Annual Report 2008

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Corporate Social Responsibility Report

“The safety of employees continues to be a top prority for Dragon Oil.”

Our commitment

In 2008, Dragon Oil was involved in a number of community support projects in Turkmenistan.

Improving health care

In 2008, Dragon Oil commenced refurbishment of the Hazar Town’s ICU, which is expected to continue into 2009. In addition, there are plans to purchase medical equipment such as electro cardiograms and surgical instruments necessary for a fully working Intensive Care Unit. There are also plans to upgrade and refurbish other areas of the hospital in the future.

Providing clean water

Another major community project under way is a desalination plant in Hazar Town, which Dragon Oil is working on with the local authorities with a view to complete the project by the end of 2009. The Group has completed environmental surveys and an impact assessment. Having awarded the contract for this project, Dragon Oil has allocated a budget of US$4 million for the procurement, installation and commissioning of the plant. The plant will have a capacity to process 1,500 cubic metres per day of potable water, the major portion of which is expected to be supplied to Hazar Town where water supplies have historically been intermittent.

Supporting education

Dragon Oil recognises and understands the need to put in necessary programmes to improve the level of education for the communities in which it operates. There are plans and a budget in place to donate computer equipment to School Number Three in Hazar Town as part of Dragon Oil’s education improvement programme.

Health, Safety and Environment

Key Performance Indicators 2008 2007 2006 2005
Lost time incidents 4 2 8 6
Total hours worked (million) 4.2 4.1 3.2 2.8
Lost time incident frequency 1.79 2.02 2.48 2.45
Environmental incidents 0 1 0 0
School number three, Hazar Town
School number three, Hazar Town 
Hazar Town local woman
Hazar Town local woman 
Durdyev Orazdurdy, helping to refurbish Hazar Town's intenstive care unit
Durdyev Orazdurdy, helping to refurbish Hazar Town's intensive care unit 

The safety of employees continues to be a top priority for Dragon Oil and once again the Lost Time Incident Frequency Rate decreased, moving to 1.79 in 2008 from 2.02 in 2007. This improvement is primarily attributable to the HSE management system, a strengthened Health and Safety team and ongoing improvement of the training programme, facilities and processes.

Environmental protection is firmly on the corporate agenda, which is highlighted by Dragon Oil’s involvement in the Caspian Seal Conservation Project in 2008. This included providing transport of people and equipment, as well as general support to the Turkmenistan Ministry of Environment and nature conservation scientists. In 2009, the Group plans to become more involved in supporting and raising awareness of this important project.

Key CSR initiatives

  • Complete the desalination plant project in 2009
  • Increase and upgrade HSE training facilities and activities
  • Focus on improving contractor HSE training and overall performance
  • Introduce a ‘Centre of Excellence’ based in Dragon Oil’s facility in Turkmenistan
  • Improve environmental protection programme