions onshore are different to the

conditions offshore. The drilling rigs, pipelines,

compressors or storage facilities are often located

in close vicinity to inhabited areas and many of the

installations are underground. Yet the need to protect

people and the environment is the same as offshore:

the facilities comply with the highest safety standards

and use state-of-the-art technology.

ON SHO RESAFETY.

STATE-OF-THE-ART TECHNOLOGY.

34 | 35 HSE ANNUAL REPORT 2011 PROCESS SAFETY | ONSHORE

Gas stationGas station

SubstationSubstation

Brine systemBrine systemWater withdrawalfacilityWater withdrawalfacility

Salt dome

Cavern

Water pipeline(underground)Water pipeline(underground)

80m

Existing MIDALpipeline (underground)

Existing MIDALpipeline (underground)

Assembly point for cavern drilling (up to four assembly points are planned)

Assembly point for cavern drilling (up to four assembly points are planned)

Ems

Ems dyke

400m

One of Germany's biggest cavern gas storage facilities is to be built in Jemgum. A technically challenging project, in which has to be drilled to a depth of around one and a half ki-lometers. Later, only a few inconspi-cuous installations will remain on the surface. Water

Blanket

Brine

Cementation

Ems(Jemgum)Aussenems

(Rysum)

2

3

4 5

Safety gap

Directionaldrilling

1

Connection to the MIDAL pipeline(underground)

Connection to the MIDAL pipeline(underground)

TRANSPORTThe natural gas to be stored in the cavern is pumped to the storage facility via the transport pipeline network.

1

COMPRESSIONWith compressors, the natu-ral gas is brought to a pres-sure of up to 220 bar and pressed into the cavern.

2

INJECTION / WITHDRAWALThe pressure in the cavern pres-ses the natural gas past the well head, through which it was injec-ted into the cavern. Up to 100,000 cubic meters of natural gas can be withdrawn per hour.

3 DRYINGIn the cavern, the natural gas absorbs water vapor through its contact with the remaining brine. Hence, it has to be dried so that no condensation forms in the pipelines.

4 5 PREHEATINGFor withdrawal, the pressure of the natural gas in the ca-vern is adjusted to the pres-sure in the pipelines. This causes the natural gas to cool down so much, that it must be pre-heated.

CONSTRUCTINGA CAVERN

1 When a suitable site for a cavern has been found, a deep well is drilled to a depth of up to 1,600 meters.

3 When the cavern reaches its planned vo-lume, natural gas is in-jected into the cavern.

2 This is followed by the so-called "solution mi-ning process": for this purpose, pipes are fed into the well, water is pumped into the salt dome through these pipes and the brine is pumped out of the well.

SALT DOMEThe petro-physical properties of salt guarantee that the rock salt

caverns are sealed naturally. This is why they are especially suitable for storing natural gas.

Source: WINGAS. Schematic presentation

WINGAS GROUP NATURAL GAS STORAGE FACILITIES

RehdenRehden

HaidachHaidach

Saltfleetby

Zeebrügge

Rysum Greifswald

Aachen

Balgzand

BactonSaltfleetby

ZeebrüggeZeebrüggeZeebrügge

RysumRysumRysum Greifswald

AachenAachenAachen

Balgzand

Bacton

KasselKassel LeipzigLeipzigDresdenDresden

NürnbergNürnbergStuttgartStuttgart

HamelnHameln

HamburgHamburg

BremenBremen

KielKiel

FrankfurtFrankfurtKölnKöln

MünchenMünchen

BerlinBerlinNELRHG

MID

AL

MIDAL

JAGAL

OPA

L

WEDAL JAMAL

BBL

INTER- CONNECTOR

WAG

TRANSGAS

NORDSTREAM

GB

Jemgum

CUSHION GASIn addition to the utilizable working gas, every natural gas storage facility also contains so-called "cushion gas", which cannot be extracted. The cushion gas gua-rantees the minimum pressure required for optimal injection and withdrawal. In cavern storage facilities, this amounts to about one third of the maximum storage volume.

The caverns will each have a geometric volume of up to 750,000 cubic meters. To put this into per-spective: that is about twice the height of Cologne Cathedral. It is planned to build up to 18 caverns.

2/3 working gas

1/3 cushion gas

DIMENSIONS

Pipeline networkPipeline in planning/construction phaseTransit pipelineWINGAS Group natural gas storage facilityWINGAS Group natural gas storage facility in planning/construction phase

Pipeline networkPipeline in planning/construction phaseTransit pipelineWINGAS Group natural gas storage facilityWINGAS Group natural gas storage facility in planning/construction phase

NATURAL GAS STORAGE FACILITY IN A SALT DOME

Wintershall takes the safety of its facilities, as well as health and

environment protection, very seriously even before regular opera-

tions begin. One example of this is the construction of the natural gas

storage facility in Jemgum, Lower Saxony. Wintershall and WINGAS

are taking special precautions at this facility to minimize the impact

on the natural environment and the landscape, and, of course, the

residents. Hence, the solution mining of the storage caverns, i.e.

rinsing out hollow spaces in the subterranean salt dome, is being

completed in such a way as that protects the neighboring Ems River.

A 42-kilometer-long transport pipeline was built to transfer the salty

water directly to the North Sea, which is by its nature a salt water

body. A soundproof wall and reduced-noise machines make sure

that neighboring residential areas and bird protection areas are af-

fected as little as possible during the construction phase. Lighting

planning for the exterior facilities serves the same purpose. The

beam angle, light color and temperature of the lighting are adapted

to the needs of the surrounding area. There is also an ecological

monitoring process accompanying the entire construction period.

