Adnoc SR Main-Eng

ADNOC GROUP SUSTAINABILITY REPORT 2015
TAKING INNOVATION TO NEW HEIGHTS

Late Sheikh Zayed Bin Sultan Al Nahyan
(May Almighty Allah rest his soul in peace)
Founder of the United Arab Emirates
HH Sheikh Khalifa Bin HH Sheikh Mohammed

Zayed Al Nahyan Bin Zayed Al Nahyan
President of the United Arab Emirates Crown Prince of Abu Dhabi and
Deputy Supreme Commander
of the UAE Armed Forces
Cover photo
"The Falconer of Liwa" - courtesy of James Thomas

Ryan (ZADCO). The photo received the Special
Recognition Prize in the 2015 ADNOC Sustainability
Photo Contest
4 ADNOC Sustainability Report 2015 Taking Innovation to New Heights 5
contents
6
CEO Message
8
About ADNOC
16
How we operate
24
People
32
Environment
40
Society
48
ADNOC HSE AWARD
52
Acronyms and Abbreviations
54
External Assurance Statement
56
About our Reporting
57
Report Contributors
CEO Message
We are committed to
maximizing the value of
our oil and gas assets and
to remaining a trusted
and reliable global energy For over four decades, ADNOC Central to this is our continued advancing local talent; investing
supplier for the long-term has played a fundamental role pursuit of excellence in HSE. in the local supply chain, and
benefit of our country and in helping establish the UAE’s It is not only the right thing to creating critical infrastructure to
our customers. robust economic foundation do, but will be one of the key support our economy’s growth
and empowering sectors that success factors in achieving our and development.
We will do so by focusing are contributing to our country’s business objectives. Having our
on four strategic areas: ambitious socio-economic people return home safely at Working in synergy with our
enhancing the company’s development objectives. As we the end of every work day and group of companies and strategic
performance, increasing look ahead into the future, we enabling them to stay healthy are partners we are determined to
profitability, optimizing remain committed to creating fundamental to everything we identify opportunities where
efficiency, and investing in lasting and sustainable value for do. In addition, we are enhancing we can leverage the expertise,
our people. our people, our business and the skills of our employees and knowledge and insights of the
society. upgrading their capabilities so men and women who work
that they can achieve their full for ADNOC, to pioneer new
Our core mission is to be a potential. ways to address current and
responsible and reliable energy future challenges. By pushing
provider dedicated to maximising Protecting the natural our boundaries further than
the value of Abu Dhabi’s oil environment is an important ever before, we will ensure the
and gas resources, for the responsibility, and we will strive company’s long-term resilience
benefit of our country and our to protect the ecosystem across and sustain our competitive edge,
customers. To this end, we are our operations and throughout enabling us to deliver greater
focused on creating a more the life of our assets. We are value to our stakeholders and our
profitable upstream, a more proactive towards marine shareholders.
valuable downstream and a more development and have a portfolio
sustainable and economic gas of carbon sequestration and
supply, without compromising biodiversity enhancement
HSE or the integrity of our assets. projects. As we increase
production of oil and natural gas
It is our duty to ensure that to meet the growing energy
people have access to safe and demand, we will continue to
secure energy, both today and manage our own greenhouse
tomorrow, to enable continued gas emissions, and contribute to
economic prosperity. This role effective long-term solutions to
comes with many responsibilities address climate change risks.
- to our shareholders, neighbours,
customers and communities. As the national oil company of
Improving operational efficiencies Abu Dhabi, ADNOC has a wider
and optimising our assets are role in driving the creation of
central to ADNOC becoming long term, sustainable in-country
the most efficient, performance- value. We do this by developing
driven, and profitable business knowledge, through education Dr. Sultan Ahmed Al Jaber
that it can possibly be. and research; job creation and Chief Executive Officer
about adnoc
Highlights
• 20 diversified and integrated Abu Dhabi National Oil Company (ADNOC) was established
Group Companies
in 1971 under the UAE’s wise leadership. Today it is one of the
• >3.15 million barrels of world’s leading integrated oil and gas companies, with an oil
oil per day (bpd) ranking production of over 3.15 million barrels per day and an energy
ADNOC among the biggest infrastructure comprised of 20 specialist subsidiary and joint
oil and gas producers world venture companies known as ADNOC’s Group Companies.
wide
• 3 academic and training Thriving on a spirit of enterprise and a commitment to
centres providing a skilled safely and reliably deliver energy to our domestic and global
workforce to the UAE’s local consumers, our Group Companies’ operations encompass
oil and gas industry a portfolio of world-class projects and assets that cover all
• 4 research and innovation aspects of the hydrocarbon value chain, including crude oil
centers covering all aspects and natural gas exploration, production, refining, processing,
of ADNOC’s petroleum manufacture of petrochemicals and marketing.
value chain ADNOC’s headquarters are located in Abu Dhabi and so are our
major group-wide operations.
20 Group >3.15 Million BPD

Companies We are focussed on maintaining
ADNOC’s business model of our current level of production and
collaboration with international are committed to achieving our
oil majors across our group of 2018 production target, with due
companies has enriched our consideration of prevailing market
collective experience. Our long- conditions. ADNOC has always
standing relationships are true been an agile company capable of
partnerships that go back to the adjusting to the market and ensuring
birth of our company and have been that our supply is aligned with
part of ADNOC’s successful growth. projected demand.
3 ACADEMIC 4 Research
& TRAINING & INNOVATION
INSTITUTES CENTERS
Investing in education is one of ADNOC's world-class research and
ADNOC’s strategic priorities. We innovation ecosystem includes the
are very proud of our family of Petroleum Institute Research Centre,
educational institutes that were the Borouge Innovation Centre, the
established by ADNOC to nurture a TAKREER Research Centre, and
specialised, competitive and highly
ADNOC R&D Hub ( which oversees
professional young workforce for the
a portfolio of research project for
local oil and gas industry, and help
ADCO, ADGAS, ADMA, Al Hosn
create educated and engaged UAE
citizens. Gas, GASCO and ZADCO).
ADNOC Organisational Structure Vision, Mission, Values & Culture
Our Vision, Mission, Values and Culture were developed to build on ADNOC's history of success
and its continued role as an important cornerstone of the UAE economy.
They form the pillars of our new operating model, organizational structure and strategic
Chief Executive Officer imperatives.
Our company culture reflects who we are and our operating values define what we represent.
Legal & Compliance The Executive Office
Internal Audit Group Communications

