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Message from the Managing Director and Health, Safety and Sustainability Committee Chair

Maintaining a stable operating environment is always a strategic priority for Oil Search. It remained so in 2016 and is likely to become a greater priority in 2017 as fundamental global shifts continue. Changing societal expectations, rising nationalism and technological disruption are driving significant political, economic and social change.

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2016 Report SOCIAL RESPONSIBILITY STRATEGY

In 2016, we reviewed and refreshed our Social Responsibility Strategy to ensure we continue to meet stakeholder expectations and the aspirations set by our Company vision.

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MAKING PNG LIVES BETTER

We aspire to set the standard for private sector contribution to sustainable development through our activities in PNG.

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PROUD OF WHAT WE DO AND HOW WE DO IT

We seek to adopt industry best practice when managing material social responsibility issues, exceeding stakeholder expectations for governance, environmental and social performance.

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ENGAGE AND EMPOWER OUR EMPLOYEES

We seek to provide a workplace that celebrates diversity and supports continual learning and development.

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2016 Report MAKING PNG LIVES BETTER

We aspire to set the standard for private sector contribution to sustainable development through our activities in PNG.

See the full report

2020 STRATEGY

Our Board approved our 2020 Social Responsibility Strategy and our Climate Change Strategy

US$ 284M TOTAL SOCIO-ECONOMIC CONTRIBUTION

consisting of total payments to PNG suppliers, PNG shareholders, the PNG Government, PNG employee expenses and our PNG sustainable development investment

SPENT US$ 32.2M ON INFRASTRUSTURE PROJECTS

managed on behalf of the PNG Government under the Infrastructure Tax Credit Scheme

PAID US$ 148M TO LOCAL PNG SUPPLIERS

43% of our total supplier contract expenditure in PNG

Nine students graduated from tertiary education institutions with support from Oil Search, including three women.

CONSTRUCTED 18KM OF ROAD

between Erave and Samberigi on behalf of the PNG Government under the Infrastructure Tax Credit Scheme

SPENT US$ 2.3M ON UPGRADES

to the Hela Provincial Hospital, coordinated by the Oil Search Foundation

we actively participated in the Extractive Industries Transparency Initiative (EITI) PNG Multi-Stakeholder Group, contributing data for PNG’s second EITI report, which is due in early 2017

2016 Report PROUD OF WHAT WE DO AND HOW WE DO IT

We seek to adopt industry best practice when managing material social responsibility issues, exceeding stakeholder expectations for governance, environmental and social performance wherever we can.

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20% REDUCTION

in our Total Recordable Injury Rate to 1.53 from 1.91 in 2015

14 HIGH POTENTIAL INCIDENTS

were recorded in 2016, compared to seven in 2015, due largely to an improved understanding of how these events are defined

31 INSTANCES

of safe working behaviour were recognised through our safety awards programme

Zero Tier 1 and two Tier 2 process safety events occurred, down from three and five respectively in 2015

We became a participant in the Voluntary Principles on Security and Human Rights

Zero significant spills occurred

50% REDUCTION

in emissions intensity from 93 ktCO2-e/mmboe in 2009 to 46 ktCO2-e/mmboe in 2016

3-5 cubic metres of compost per day generated from food waste was distributed for re-use internally or within host communities

99% OF OUR EMPLOYEES AND ON-SITE CONSULTANTS

have completed corruption prevention training

Human rights training materials were developed for personnel in high-risk roles, along with employee induction materials that will be rolled out in 2017

2016 Report ENGAGING AND EMPOWERING OUR PEOPLE

We seek to provide a workplace that celebrates diversity, supports learning and development and drives high performance.

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Five employees received an Oil Search Value and Behaviour Award

3 PNG CITIZENS

were appointed as Independent Members on Oil Search Board Committees

117 FRONTLINE SUPERVISORS

in PNG completed the first module of the Supervising Our Way programme

Two employee diversity and inclusion focus groups were held, attended by 31 staff

80 EMPLOYEES

attended unconscious bias training

PNG citizens made up 83% of our workforce and 23% of the senior management team in PNG

The Oil Search Code of Conduct was revised