This ensures that the construction work only takes place during

environmentally compatible time windows, for example outside

breeding seasons of birds.

“ THE HSE REVIEWS ARE VOLUNTARY COMMITMENTS. THE SAFETY STANDARDS GO FAR BEYOND THE LEGALLY REQUIRED LAWS AND DIRECTIVES.” Marco Lukassen,

HSE Engineer

The Jemgum natural gas storage facility.

36 | 37 HSE ANNUAL REPORT 2011 ENVIRONMENTAL PROTECTION

Wintershall Group is committed to the responsible use of natural

resour ces in the exploration, fi eld development, production and trans-

port of hydrocarbons. We face the challenges by acting responsibly,

applying high standards and driving technical innovation. Environmental

protection is in our own fi nancial interests. Therefore, the preservation

of natural resources, the prevention of emissions and waste are integral

parts of the exploration and production process. A key factor to our

success is effi cient use of the resources required to fi nd and produce

reserves with new or improved methods and therefore to minimize

the impact on the environment.

ENVIRONMENTAL PROTECTION.

Energy effi cient and resource conserving.

FOR SAFEFUTURE.

38 | 39 HSE ANNUAL REPORT 2011 ENVIRONMENTAL PROTECTION

As a wholly-owned subsidiary of BASF SE, Wintershall is commit-

ted to the Responsible Care Initiative. In accordance with BASF’s

Responsible Care Reporting Guidelines, environmental emissions

relating to the production of crude oil and natural gas are reported

as a ratio of Wintershall’s participating interest in the consortium in

question. As a member of the International Association of Oil & Gas

Producers (OGP), Wintershall reports its environmental emissions

in exploration and production as part of the OGP’s “Environmental

Performance in the E&P Industry” report.

Water.

Production and waste water is generated in the exploration and pro-

duction of crude oil and natural gas. We try to recycle as much water

as we can by using innovative technologies and closed systems.

A total of 10.7 million cubic meters of water were used in 2011

(2010: 9.5 million m3), most of which – 9.5 million m3 (2010: 8.5

million m3) was accounted for by production (reservoir water). Some

5.5 million m3 of production water were re-injected into the reser-

voirs after being separated from the crude oil and natural gas at the

surface and cleaned.

A total of 4 million m3 production water from our offshore platforms

was discharged into the sea after being cleaned in compliance with

the statutory threshold limits.

Around 798,175 m3 of other types of waste water were also gener-

ated. Examples are the waste water generated by the construction

and operation of cavern storage facilities (solution mining) or during

cleaning operations and water treatment. 517,760 m3 of waste water

in total were sent to external waste water treatment systems.

There were also 427,730 m3 of sanitary waste water. Sanitary waste

water is also cleaned and disposed of in line with regulations at

locations where Wintershall is not connected to the public sewer-

age system.

Key performance indicators environmental protection 2011.

Environmental protection.

We were able to reduce the emissions of greenhouse gases with

numerous projects aimed at improving energy effi ciency. For ex-

ample, today Wintershall Erdölwerke supply the operations in

Germany with energy it generates itself, and does so by using a

combined heat and power (CHP) plant. This plant uses gas,

which previously could not be used cost-effectively, to generate

electricity and steam. The application of this new technology re-

duces the annual CO2 emissions by 25,000 tons. At the Emli-

chheim operations Wintershall also uses steam fl ooding to en-

hance its oil production. Thanks to the use of tempered and

desalinated production water as boiler feed water, fuel consump-

tion and the specifi c greenhouse gas emissions are reduced. The

exhaust heat from the three existing gas turbines at the Mallnow

natural gas compressor station of the WINGAS Group near Frank-

furt (Oder) is used to power a steam turbine.

In addition, Wintershall is participating in research projects to in-

vestigate the storage and processing possibilities for CO2. The

WINGAS Group also strongly supports efforts to implement the

change in energy policy in Germany and in particular examines

the possibilities of trading, storing and transporting the gas har-

nessed from renewable energies, known as “power to gas”.

Reservoir wateris a mixture of water, salt, hydrocarbons and other materials which

occur naturally in the reservoir alongside oil and gas. Reservoir water

is produced together with the oil and gas.

Energy.

We use electrical energy to produce, process and transport crude

oil and natural gas, for example to drive pumps and compressors,

as well as thermal energy in the form of steam to produce oil. De-

pending on the location of our production sites relative to the supply

networks, we obtain electricity from the public grid or produce it our-

selves at remote locations. In 2011 we used a total of 878,831 MWhel

in electrical energy and 384,082 tons of steam for our production

processes.

The use and generation of energy are subject to continuous improve-

ment regarding effi cient energy use. Examples are the commission-

ing of a highly effi cient combined heat and power generation (CHP)

plant at our Emlichheim location in Germany and installation of a

system to enable use of exhaust heat at a gas turbine generator

plant in Nakhla in Libya.

Waste.

Waste can be generated during the exploration and production of

crude oil and natural gas as a result of the production processes.

We try to avoid such waste wherever possible. Unavoidable waste

is recycled and disposed of according to regulations. The amount of

waste and its environmental impact during recycling and the disposal

process can be signifi cantly infl uenced by the company generating

the waste. Wintershall also disposes of waste in due form and in an

environmentally friendly way, in regions where there is a lack of public

or private means of disposal.

Waste is classifi ed, stored, handled, transported and disposed of in

accordance with the applicable legislation of the country in question.