ADNOC strives to be the energy that We are a performance-driven energy
powers the nation and drives company that champions
its engines of prosperity by innovation, invests in people
unlocking the full potential Vision and maximises the value of our
of our natural and human resources to meet the energy
resources needs of today and tomorow
Exploration, Finance & Refining & Business & Sales & Human Gas
Strategic Imperatives
Development Planning Petrochemicals Commercial Marketing Capital & Management
Culture
Mission
& Production Directorate Directorate Support Directorate Administration Directorate More profitable upstream
Directorate Directorate Directorate More valuable downstream
More gas supply
Developing world class
talent
Agile
Positive energy
Innovative
ADCO (82%) Borouge ADNATCO & NGSCO ADGAS (70%) Embrace teamwork Values
Abu Dhabi Onshore Petroleum Abu Dhabi Polymers Company Abu Dhabi National Tanker Abu Dhabi Gas Liquefaction
Efficient
Seek excellence
Company Ltd. Ltd. (60%) Company (100%) Company Ltd. Collaborative
ADMA-OPCO (60%) Borouge Pte. Ltd. (50%) National Gas Shipping Company Deliver results
Al Hosn Gas (60%) Value-driven
Abu Dhabi Marine Operating FERTIL (66.6%) (70%) Exceed expectations
Abu Dhabi Gas Development
Company Ruwais Fertilizer Industry Reliable
ADNOC DISTRIBUTION Company Ltd.
ZADCO (60%) TAKREER (100%) (100%)
ELIXIER (51%)
Zakum Development Company Abu Dhabi Oil Refining ESNAAD (100%) ADNOC Linde Industrial Gases
Company Petroleum Services Company Company Ltd.
NDC (100%)
National Drilling Company IRSHAD (100%) GASCO (68%)
Al Yasat Petroleum (60%) Abu Dhabi Petroleum Ports Abu Dhabi Gas Industries Ltd.
Al Yasat Petroleum Operations Operating Company
Company Ltd.
Al Dhafra Petroleum (60%)
ADOC*
Al Dhafra Petroleum Operations
Abu Dhabi Oil Company Ltd.
Company Ltd.
BUNDUQ*
Bunduq Company Ltd.
TOTAL ABK*
TOTAL Abu Al Bukhoosh
(%) ADNOC share of ownership in each Group Company

*
Independent Operators operate under ADNOC HSE Unit directions for HSE matters
ADNOC Group Companies
Onshore Offshore
ADCO GASCO AL HOSN GAS ADMA-OPCO ZADCO

NDC
• Operates 11 major onshore fields: • Operates 3 desert plants for gas • Operates the Shah Gas • Operates 2 offshore fields: • Operates 3 offshore fields:
processing and natural gas liquids Field: 287 km2 in size, • Provides onshore and offshore drilling
- Bu Hasa asset (Bu Hasa, Huwaila, - Umm Shaif: 500 km2, located - Upper Zakum (UZ): 1,269 services to the ADNOC Group Companies
(NGL) extraction: Asab, Bu Hasa, located 220 km southwest
Bid Al Qemzan), South East asset 150 km north-west of Abu km2, located 84 km north-
and Habshan / Bab complex (Bab of Abu Dhabi • 3,278,969 feet drilled in 2015
(Asab, Sahil, Shah, Quashwira), Condensate Dhabi west of Abu Dhabi
Associated has additional sour gas treatment
- North East Bab asset (Al Dabbiya, & • Complete facilities - Zakum: 1,270 km2, located 65 - Umm Al Dalkh (UA): 150 km2, • Operates:
and Non- facilities)
Rumaitha, Shanayel) and Bab Natural Gas operational in 2015, with km north-west of Abu Dhab. located 25 km north-west of
associated Abu Dhabi - 17 offshore jack-up drilling rigs
• Operates an NGL Fractionation Liquids a sour gas processing The Zakum field is the second
•2 export terminals: Jebel Dhanna Gas - 8 offshore island drilling rigs
Plant in Ruwais capacity of 1,000 million largest offshore field in the -S atah (ST): 35 km2, located
Terminal and Fujairah Terminal - 40 land drilling rigs
standard cubic feet per day Gulf and the fourth largest 200 km north of Abu Dhabi
• Operates a pipeline distribution - 11 water-well rigs (to survey the
• Current oil production capacity (MMSCFD) over the field’s field in the world. It contains
network to route natural gas to • Oil operation centres on: groundwater in Abu Dhabi)
of 1.64 million bpd with plans to lifetime five separate zones which
several industrial consumers - 1 multi-purpose service vessel
increase to 1.8 bpd by 2018 make up Lower Zakum and -Z irku Island: 8 km2, 140 km
• Overseeing several major Sulphur Upper Zakum. north-west of Abu Dhabi
Gas from Integrated
expansion projects, implementing Gas Development - Arzanah Island: 4 km2, 180
• 36 platforms
new gas processing facilities and (IGD) and Offshore km north-west of Abu Dhabi ADNATCO & NGSCO
revamping existing ones Associated Gas • 218 oil and gas well heads
Sulphur (OAG) Projects •M
ajor expansion project • Provides international marine
(some of which are shared
underway at Upper Zakum to transportation of LNG, petroleum
Crude Sales with ZADCO)
increase production to 750,000 products, bulk sulphur and polyethylene
Oil Gas
Fujairah Export • Three new fields are under bpd by 2017. This project
Terminal commissioning as part of (known as UZ750) includes • Operates a fleet of:
Ethane Condensate
& a strategy to increase oil the construction of 4 artificial - 8 LNG Carriers
Natural Gas Sales Network production by 300,000 bpd by islands (South, North, Central
Gas & - 9 Oil & Chemical Tankers
Liquids 2018: Umm Lulu, NASR and and West) from which long
Industrial - 7 Bulk Carriers
Consumers Satah Al Razboot (SARB) horizontal wells will be drilled - 2 Container Vessels
Ruwais - 1 LEG Carrier
Jebel Dhanna Terminal
Refined Products (Export) Crude Associated Crude
Terminal Oil Gas Oil
ESNAAD
Associated &
TAKREER BOROUGE FERTIL • Provides a range of facilities, services
Non-associated
• Operates two oil refineries: •Operates: • Operates two Ammonia and supplies to the oil and gas sector,
Gas
Plants and two Urea including:
- Abu Dhabi Refinery: located in -3
ethane crackers with a Das Island
Plants in the Ruwais - Offshore marine support services
Umm Al Nar, capacity of 85,000 combined annual capacity of 3.6
Industrial Complex: (operates a fleet of 39 vessels)
bpd million tonnes of ethylene ADGAS
Hydrogen Zirku Island - Berthing, bunkering and bulk supply
- Ruwais Refinery: capacity of -5
polyethylene, 4 polypropylene -A
mmonia: total capacity
• Operates a Liquified Natural Gas - Port services and well services
817,000 bpd plants and 1 low density of 3,300 metric tonnes
(LNG) Plant on Das Island (180 km - Drilling fluids services
polyethylene plant with cross per day
• Capacity at the Ruwais refinery north-west of Abu Dhabi) - Specialised production chemicals
linking capability and an annual -U
rea: total capacity of LNG, LPG
increased from 417,000 bpd to
manufacturing capacity of 4.5 5,800 metric tonnes Paraffinic • The LNG Plant is unique • Operates a Grinding Plant, Blending Plant
817,000 bpd upon completion of the Naphtha and
million tonnes per day worldwide in its ability to process and Brine Plant in the Mussafah Offshore
Ruwais Refinery West (RRW) project Sulphur both associated gas, which is Supply Base
• Operates a compounding • Total urea export of 1.9
Nitrogen a byproduct of oil extraction
manufacturing plant in Shanghai, million metric tonnes
(Gaseous/ processes, and natural gas
Liquified) China per year
extracted as a free product from
Refined gas reservoirs IRSHAD
Products Refined Products
(Domestic) Urea and Liquid • Average annual production: 8 • Provides marine services to the petroleum
(Local Sales) Ammonia
million tonnes of Liquified Natural ports of Abu Dhabi and to the O&G
Ethylene, Gas (LNG), Liquified Petroleum sector, with a fleet of 53 vessels. Services
Polyethylene and Gas (LPG), paraffinic naphtha and include:
ADNOC DISTRIBUTION ELIXIER Polypropylene liquid sulphur
Resins - Operation and administration of ADNOC
• Operates 223 motor vehicle service • Operates two facilities: petroleum ports
stations across the UAE, and has - Pilotage and loading of crude oil
-R
uwais Air Separation Plant:
taken over 75 petrol stations in the - Diving operations and SPM maintenance
provides gaseous and liquefied
Northern Emirates. Services include: - Ferry terminal operations and
nitrogen to Borouge via pipeline; End users transporting offshore oil fields employees
- Storage and distribution of liquid liquefied nitrogen to ADNOC
- Port and container yard operations.
fuels and LPG subsidiaries via tanker; and liquid
- Maintenance of aids to navigation
- Lube oil and grease production and oxygen to end users in the UAE
marketing -M
irfa Nitrogen Plant: provides
- Bunkering (marine) and aviation nitrogen for injection into gas
fuelling reservoirs located at Habshan
- Auto services and convenience This illustration excludes assets which are still in developmental stages (Al Yasat Petroleum and Al Dhafra
stores
Petroleum), and excludes the Independent Operators (ADOC, Bunduq and TOTAL ABK).
Flow of products Industrial terminal for processing, storage

and export of products
Products and Markets Stakeholders
The ADNOC Group is a reliable energy provider to the UAE and to the world. Our oil, gas, refined As an energy supplier, we have many responsibilities — to our employees, contractors and
products and petrochemicals are sold across six continents and contribute to empowering partners, the government and regulators, industry partners and to our communities.
economies and industries all over the world.
Asia Working together with our stakeholders allows us to appreciate different viewpoints Local communities
Crude Oil (‘000 bbl) and maintain a global perspective. It also helps us build mutually beneficial and long-
Our relationships with communities
Total 637,711 lasting relationships and create opportunities that are aligned with their interests.
are important for all our activities, but
Condensate (‘000 bbl) This is fundamental towards helping us continue to improve our company.
Total 2,078 particularly for major new projects
We use a variety of mechanisms to engage our stakeholders, including internal and where our presence may bring about
North and Europe Petroleum Products
changes in the local areas, such as
external one-on-one and group dialogues and briefings, senior executive speeches
South America Petroleum Products
(‘000 tonnes)
jobs and support for community
Jet Oil 94 and press releases, community consultations, email communications, publications
Crude Oil (‘000 bbl) (‘000 tonnes) development, as well as increased road
Gas Oil 684 such as the Annual Sustainability Report and our quarterly newsletters.
Total 501 Jet Oil 316
Gas Oil 558
Fuel Oil 2,030 traffic and changes in the landscape. We
Gas ('000 tonnes) Naphtha 7,809 engage with local communities through
Fuel Oil 8
LNG 35 Gas (‘000 tonnes) public consultations and meetings with
Sulphur (‘000 tonnes)
Petroleum Products Total 228
LPG 8,969 local representatives.
(‘000 tonnes) LNG 3,975
Jet Oil 4,501 Petrochemical Products Paraffinic
Gas Oil 626 ('000 tonnes) Naphtha 3,232
Naphtha 55 Polyolefins 127,813 See page 46 to learn more
Sulphur (‘000 tonnes)
Urea 29,335 about how ADNOC engages
Petrochemical Products Total 2,317
('000 tonnes)
with local communities.
Petrochemical Products
Polyolefins 17,312 ('000 tonnes)
Urea 781,590 Polyolefins 1,405,454
Urea 155,047 Industry
We work through industry groups to
help establish standards and address
complex energy challenges, and we are
members of industry bodies such as
the International Association of Oil &
Gas Producers (IOGP) and the American
Petroleum Institute (API). Our Group
Companies are also members of the
industry associations relevant to their
operations.
Academic and training institutes