For this Wintershall adheres to international and internal company

standards. Waste is classifi ed into the categories “hazardous waste”

and “non-hazardous waste” according to EU regulations.

In 2011 Wintershall incurred 80,436 tons of waste (2010: 61,268).

49,987 tons were hazardous waste (2010: 29,505) and 30,449

tons non-hazardous waste (2010: 31,763). Around 20.4% of the

waste was recycled or energetically recovered. Approximately 1.8%

was disposed of in waste incinerators and 77.8% landfi lled in line

with regulations.

Most of the waste, especially in Germany, accrued due to measures

of land cultivation, renaturation, completion of drilling sites, reorgani-

zation of production sites, extensive drilling and construction activities.

RETREAT,CULTIVATION,RENATURATION.

40 | 41 HSE ANNUAL REPORT 2011 ENVIRONMENTAL PROTECTION | EMISSIONS

Reducing emissions.

The international community has set out ambitious goals in order to

stop climate change. As laid down in the Kyoto Protocol, global

greenhouse gas emissions are to be cut by at least fi ve percent

compared to their 1990 levels between 2008 and 2012. The Euro-

pean Union has committed itself to a reduction of at least eight

percent in the same timeframe. In December 2008, the EU also

agreed on a package of directives and targets for climate protec-

tion and energy, under which primary energy consumption and

greenhouse gas emissions are to be cut by 20 percent compared

to 2005 by the year 2020. This comprises expanding renewable

energies and increasing energy effi ciency by 20 percent.

In the exploration, production and transportation of crude oil and

gas emissions arise as a result of the energy required for these

activities – energy must be generated or imported in the form of

electricity, process heat, steam and pressure. Since the production

facilities are often located in poorly developed regions, energy must

be generated on site, normally using fossil sources, such as gas,

heating oil or diesel. These emit a number of substances into the air

during the thermal conversion. Other processes where substances

are emitted into the air are the discontinuous fl aring of associated

gas or condensate during production for safety reasons or as part

of maintenance measures.

As Germany’s largest producer of crude oil and natural gas and a

company that operates worldwide, Wintershall accepts its respon-

sibility to protect the global climate. Apart from complying with inter-

national conventions, local laws and our own standards, we help

cut emissions by using leading-edge technologies and new or im-

proved methods to increase energy effi ciency, thus minimizing the

impact on the environment, reducing energy consumption and also

keeping costs as low as possible.

Infl uencing factors.

Greenhouse gas emissions associated with production of crude oil

and natural gas fl uctuate for a number of production-related reasons.

Projects, such as development of new fi elds, testing of wells, construc-

tion of pipeline links or scheduled plant shutdowns for maintenance

or repair work, as well as safety reasons may infl uence their volume.

Emissions.

42 | 43 HSE ANNUAL REPORT 2011 ENVIRONMENTAL PROTECTION I EMISSIONS

Emissions in 2010 (t) Emissions in 2011 (t)

SOURCE OF CO2 EMISSIONS

Production processes 828,579 945,808

Indirect (import/export of electricity/steam) 79,715 98,673

Direct (electricity and steam production) 465,135 298,975

SOURCE OF CH4 EMISSIONS

Production, undifferentiated 3,318 4,057

INORGANIC SUBSTANCES

Total inorganic substances 2,965 2,808

Carbon monoxide (CO) 1,033 1,277

Nitrogen oxides (NOx) as NO2 1,678 1,311

Sulfur oxides (SO2+SO3) as SO2 254 217

ORGANIC SUBSTANCES

Non-methane volatile organic compounds (NMVOC)

2,015 2,347

OTHER SUBSTANCES

Particulate matter 30 26

Greenhouse gas emissions.

Emissions released into the air are regularly controlled and recorded

in accordance with statutory stipulations and our own standards.

Beside greenhouse gas emissions, we ascertain emissions of air

pollutants. They include inorganic gases such as carbon monoxide

(CO), nitrogen dioxide (as NO2) and sulfur dioxide (as SO2). Apart

from carbon dioxide (CO2), nitrous oxide (N2O) and methane (CH4),

no other greenhouse gases are emitted by Wintershall.

Wintershall was able to reduce greenhouse gas emissions in 2011

by 2.2 percent compared to 2010 values. Production operations at

the Wintershall Group accounted for total emissions of 1.34 million

tons of CO2 in 2011 (2010: 1.37 million t CO2) and 4,057 tons of

CH4 (2010: 3,318 t CH4) in 2011. Relative to Wintershall’s produc-

tion of crude oil, natural gas and condensate, the specifi c emission

is 0.08 tons of CO2/toe (2010: 0.08 t CO2/toe).

The reduction in greenhouse gas emissions is mainly attributable to

the temporary shutdown of the production facilities in the desert in

Libya owing to the political uprisings in the North African country.

CO2 Emission trading scheme in Europe.

Emission trading was introduced in the European Union as part of

the implementation of the Kyoto Protocol as of January 1, 2005. The

goal of this system is to reduce CO2 emissions where it is most

cost-effective to do so. Participants on the market are facilities that

produce emis sions and have an output of more than 20 megawatts

capacity, energy-intensive industries and – as of 2012 – aviation.

The second period of emission trading in the European Union com-

menced on January 1, 2008, and will last until 2012. The companies

involved are currently preparing for the 3rd trading period which will

last from 2013 to 2020, and major changes are envisaged here. As

of 2013, the emission trading system will be extended to other sec-

tors and applied more strictly. In future, more emission rights will be

auctioned instead of being distributed free of charge as has been

the case so far. The share of free certifi cates will sink from 80 per-

cent per annum in 2013 to 30 percent by 2020. In addition, the total

quantity of available certifi cates will be reduced continuously by 21

percent overall.