In addition to establishing our three
Employees and responsible operations depend on
academic institutes, which include the
the capability and performance of our
Our nearly 65,000 employees are the Petroleum Institute, we collaborate
suppliers, contractors and partners. To
drivers for our continued business with research institutions on various
this end, we set operational standards
success. We keep our employees initiatives across the UAE to encourage
Africa informed about the context within
through legally binding agreements.
more youth towards innovation and
Australia & Training and dialogue also help build the
Crude Oil (‘000 bbl) which they work and have established excellence on future energy and
Total 5,769
New Zealand capability of our contractors.
channels for our employees to raise sustainable development.
Crude Oil (‘000 bbl)
Petroleum Products
Total 14,887
concerns across our operating sites.
(‘000 tonnes) We have an ongoing dialogue with Governments and regulators Customers
Jet Oil 396 Petroleum Products our employees about a wide range of We engage with the local and federal
Gas Oil 1,835 (‘000 tonnes) ADNOC’s millions of customers
Fuel Oil 7
issues, including benefits, development government on many fronts and aim
Jet Oil 104 range from consumers purchasing
opportunities and diversity. to maintain dialogue with all relevant
Gas (‘000 tonnes) Gas (‘000 tonnes) our fuels and lubricants to large-scale
government agencies, ministries at
LPG 12 LPG 33 industrial customers of oil, natural
Suppliers, contractors and partners every stage of our operations. We
gas and petrochemicals. Through our
Sulphur (‘000 tonnes) Petrochemical Products engage in policy debates that are of
Total 1,994 ('000 tonnes) Like our industry peers, ADNOC rarely concerned Group Companies, we
concern to us and the communities
Polyolefins 55,574 works in isolation; approximately 400 engage with customers about supply
Petrochemical Products in which we operate, such as climate
Urea 170,620 million man hours were recorded by chain management, GHG emissions and
('000 tonnes)
change and energy, water management,
The figures above represent ADNOC's Polyolefins 160,816 the contractor workforce across our the sustainability of our products across
security and nationalisation.
share of total annual sales. Urea 129,820 group-wide operations in 2015. Safe their life cycle.
how we
operate
Highlights
• 15 independent members
of ADNOC’s governing
board (the SPC)
• 8 HSEMS elements,
covering all aspects of Our role in supplying energy comes with many responsibilities
our operations including - to our shareholders, customers and communities. Our
employee and contractor employees, technical expertise, financial strength, and the
management management practices that we build into the fabric of our
• 3 integrated levels operations are central to establishing a high-performance
of governing HSE culture and to creating long-term value for ADNOC and our
performance stakeholders.
• 3 tiers for emergency Achieving this requires a driven corporate governance structure
response and crisis
that promotes the company’s vision and objectives; robust
management
processes to effectively manage our HSE, security, quality and
reputational risks; and effective emergency response practices
that can be quickly mobilized in the event of an incident.
As we strive towards operational excellence, we will continue
to seek new and improved ways that will help us perform
better. We expect the same from our contractors and suppliers.
ADNOC’s Governance Structure

The Supreme Petroleum Council (SPC) functions as ADNOC’s governing board
and oversight committee. The Council is the highest authority responsible for the
petroleum industry in the Emirate of Abu Dhabi; it formulates and oversees the
implementation of Abu Dhabi’s petroleum policy across all areas of the petroleum
industry to ensure that the set goals are accomplished.
Internal Audit
Audit Committee SPC
Executive Leadership Team

(ELT) Committee CEO
Enterprise Resource Planning
(ERP) Steering Committee
Group Compliance Committee
HR Grievance Committee Directors
HSE Executive Committee
Investment Committee
Tender Board
Financial governance Risk identification and mitigation

ADNOC reports directly to the SPC At ADNOC, we place great emphasis on
on matters of strategy and financial the identification and mitigation of HSE
performance, which is regarded as risks at every stage of our operations
highly confidential under both ADNOC to ensure that hazards are identified
and Abu Dhabi protocols. and the associated risks mitigated to
a level which is as low as reasonably
An independent audit committee,
practicable (ALARP).
appointed by the SPC, reviews
ADNOC’s financial performance and ADNOC activities, including new project
reports, as appropriate. Additionally, developments and major modifications
the Abu Dhabi Accountability Authority to existing facilities, are subjected
(ADAA) provides independent external to compulsory Health, Safety and
assurance that ADNOC’s activities are Environmental Impact Assessments
managed economically, and ensures (HSEIAs).
accuracy as part of its mandate to
The framework by which HSEIAs
review key government owned entities.
should be prepared prior to submission
ADNOC’s operations and major to ADNOC is clearly stipulated in the
developments are funded primarily relevant ADNOC Code of Practice.
from the company’s own cash flow. HSEIAs are thoroughly reviewed by
Surpluses are available for distribution the ADNOC HSE Unit and the ADNOC
as dividends. these are paid to the Abu HSE Steering Committee, and must
Dhabi Investment Authority (ADIA) and ultimately be approved by the ADNOC
Abu Dhabi Investment Council (ADIC), HSE Steering Committee before project
two of Abu Dhabi’s sovereign wealth execution can proceed.
funds.
Operating framework HSE Governance Structure
ADNOC HSE Unit

Our commitment to an outstanding performance is built from the solid foundation of our long- Develop ADNOC HSE policy and strategy
standing Health, Safety and Environment (HSE) policy, and is the foundation of our oversight and maintain overview of corporate HSE
performance
over our operations. This policy is also embedded within our operating standards and our
management systems. Verify compliance by the ADNOC Group
Companies with the corporate HSE
standards, policies and the ADNOC Codes
of Practice
Codes of Practice HSE Management System (HSEMS), their own performance, in accordance
covering all aspects of employee and with annual and five year plans that are Liaise with Federal and Abu Dhabi HSE
To ensure that all aspects of health, authorities on behalf of ADNOC Group
contractor activities. The HSEMS is agreed upon with the HSE Unit.
safety and environmental management Companies
intended to serve as an engine driving
are carried out successfully and
ADNOC HSE policy implementation
consistently across the oil and
and continuous improvement in
gas sector in Abu Dhabi, ADNOC Individual Group Company HSE Divisions ADNOC Group HSE Steering Committee
performance. ADNOC HSEMS Framework
established a centralised framework
Responsible for all managerial and Consult with Group Companies on any
of operational standards against which proposed changes to the workplace,
The ADNOC HSEMS Leadership & Commitment operational aspects of HSE
compliance is mandatory. practices or procedures that could affect HSE
framework is comprised of 8 The individual Group Company HSE Divisions functions
These standards provide a integral elements. Policy & Strategic Objectives
report directly to their respective companies
comprehensive cover of petroleum but co-ordinate with the ADNOC HSE Unit on Create a collaborative approach amongst the
industry activities with distinct HSE Organisation, Resources & all HSE matters Group Companies and coordinate efforts to
Once the HSEMS is established, the maintain efficiency across their operations
Competence
risks or impacts, and their requirements ADNOC Group Companies are expected
adhere to UAE Federal Laws and to evaluate their individual performance Risk Evaluation & Management
Regulations. The operational standards via a self-assessment protocol. The
are collectively known as the ADNOC scores and the HSEMS overall are Planning, Standards and Procedures
Codes of Practice. audited regularly by a dedicated team
of experts appointed by the ADNOC Audit
HSE Management System HSE Unit, with representation from
the ADNOC Directorates and the Implementation & Monitoring
The ADNOC Codes of Practice ADNOC Group Companies. The Group
provide structured guidance for the Companies are also required to audit Management Review
development of a comprehensive
Operating with integrity Managing our contractors aspects of our products and are
available to our customers and to those
A considerable part of ADNOC’s
who transport our products. Life cycle of products
group-wide operations depends on
ADNOC is fully committed to operating with integrity and our operations specifically prohibit contractors to carry out a wide variety Both our refined and unrefined products As our primary activities are in
of work. We strive to maintain a stable undergo comprehensive quality the extraction and processing
engaging in unethical conduct. This extends to all aspects of our activities, including how and fair business relationship with our assurance and quality control testing stages of a product’s life cycle,
we engage third parties and contractors, the security practices that we enforce, and how we contractors throughout all stages of our before entering the marketplace, to the majority of the life cycles of
manufacture and deliver our products. projects, from procurement to delivery. ensure international and customer our products occur after they
specifications are strictly met. have left our control.
The majority of our contractors’ work
is carried out in and around areas of For our petrochemical products,
senior management in the deterrence of Customer outreach and satisfaction where a closer interaction with
relatively high risk. Particularly for large
fraud by evaluating the effectivness of consumers takes place, the
and long-term contracts, there is a Customer satisfaction is critical to our
controls in relation to the potential risks. health and safety impacts are
need for early identification of clear outward-facing companies' (namely
Known incidents of fraud or corruption assessed for improvement
and common HSE objectives and it ADNOC Distribution, Borouge and
are investigated and reported to the during the marketing and
is imperative to include these in the FERTIL) as our success at home and
concerned authority in the relevant promotion; storage; distribution
contract. abroad is determined to a large extent
Group Company or ADNOC Head Office and supply; and use and
by the reputation of our products and
for appropriate action. disposal stages as well as
Product stewardship our commitment towards customer
service excellence. during their manufacturing and
Security We seek to work with those involved production stage.
in the life cycles of our products to Our Group Companies' approach
Security for ADNOC’s onshore and towards customer satisfaction is
enhance environmental and social
offshore facilities is provided by the complemented with other methods
performance along the supply chain and
Critical Infrastructure and Coastal such as performing regular customer
to promote responsible product use and
Protection Authority (CICPA), which was visits, product trials and technical follow-
management.
established in 2007 to ensure the safe and standards related to advertising,
ups where possible.
and uninterrupted operation of assets Our internal audits and management promotion and sponsorship. On a
critical to the economy of Abu Dhabi. systems are central to our approach voluntary basis, ADNOC Distribution
to product stewardship. Many of our Marketing communications
makes reference to the British Code of
The CICPA, a separate body of the
products are required to have specific The Group Companies' individual Advertising, Sales Promotion and Direct
government of Abu Dhabi, works closely
material safety data sheet (MSDS). marketing departments strictly adhere Marketing that has been developed by
with ADNOC to develop plans and
These MSDSs outline the relevant to the provisions of signed customer the UK Advertising Standards Authority
procedures regarding the security of
health, safety and environmental agreements and to applicable laws (ASA).
ADNOC installations.
The international shipment of our
products necessitates that ADNOC
adopt the highest security arrangements
Corruption and anti-competitive The ADNOC Disciplinary Code specifies
across our maritime operations,
behaviour that misusing a position in ADNOC or
especially in the wake of piracy attacks
a Group Company in order to receive
Our procedures require appropriate due that have become a substantial threat
personal benefits from other employees
diligence in selecting and engaging third to the shipping industry in recent years.
or outsiders will result in dismissal
parties, the maintenance of accurate To ensure their safety in international
without notification or benefits.
and reasonably detailed records of waters, ADNATCO & NGSCO’s vessels
expenditure and the implementation ADNOC Group Companies are are fitted with the latest and most
and maintenance of specific approval subjected to audits by ADNOC’s Internal rigid non-lethal security measures. The
requirements for our transactions. Audit Unit in addition to regular audits by unique security designs developed by
their respective internal audit functions ADNATCO & NGSCO have contributed
ADNOC policy bans employees from
where the reliability and integrity of towards establishing international
making use of their jobs or positions
financial and operating information, maritime security standards, such as the
to acquire an illicit personal benefit or
as well as the means used to identify, Best Management Practice Guide No. 4
interest, financial or otherwise, from
measure and report such information, (BMP-4) For Protection against Somalia
any gift, commission or donation made
are carefully evaluated. Furthermore, Based Piracy.
by any person who has a working
these internal audit functions assist
relationship with ADNOC.
Group Companies Audit Commitees and
In 2015, ADNOC issued the Anti-Fraud