Thirteen plants of the Wintershall Group are subject to the statutory

requirements for emission trading in the 2nd trading period from

2008 to 2012. They include two production platforms in the Nether-

lands alongside the facilities in Germany.

In 2011, the German Emission Trading Agency (DEHSt) and the

Dutch emission authority (NEa) allotted our plants 791,067 EU allow-

ances (EUA/a). Our European plants that are required to take part

in the emission trading system emitted a total of 458,035 tons of

CO2 in 2011.

For the fi rst time, allowances for the new OPAL natural gas transfer

station in Lubmin, and the new OPAL gas compressor station at

Radeland has to be applied for from the Emissions Trading Agency.

Wintershall is also currently preparing for the 3rd emission trading

period from 2013 to 2020. It is necessary to reapply for the EU allow-

ances for this period.

Emissions of other substances.

Some fossil fuels, such as natural gas, heating oil or diesel, which

emit various substances into the air during thermal conversion, are

used for power generation and production at our operating sites.

Emissions of inorganic substances were reduced by 157 tons to

2,808 in 2011. The reduction in greenhouse gas emissions is mainly

attributable to the temporary shutdown of the production facilities

in the desert in Libya owing to the political uprisings in the North

African country.

Key performance indicators 2011.

44 | 45 HSE ANNUAL REPORT 2011 ENVIRONMENTAL PROTECTION | ACTIVITIES

ENVIRONMENTAL PROTECTION WORLDWIDE:

OUR ACTIVITIES IN 2011.

Schizophyllan – Small fungus, big effect.

The production of crude oil and natural gas is no longer conceivable

without modern and highly-specialized technology. Many companies

are currently conducting research into developing and enhancing

tertiary oil production technologies. This research focuses on environ-

mental protection as well as economic and technological aspects.

Together with researchers and engineers from BASF, Wintershall is

developing a new process which can help to improve the oil recov-

ery rate from reserves in an environmentally friendly way. The best

methods often come from nature itself, and this time the answer

lies in a fungus – for one simple reason: when it consumes oxygen

and starch, schizophyllum commune – as the fungus is called –

generates a biopolymer, a 100% biological thickening agent. This

polymer can be used for oil production: the gelatin-like substance

thickens the water injected into the reservoir to enhance produc-

tion. The thickened water can force more oil out of the reservoir.

Furthermore, it does so in an environmentally friendly way, since the

biopolymer is fully biodegradable.

Schizophyllan is a real asset for crude oil production: the product

remains effective in high temperature ranges and high salt concen-

tration despite its biodegradability, and because it is kind to the

environment, this natural product can even be used in highly sensi-

tive ecological systems such as the sea. That is especially advanta-

geous in countries like Norway, which demand that all substances

used in offshore production are biologically biodegradable.

Following up on extensive research in recent years, the effect of the

biopolymer will now be tested over the next three years in the crude

oil fi eld Bockstedt.

From nature itself: the fungus schizophyllum commune.

The white cotton-wool-like structure produces the biopoly-

mer, which Wintershall hopes to use to produce more oil in

future. The brown fruiting body merely serves reproduction.

Schizophyllum commune, can be found in all forests on the earth on dead wood such

as fallen timber. It essentially feeds off oxygen and various

carbon sources, such as sugar, and generates the biopoly-

mer, which it needs for developing its own cell walls, amongst

other things, while it grows.


Wintershall set itself the goal to cease fl aring of associated gas dur-

ing routine operations by 2012. In Landau, the last production site,

where associated gas cannot fully utilized, the feasibility of different

technical solutions was tested. A micro gas turbine was assessed

at its oil production site in Aitingen for use at the company’s oil

operations at Landau. With the help of this turbine, gas is convert-

ed into electricity, which can then be used for production. This is an

effi cient use of energy and also environmentally friendly. Associated

gas had already been treated at Aitingen and fed into the gas net-

work. The technology generates 65 kilowatt hours of electrical

energy from 12.5 cubic meters of associated gas. The test was so

successful that the plant has now taken up normal operations. The

test provided useful data for other sites. Now it will be verifi ed, if a

micro gas turbine can be installed for crude oil production in Landau.

At the Barnstorf/Bockstedt site, Wintershall has installed a block-

type thermal power unit with two gas engines. This is fed with asso-

ciated gas and self-generated gas and achieves an electrical out-

put of 1.3 megawatts. A quarter of that is consumed in Barns torf and

the rest is transfered on to other locations. The power unit uses com-

bined heat and power technology and is therefore particularly effi -

cient. In addition to electricity, it supplies process heat and utility heat.

Wintershall Germany invests in energy-effi cient technologies.

Environmental Day 2011.

To mark the United Nations World Environmental Day, Wintershall

also launched a company-wide campaign to promote environmental

protection and increase ecological awareness. During the Environ-

mental Day 2011, the company provided information on its environ-

mental protection activities in an exhibition. International experts

gave an overview of the signifi cance of environmental protection for

the E&P industry in presentations on the challenges in producing

from uncon ventional gas deposits, environmental measures for the

construction of the Nord Stream pipeline, and the impact of the

Deepwater Horizon disaster in the Gulf of Mexico. In addition, many

company locations also joined in with their own initiatives.

At Wintershall Deutschland, staff learned more about energy saving

measures at home and they also received valuable tips on the effi -

cient and energy-saving modernization of buildings from an expert.