Contractors working for ADNOC and our Group Companies are subject to the ADNOC HSE Policy, HSE Codes Policy and established a ‘Complaint
of Practice, ADNOC standards and procedures, and UAE Laws and Regulations. In addition, specific HSEMS Review Committee’ consisting of Managers
expectations have been set to ensure effective management of contractors’ HSE performance. from the Internal Audit Unit and the Legal
and Compliance Unit.
Emergency response and crisis management ADNOC Tiered Emergency Response Structure
Tier
Our operations are required to have systems in place to identify, manage and effectively respond 03
Tier
to incidents, emergencies and crises. Collectively, these requirements are designed to enable our Tier
02
operations to safely return to full function as soon as possible. 01
Handled Requires Requires national
by on-site mutual aid or international
in 2015 to share knowledge with resources assistance
assistance
international professionals.
Tiered emergency response structure

Crisis management is dominated by
Increasing severity of incident
a three-tier response structure where
high level leadership commitment,
constant communication, mutual aid
assistance, and clear accountabilities on
Collaboration and mutual aid Business continuity management ensure that our operations will continue
preparedness and response are key.
to fulfil our commitments towards local,
The potential threat of emergencies ADNOC plays a central role in
The philosophy of the tiered response regional and international customers.
does not only exist within ADNOC’s developing the UAE’s economy and
structure is that every facility has the operations, but also exists as a result of in stabilising international oil trade. The plans are built with due
capacity to provide an immediate the industrial, commercial and political Interruptions in ADNOC’s supplies could consideration of critical business
response, directly supported where activities surrounding ADNOC’s areas have an adverse impact on oil trade in units and processes, to ensure their
needed by a corporate response of operation. ADNOC’s Corporate Crisis international markets. uninterrupted operation in the event of
organisation and by mutual aid. The final Team therefore works closely with various scenarios that might affect our
tier of emergency response is provided With governmental direction, ADNOC
the UAE National Crisis & Emergency business continuity. Such scenarios
via ADNOC's promotion and expansion developed a Businesses Continuity
Management Authority (NCEMA), the are actively prepared for by our
of its relationships with the regional Management Policy and is revising its
Maritime Security Executive and the participation in regular exercises jointly
and international oil industry and oil spill business continuity plans in alignment
UAE Armed Forces. with the National Crisis & Emergency
response providers. with the UAE Business Continuity
Management Authority (NCEMA).
Management Standard 7000:2015 to
Resources and capabilities in the process of constructing a third

OSRC on Zirku Island, which has
Our corporate teams are strategically
been strategically selected to ensure
established across the Abu Dhabi
maximum coverage across our offshore
Emirate, with two major oil spill
operations.
response centres (OSRCs) located
at Mussafah and Ruwais, a response Considering the high level of integrated
outpost at Al-Dabbiya, and a response activities performed across ADNOC’s
vessel anchored between Zirku Island offshore operating companies, ADNOC
and Das Island for quick initial response. also has an Offshore Mass Evacuation
A third oil spill response centre is under Plan (OMEP) in place to improve
construction at Zirku Island and is preparedness in the unlikely occurrence
expected to be in full operation by the of an event that requires mass
end of 2016. evacuations.
The sensitive nature of Abu Dhabi’s The competency of our staff is
marine environment demands that critical to our success in anticipating
ADNOC’s Crisis & Emergency and effectively responding to crisis
Management Teams be on stand-by and situations. Our in-house training Strengthening international collaboration
ready to mobilize at all times. As the programmes are accredited by the
size and complexity of our operations UK’s Nautical Institute to meet the ADNOC is a founding member of the Regional Clean Sea Organization (RECSO), a
grows (particularly with the expansions requirements of the International leading non-profit environmental organization established by major oil and shipping
witnessed across the ADNOC Group Maritime Organization (IMO). With companies in the GCC region that functions on the concept of ‘mutual aid’. Jointly
Companies' island structures and oversight and support from the National with the 13 members, ADNOC contributes towards the largest ready reserves of
offshore installations), so must our Emergency Crisis and Disasters oil spill response resources in the world, and providing direct access to world-class
speed of an response in the event of Management Authority (NCEMA), services and expertise that can be mobilized quickly for member companies to
an emergency. ADNOC is therefore our personnel undertook several contain and clean up a major oil spill.
international exchange programs
PEOPLE
Highlights
• >65,000 employees The continued success of our company is embedded in our
and 165,000 contractors
commitment to health and safety and our dedication to
across ADNOC and Group
providing a work environment in which everyone is treated
Company operations
fairly and has the opportunity to maximise their potential.
• 535 million man hours
recorded across our Having our people return home safe and well at the end of
employee and contractor every work day and enabling them to end their working life fit
workforce and healthy is central to everything we do. Regardless of where
• 2.5 million man hours our people are located or the type of work they undertake,
of training delivered to we strive to create a working environment that is free from
our employees at a total occupational illness and injury.
spend of AED 309 million This is reflected in the processes and controls we have in place
• 120 labour welfare throughout our organisation. Our principles and requirements
inspections across our for safe, reliable and compliant operations are part of our
onshore and offshore HSEMS against which all ADNOC operations are required to
labour camps align. Our operations are also required to have systems in place
to identify, manage and effectively respond to foreseeable
crises and emergencies. Collectively, these requirements
are designed to enable our operations to safely return to full
function as soon as possible.
Keeping our people and operations safe

We are relentless in our pursuit of safety so every employee and
contractor goes home from work each day safe and healthy. This
commitment also extends to members of the communities where
we operate. We strive to create and maintain an injury-free work
environment and to apply robust operating and maintenance practices
across our facilities and work places.
Managing occupational safety
rd Ris
za k
Ha
Employee
Implementati
porting
Competency
& Engagement
t Re
o
en
n
d
of
ci
In
Ri
sk
Mon
itoring and
Managing our occupational safety risks

LTIF - Exposure Hours FAR - Fatalities
The risks inherent to our operations include a number of hazards that may have a low probability
0.2 2,500 2.5 25
of occurence but carry extremely serious consequences in the event they do occur.
Lost Time Injury Frequency (LTIF)

2.21
2,000 2.0 20
per million hours

0.14
1,500 1.5 15
Hazard identification, risk assessment and implementation of regulations and studies. 1.55
0.1 0.10 0.10 1.39 1.38
risk control measures based on the appropriate risk control 0.1 13
12
Preventing loss of containment of materials is a primary 0.09 1,000 1.0 11 10
hierarchy, are central to our management of occupational 0.93
goal of industrial process safety management programmes. 865 8
safety. These requirements are integrated in our ADNOC 710
A thorough understanding of the hazards, identification of 589 581 500 0.5 5
Codes of Practice and our group-wide HSEMS, the latter 535 5
a complete range of failure events, detailed analysis of the
of which our operations are required to have in place and 0 0 0
consequences of failure events, and the analysis of process 0
implement.
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
risks accounting for all the safeguards can help significantly in
ADNOC requires all operations to have a system in place that preventing and mitigating loss of containment incidents.
encourages employees and contractors, where relevant, to
participate in identifying and reporting unsafe conditions and
take responsibility for managing these conditions safely. An
essential principle of our employee engagement principle is
empowering our employees to intercede or refrain from a job Fatalities (by activity)
or task based on their view that the work is considered to
pose a threat to HSE, without threat of reprisal. This principle
is stated explicitly in ADNOC’s HSE Policy. 1 1
Road safety
Incidents involving motor vehicles remain one of the most 1 1
significant causes of injury and fatality in the oil and gas
industry. As part of the second revision to the ADNOC Codes 1
of Practice Manual, a new Code of Practice was developed
to provide our Group-wide operations with a consistent
framework for assessing and controlling the health and safety Drilling, workover, well services
risks associated with road transport activities. (1 incident)
Production operations
Our safety performance (1 incident)
The year 2015 was one of the safest years for our operations
Construction, commissioning
on record. Our lost time injury frequency (LTIF) and fatal
decommissioning (1 incident)
accident rate (FAR) of 0.10 and 0.93 respectively were 36%
and 64% lower than the respective industry benchmarks Maintenance, inspection testing
reported by the International Oil and Gas Producers (1 incident)
Association (IOGP).
Transport by land (1 incident)
This is testament to the strong leadership across our operating
sites and to the progress we have made in creating an
engaged and vigilant workforce. Sadly however, we deeply Fatalities (by cause)
regret that two employees and three contractors lost their
lives while working for ADNOC in 2015, reminding us that we
need to progress further and work aggressively to achieve our Engaging our workforce on safety
goal of everyone going home safe and healthy every day.
2 2
Engaging our employees and contractors is an essential feature
Process safety and asset integrity of our occupational safety management approach. In addition to
ensuring their competence of performing tasks and activities in
In 2015, a total of 28 tier 1 and 38 tier 2 process safety events a safe manner, people who carry out HSE-critical activities or are
were recorded across our operations. 1 engaged with HSE-critical installations are in a unique position
At ADNOC, we manage and safeguard the integrity of our to identify the strengths and weaknesses of existing safety
facilities, operating systems and processes by applying Explosions or burns (2 incidents) regimes, and hence assist in identifying and implementing
industry-wide and international safety standards and opportunities for improvement.
Struck by (2 incidents)
procedures throughout our facility and asset design,
construction, start-up activities and modifications. These Fall from height (1 incident)
include Control of Major Accident Hazards (COMAH)
Focusing on the health and welfare of our people Work’ is integrated in all aspects of our forced or compulsory labour.
117
relationships with our employees, and
extends to our contractor workforce as Non-retaliation and grievance
occupational health inspections well. Suspected cases of human rights
The acute and immediate nature of serious accidents makes them an obvious health and safety violations are thoroughly investigated A combination of measures is applied to
2,040
focus; however the life-altering disabilities that can result from chronic exposure to health risks by ADNOC. Entities found not to be ensure our employees’ job satisfaction
compliant with ADNOC’s policy of and to ensure their job concerns are
are equally important. food, surface swab and water suitably addressed. These include
promoting and upholding respect for
samples collected for the human rights are blacklisted from open forums, workshops, employee
chemical and bacteriological providing services to ADNOC and our satisfaction surveys and regular
Managing occupational health risks and sophisticated investigative tools such as Human rights and labour welfare laboratory analysis Group Companies. performance appraisals.
exposures audiometric testing, X-ray, MRI imagery
ADNOC has a zero tolerance stance Procedures for confidential employee
etc. The medical data obtained through ADNOC does not hire anyone under
Our operations are required to identify towards human rights abuses or claims the legal working age of 18. Forced, grievance are embedded in ADNOC’s
these surveillance measures provides
120
and establish an inventory of all current of abuse, and significant measures are compulsory and child labour are strictly HR Policy, which extends to our Group
a powerful tool for assessing the
or anticipated agents that are potentially taken to safeguard human rights across forbidden under the UAE Federal Labour Companies and Independent Operators,