The Wintershall colleagues in Russia came up with an interesting

idea for the Environmental Day: the staff were given green plants for

their offi ces. They then planted these together in fl ower pots. In Nor-

way an event lasting the whole day was held on environment and

climate protection.

Sustainability, the environment and climate protection are becoming increasingly important factors in energy generation. They formed the backdrop to Germany’s decision to phase out nuclear energy. How-ever, one thing is certain: we cannot implement the turnaround in energy policy with renewable energies alone. The energy harvested from the sun, wind and other regenerative sources are subject to major fluctuations. Natural gas can offer the solution as a reliable and flexible partner on the path towards the energy mix of the fu-ture. The greenhouse gases and dust particles emitted during the combus tion of natural gas are at a significantly lower lever than on use of other fossil fuels – while efficiency remains high.

WINGAS aims to improve the environmental compatibility and effi-ciency of natural gas consumption even further. Hence, the Wintershall subsidiary does not just limit its activities to natural gas trading, but also continuously works on new technologies and products. To-gether with selected municipal suppliers, the company has con-ducted several field tests to test the use of micro combined heat and power systems. In 2011, WINGAS and the utility company Technische Werke Ludwigshafen agreed to conduct another field test with fuel cells. Cooperation agreements have also been made in the area of gas engines and steam expansion machines. All the technologies tested are innovative gas heating systems that pro-duce electricity as well as heat. They achieve efficiency rates of over 90 percent.

In 2011 WINGAS set up a multi-million investment program to pro-mote the use of combined heat and power. The program will run until 2020 and encourages municipal utility companies to set up small CHP units in their catchment areas, thus strengthening dis-tributed power generation. Program participants can choose be-tween a one-time investment grant or an operating grant.

WINGAS also offers CO2-neutral natural gas, so-called eco-gas. Eco-gas customers can offset their entire greenhouse gas emis-sions generated by the combustion of natural gas. WINGAS ac-quires certificates for CO2 savings from climate protection projects. The certificates are recognized and verified by independent bodies such as the UN climate secretariat in Bonn. The WINGAS eco-gas portfolio is complemented by biogas: biogas from renewable raw materials or from production residue is added to the natural gas stream, which further enhances the CO2 performance of natural gas.

WINGAS also takes part in the natural gas mobility initiative founded in 2011 together with vehicle manufacturers, other energy suppliers and German Energy Agency (dena). The initiative aims to raise the share of natural gas and bio methane on the fuel market and thus decrease CO2 emissions from road traffic.

Natural gas for the future.


“Unconventional natural gas deposits” can be described as depos-

its that are diffi cult to access, in which the natural gas has to be

mobilized by using special technologies before it can be extracted.

Furthermore, a distinction is made between the different types of un-

conventional deposits – based on where the gas is and how tightly

it is embedded. There are two main types of unconventional depos-

its in Germany: tight gas and shale gas deposits.

Production methods for unconventional reservoirs.

The media discussions on unconventional gas production often

mention “fracing” – short for “hydraulic fracturing”. This technology

is basically nothing new – over one million wells worldwide have

been completed using this method in the last sixty years – and it

has been developed constantly. The fracing method is not just used

to produce oil and gas, but also for water wells and in geothermal

energy. For 40 years now the technology has also been used

in other countries with very high environmental standards, such

as Norway.

The basic idea is simple: small artifi cial fractures are created in pre-

defi ned locations in the subterranean rock using water pressure.

This is where the term “hydraulic fracturing” originates. The cracks

are then fi lled with sand or other agents (so-called proppants) to

keep them open and create permeable channels through which the

gas can fl ow to the well and be extracted. The liquid mixture used

for hydraulic fracturing is made up of water and sand (to 99%) as

well as a very small quantity of so-called additives. These are chemi-

cal additives that ensure that the quartz sand mixes with the water,

for instance, so that the cracks generated for the gas to fl ow

through stay open long enough and to ensure no harmful microor-

ganisms reach the reservoir. The actual composition of the mixture

depends on the characteristics of the reservoir concerned. How-

ever, the concentration of these additives in the fracturing fl uid is so

low that the fracturing solution is not subject to specifi c labeling

requirements according to the legislation on chemicals and is clas-

sifi ed in water hazard category 1 (slightly hazardous to water).

That being said, the fewer additives are used, and the more environ-

mentally friendly they are, the better. For that reason Wintershall

supports the development of environmentally friendly fracturing solu-

tions with an even lower number of chemical components.

Additives in frac liquids.

Unconventionals – Hydrocarbons

from diffi cult to access deposits.

Oil or gas deposits trapped in extremely impermeable reservoir rock are

known as “Unconventionals”. Special techniques are required to extract oil

or gas from unconventional deposits.

additive function in frac liquidcomponent in everyday products

salt clay stabilizerpotash fertilizer, soap production

biocide preservative agent disinfectant, preservative agent in cosmetics

friction reducer

reduces friction between frac liquid and casing

make-up remover

gelling agent increases viscosity of frac liquid to make transport of propping agent possible

thickening agent in food

cross linking agent

maintains viscosity of frac liquid in reservoirs

laundry detergent, preservative agent in food, oral hygiene

moistening agent

improves back production of treatment liquid

soap, disinfectant

gel breakerreduces viscosity of frac liquid after placing of propping agent

soap, cosmetics and disinfectants

Production of Tight gas.

The production of unconventional natural gas has been part of our

energy supply for a long time. The technology for producing this

gas has been in use worldwide for 50 years. The extraction of tight

gas in Germany is also a proven technique. Wintershall itself has

been producing natural gas from unconventional reserves for many

years – in the Netherlands, Russia, Argentina and Germany, where

Wintershall has participated in a total of 117 production operations

for tight gas since 1978.

Exploration of Shale gas deposits.

The production process for shale gas, however, is much more com-

plex than for tight gas. More procedures are necessary to create

the channels for the gas to fl ow through (so-called “fractures”), and

a much higher volume of fl uids is required than with the production

from “tight gas” deposits. Wintershall is conducting a three-year re-

search project in the concessions “Rhineland” and “Ruhr” in North-

Rhine Westphalia together with the University of Cologne. What is

important to note here: there will be no deep drilling or fracing oper-

ations whatsoever as part of this project; just shallow wells to obtain

rock samples and scientifi c investigations on the geological features.

Conventional deposits.

Interconnected pores give the rock

its permeability.

Tight Gas is natural gas that has gathered in small, poorly

connected cavities between the rock particles (mostly sand-

stone). Because this rock is not very permeable the natural

gas cannot fl ow freely to the well.

With shale gas the gas has remained in the rock where it

formed, the source rock, and has not migrated to more per-

meable rock. The gas here is largely trapped at the surfaces

of the rock particles.

Unconventional reservoirs.

Mineral grain

Pores

HEALTH PROTECTION.

50 | 51 HSE ANNUAL REPORT 2011 HEALTH PROTECTION

The aim of occupational health protection activities

at Wintershall is to prevent work-related illnesses or

impairment to employees’ health, as well as maintain

a high level of overall health within the workforce.

Wintershall’s focus is on preventative health measures,

health promotion and ensuring effective medical care

in the event of emergencies.

PREVENTION AND HEALTH PROMOTION.

FIT +HEALTHY.

52 | 53 HSE ANNUAL REPORT 2011 HEALTH PROTECTION

As in the previous year, no Wintershall employee was diagnosed

with an occupational illnesses in 2011. Together with HSE experts,

company physicians at the individual locations and business units

analyze working areas in order to minimize the hazards to employees’

health in their activities. The working conditions in explo ration and

production, as well as administration, are of a very high standard.

Overall, 52 plant and workplace inspections were conducted and

documented. These were complemented by numerous workplace

walkabouts conducted by managers and HSE experts according to

the requirements of the HSE Management System. In 2011, 707

medical examinations relating to prevention or early screening for

work-related illnesses and to prepare staff for work-related stays

abroad were conducted worldwide.

A trained fi rst aider can save lives. To ensure that fi rst aid can be

administered in the case of a medical emergency, there are 582 fi rst

aiders and paramedics at the Wintershall Group’s locations who

hold a nationally recognized certifi cate in fi rst aid. Wintershall actively

supports its employees who wish to take part in fi rst-aid trainings.

Donating blood can also save lives. Blood donation opportunities are

organized regularly at the headquarters in Kassel. Blood was donat-

ed more than 100 times in 2011.

The issue of health protection in exploration and production in remote

regions and under extreme climatic conditions requires special at-

tention. There often is a lack of medical care or the local medical

infrastructure does not meet international standards. In such cases,

special preventive measures are designed very carefully to avoid

potential health risks to employees and contractors as far as pos-

sible. These measures are complemented by preventative and fol-

low-up medical check-ups.

As an international company, Wintershall also endeavors to fully

prepare its employees for journeys and assignments abroad and to

avoid unnecessary risks. Travel advice, vaccination recommenda-

tions and information on countries where Wintershall operates are

regularly compiled and updated. A special HSE checklist was devel-

oped to prepare employees for trips abroad. The package is round-

ed off with risk assessments, special procedural instructions and

emergency cards for each location.

Key performance indicators occupational health 2011.

52

plant and workplace

inspections

707

medical examinations

582trained fi rst aiders and

paramedics available

for call-out

The annual health campaign at Wintershall directed attention

to skin protection and skin cancer prevention. On this occa-

sion, the sites in Germany, Argentina, Qatar, Russia, Norway

and the WINGAS Group organized various activities and serv-

ices commencing in August.

In presentations and in the intranet, the employees were en-

couraged to learn more about how to protect their skin from

adverse effects. For departments whose employees use sub-

stances causing skin irritation, risk assessments were per-

formed and skin protection plans were drawn up or adapted.

Worldwide, our employees had the opportunity to register for

a free of charge skin cancer screening. During the examination,

a dermatologist had a close look at all parts of the skin. Birth

marks in particular were examined with regard to their poten-

tial risk for skin cancer. Through a skin cancer screening, it is

possible to identify preliminary and early stages of cancer.

Worldwide, about 400 employees made use of the medical

examination.

healthyskin@work

HEALTH PROTECTION WORLDWIDE:

OUR ACTIVITIES 2011.

54 | 55 HSE ANNUAL REPORT 2011 CORPORATE SOCIAL RESPONSIBILITY

CORPORATE SOCIAL RESPONSIBILITY.

As Wintershall we see cultural differences as something enriching.

We have seen that our shared values outweigh our differences.

This is why Wintershall’s international operations not only produce

crude oil and natural gas, but also closer contacts between people.

Sponsoring cultural and social projects is not a luxury for Wintershall,

but an expression of its social commitment and active steps to

enhance the quality of life.

As a subsidiary of BASF, the Wintershall Group is committed to its

responsibility to observe and promote human rights. We respect the

internationally proclaimed human rights and effective law in our busi-

ness activities.

As a company in the BASF Group, a founding member of the UN

Global Compact, we strive to help raise awareness and protect human

rights in our sphere of infl uence. For this reason we also support our

suppliers and business partners in acting according to internationally

recognized standards.

We aim to be an attractive employer, reliable partner and good neigh-

bor. That is why we take on social responsibility and actively support

diverse projects worldwide in the host communities where our sites

are located. Our focus is on education and science. With our social

commitment we want help to bring positive developments in society

and thus help to promote human rights.

Human rights.


Our employees are our capital and our most important resource.

Each and every employee contributes to the success and develop-

ment of the company. Our principles include creating the best pos-

sible working conditions for our staff as well as opportunities for

personal development.

The Wintershall Group offers extensive training and further training

programs alongside with “on the job training” for qualifi ed university

graduates and a Work & Life Service to help employees balance

their professional and family lives. We play a pioneering role in this

fi eld. The Work & Life Service is a place employees can go to for

support in reconciling the needs of the job and their personal lives.

Flexible working hours, company sports and health measures,

household-related services, parental leave, ensuring an easy return

to work, as well as child care and school support are the main ways

we support our staff.

An important part of our Work & Life Balance services is the KiWi

daycare center for children set up in 2001 in Kassel. This daycare

facility offers our German and international staff a place where their

children, between 6 months and 10 years, will be looked after by

professional and dedicated staff. There are over 60 places available.

Thanks to fl exible daycare offers, shared places, homework super-

vision and a play area suitable for all age groups, over the years

KiWi has become like a second home. Wintershall has grown con-

tinuously over the years and so too has the demand for childcare

facilities. In 2011 construction began on a second daycare center

(WiKi) with 70 – 80 places. WiKi is scheduled to open its doors to

its young guests in 2012.

Wintershall does everything it can to ensure the best possible work-

ing atmosphere at its various locations. By supporting our staff with

various needs, Wintershall offers all staff a service-oriented working

environment. For this reason, since 2003 it has been awarded the

certifi cate “audit berufundfamilie” from the non-profi t HERTIE foun-

dation. It goes without saying that Wintershall also looks after its

staff at its international operations, and respects cultural diversity.

Our employees.

WORK & LIFE


Wintershall has been active in the exploration and production of

crude oil in Libya since 1958. For us, social commitment has been

an integral part of these activities from the very beginning. For exam-

ple, Wintershall initiated an integration and development program,

and thereby achieved a considerable increase in the number of

skilled workers from the local area. The company helped to build a

school and renovate a pre-school in Jakhira. The company also sup-

ports regional festivals, public institutions and events for staff and

the local population. When in 2004 the mosque on the grounds of

Wintershall Libya became too small, because of the large number

of local staff, Wintershall had a new and larger mosque built.

Since the uprising began in Libya, Wintershall has been active in

ensuring the welfare of its employees and their families. But that’s

not all: during the unrest in 2011 the company supported the Red

Crescent, the Red Cross and the largest international indepen -

dent children’s aid organization “Save the Children” in supplying

emergency aid. As well as fi nancial support, Wintershall donated

containers with more than four tons of medicines such as antibi-

otics and painkillers, surgical instruments for operations as well as

sterile equipment. With these supplies more than 20,000 people

could receive medical care for three months. The supplies were

prepared according to the guidelines of the World Health Organiza-

tion for use in catastrophes and emergencies. Despite these meas-

ures, the company wishes to send a further sign of the company’s

commitment. Hence, Wintershall is also supporting the medical

treatment of up to 30 Libyan victims in Germany seriously injured in

the confl ict.

2011 focused on: Humanitarian aid in Libya.

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tons of medicines, surgical

instruments for operations as well

as sterile equipment donated

20.000

people can receive medical

care for three months with

the relief supplies.

30Libyan victims seriously injured

have been treated in Germany.

The Maria reservoir is one of the largest oil discoveries in Norway in

recent years and is situated around 200 kilometers off the coast of

Trondheim. As operator of the deposit, Wintershall is pressing ahead

with the fi eld’s development. Maria is estimated to have from 60 to

120 million barrels of recoverable oil and 2 to 5 billion standard cubic

meters (sm3) of recoverable gas.

In order to transport the oil produced, Wintershall is examining the

possibility of using a Floating Production Storage and Offl oading

Unit (FPSO). This type of ship is designed especially for offshore pro-

duction, can be used for the production, storage and loading of

hydrocarbons instead of a swimming platform, and is very fl exible.

The crude oil is pumped directly from the borehole to the ship via

an underwater riser and separated from the gas and water pro-

duced with it. The oil is also stored on the ship until it is transported

by crude oil tankers.

The use of a production and storage vessel for the Maria fi eld is

currently undergoing a detailed safety analysis (HAZID = Hazard

Identifi cation). In this process, which is conducted within Wintershall

as standard procedure, the possible hazards are identifi ed. This

analysis also includes factors such as infrastructure, the weather

conditions and geotechnical data. The ship is then custom-built

according to the consortium’s requirements.

At the beginning of 2012 the company started drilling an additional

well in the Maria reservoir in the Norwegian Sea to determine an

effective fi eld development concept. The conclusions will aid the

Maria consortium in the decision on the best possible fi eld develop-

ment concept.

Wintershall’s parent group BASF has developed new guidelines on

environmental protection and has laid these down in a group direc-

tive. This directive contains mandatory requirements for all the

group companies in the area of air, noise, water protection, waste

and contaminated sites, requirements which go far beyond the legal

requirements and which apply to all production sites worldwide. In

2012 we will implement these requirements according to the needs

of the E&P industry and integrate them fully into all our operations

by 2015. Our aim is to avoid or minimize any impact on the environ-

ment. Examples of the measures we are going to take include the

introduction of an emissions and waste register, also in countries

where this is not mandatory, reference values for emissions and

risk-based water protection concepts.

New BASF Group Directive Environmental Protection.

60 | 61 HSE ANNUAL REPORT 2011 NEWS

Development of the Maria fi eld.

NEWS.WHAT IS ABOUT TO HAPPEN.

The environment will be a key theme in 2012 too: The Environmental

Day on 5 June 2012 will focus on environmental protection in natural

gas transport and trading in a series of events. Internal and external

experts will discuss what contribution natural gas can make to en-

vironmental protection as a partner of the renewables as we move

towards the energy mix of the future.

Noise control is the subject of Wintershall’s health campaign for

2012. Since hearing damage and loss of ability to hear due to noise

are among the most frequently aknowledged occupational illnesses,

and since they have a serious impact on the quality of life of those

affected, the campaign informs employees of the risks and provides

valuable prevention tips. The aim of the campaign is to raise aware-

ness towards this subject and identify any impairment or health

problems that already exist as early as possible.

Health Campaign 2012.

Wintershall is looking for more ideas for improvement in 2012:

employees of Wintershall and WINGAS can submit their pro-

jects for the HSE Award. Innovative solutions for the improve-

ment of health, safety and environment are rewarded with this

award. The company has been awarding the HSE Award

since 2007. In addition, in 2010 the company added a prize

for a “Simple Solution” – a small, intelligent invention. The aim

of the competition is to develop new ideas in the area of HSE.

HSE-Award 2012 –

Projects wanted.

Environmental Day 2012.

AWARDHSE

62 | 63 HSE ANNUAL REPORT 2011 KEY PERFORMANCE INDICATORS 2011

AT A GLANCE: KEY PERFORMANCE INDICATORS 2011.

Unit 2010 2011

WINTERSHALL PERFORMANCE

Sales to third parties mio. € 10,791 12,051

· Exploration & Production mio. € 3,819 3,182

· Natural Gas Trading mio. € 6,972 8,869

Profi t from operating companies (EBIT) mio. € 2,334 2,111

· Exploration & Production mio. € 1,918 1,686

· Natural Gas Trading mio. € 416 425

OCCUPATIONAL SAFETY

Number of employees* 2,164 2,281

Own employees

· Fatalities (FAT) 0 0

· Incident with > 1 day lost time (LTI) 0 0

· Lost time incident frequency rate per one million man hours (LTIF) 0 0

Contractors

· Fatalities (FAT) 3 0

· Incident with > 1 day lost time (LTI) 6 5

· Lost time incident frequency rate per one million man hours (LTIF) 1.01 0.75

LTIF total (own employees and contractos) 0.67 0.46

OCCUPATIONAL HEALTH

Occupational diseases own employees 0 0

First aiders Wintershall/WINGAS 557 582

Occupational medical check ups 501 707

ENVIRONMENTAL PROTECTION

Energy

· Energy consumption MWhel 977,742 878,831

· Steam use t 511,514 384,082

· Fuel use for own energy production mio. MWh 2.3 1.4

Greenhouse gas emissions

· CO2 mio. t 1.37 1.34

· CH4 t 3,318 4,057

Emission inorganic substances t 2,965 2,808

Emission trading Europe

· Received emission allowances EUA/a 792,274 791,067

· Emissions from facilities regulated under emission trading scheme t 466,420 458,035

Waste t 61,268 80,436

Water use (total) mio m3 9.5 10.7

· Production water mio m3 8.5 9.5

* Excluding temporary employees; part-time employees pro rata

64 | 65 HSE ANNUAL REPORT 2011 CONTACT PERSONS

CONTACT PERSONS.

Guido Schnieders

Corporate HSE Manager

+49 561 301–1757

[email protected]

Georgina Wien

HSE Manager

WINGAS TRANSPORT

& New Ventures

Malalay Osmani

HSE Engineer

Marco Lukassen

HSE Engineer

Nadja Brauhardt

HSE Communication

& Sustainability

Klaus Jantos

Senior Environmental

Advisor

Jörn Kahle

HSE Manager

WINGAS TRANSPORT

Corporate HSE Kassel.

Abu Dhabi

Louis Susanna

HSE Manager

Germany (WIDE)

Dr. Michael Bätcher

HSE Manager

Libyen (WILI)

Mustafa Abungasa

HSE Manager

Netherlands (WINZ)

Onno Spinder

HSE & Permitting Manager

Norway (WINO)

Janne Lea

HSEQ Manager

Russia (WIRF)

Evgenia Shvychkova

Junior HSE Specialist

Qatar (WIQA)

Axel Barenschee

HSE Manager

Locations worldwide.

66 | 67 HSE ANNUAL REPORT 2011

Imprint.

Responsible for the content

Wintershall Holding GmbH

Friedrich-Ebert-Str. 160

34119 Kassel

Conception and editorial work

Nadja Brauhardt

Design

atelier 41, Berlin

Information graphics

KircherBurkhardt GmbH, Berlin

Print

Ruksaldruck, Berlin

Wintershall Holding GmbHFriedrich-Ebert-Straße 16034119 Kassel, GermanyTel.: +49 561 301-1757Fax: +49 561 301-1702

[email protected] www.wintershall.com

wintershall hse annual report 2011

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