exposure risks present in the workplace
hazardous to health, and assess the our operations and sphere of influence. labour welfare inspections Law and ADNOC takes a firm stance on and ensures a fair and impartial
and for evaluating the adequacy of
health risk associated with exposure to ensuring no violations of this kind take approach.
control measures in minimising those Whilst employee labour associations 94 inspections onshore camps
these agents. place amongst our workforce. In 2015,
risks. and collective bargaining agreements
This is followed by the implementation are not permitted in the UAE under no ADNOC operations were identified
26 inspections offshore camps
of effective control measures to Federal Law, the principle of ‘Decent as being at risk of incidents involving
eliminate or minimise the health risks
to as low as reasonable practicable
(ALARP),and then a regular review
of the effectiveness of these control
Labour welfare and
measures. This process, known as
wellbeing
occupational health risk assessment
(OHRA), is required for all ADNOC's ADNOC acknowledges the
projects and operations. contribution that foreign workers
Our screening criteria and occupational make to our operations and is
exposure limits are aligned with local committed to protecting their
regulatory limits or are set by ADNOC rights and empowering them to
wherever regulatory limits are absent fully benefit from their residency
or found not to provide sufficient in the UAE over the duration
protection against the hazardous of their work on our projects.
agents inherent in our operations. ADNOC has a Labour Welfare Unit
Our priority is to control occupational that was established to oversee
exposures at their source; in situations the welfare and labour conditions
where we cannot control the source of suppliers, contractors and
by engineering methods or otherwise, workers employed by contractors
a range of measures are employed on ADNOC projects.
including the provision of personal The labour welfare team, with
protective equipment (PPE). representation from ADNOC
welfare specialists and from our
Health surveillance operating companies, oversees
various welfare aspects including
As part of an effective occupational
wages and payment, annual
health risk management program, health
leave, and labour living conditions,
surveillance is required where the
Occupational health practises amongst others. The labour
OHRA process has identified personnel
welfare team refers to the UAE
exposed to extreme, high or medium
ADNOC launched an internal, Federal Labour Law, international
risks to health.
group-wide occupational best practice, and ADNOC Codes
ADNOC’s health surveillance is a two- health audit to improve and of Practice as reference to define
programme that is built on medical further standardise reporting decent and fair practice as well
examinations and screening (conducted practices across our projects as violations of workers’ rights.
at pre-employment stage and then and operations, including our These principles are clearly set
regularly throughout employment contractor workforce, and to out in ADNOC’s contractual
history); and biological monitoring and ensure that occupational health agreements and their practice is
health surveillance tests. Depending risks are well managed and our evaluated prior to the decision
on the type of exposure, the latter may group companies comply with the making process of whether or not
involve biochemical analysis and more relevant legal requirements. to proceed with an investment.
Developing our people
We are committed to our employees’ professional development and supporting their career
goals. We seek to foster a diverse workforce of highly talented individuals committed to
achieving our business priorities. We use a long-term, career-oriented approach that includes
recruiting outstanding talent and developing individuals by providing them the opportunity
to complete a wide range of assignments. Our employee culture is grounded in a shared
commitment to safety, integrity, and collaborative and high-quality work.
We are a performance driven Competence Assurance Management overcome the particular challenges
organization that invests in our people, System (CAMS). associated with historically male-
leveraging our expertise, knowledge and dominated organisations.
Employees can also apply for study
insights to optimise our performance
leave should they chose to further their
and unlock the full potential of our Working in remote locations
education whilst working for ADNOC. In
natural and human resources.
2015, there were 368 employees on full- The remote nature of many of our
time and 343 employees on part-time operations often requires us to widen
Workforce diversity study leave. our recruitment options and employ
Throughout 2015, our workforce skilled people who can advance our
comprised over 65,000 employees and Empowering our female workforce safety and production requirements
165,000 contractors. while residing outside the community
In recent years, more women have Women in industry
and working in remote locations.
Our employees come from around the started to fill our technical positions
world. ADNOC places high value on the in engineering disciplines and In 2015, ADNOC supported the ‘Women in
benefits that diversity brings, offering geosciences, and non-technical support Industry’ conference – an annual event which
differing perspectives on problem- positions. Women represented 10.3% of Employee diversity by age is held during the Abu Dhabi International
solving, opportunities for team-building our employees in 2015. Petroleum Exhibition and Conference
31%
that extend beyond the workplace, and (ADIPEC). ADNOC hosted a roundtable
Women play a critical role in our discussion during the conference on topics
creating a work environment where
organisation’s development and make < 30 years old that include leadership strategies, overcoming
people are motivated to excel and
a unique contribution to traditionally cultural differences in the workplace and
perform to their full potential.
Training and development

male-dominated workplaces. ADNOC
is committed to creating inclusive 56% barriers to success in the workplace, and
achieving a work-family life balance.
workplace policies that support women 30 – 50 years old
In 2015, the ADNOC Group Companies as they navigate their careers in the oil
spent AED 309 million to deliver 2.5
million hours of employee training.
industry and participate in leadership
roles, by strengthening their technical 13%
and leadership skills and helping them >50 years old
Across ADNOC and our Group
Companies, we provide a broad range
of opportunities for our people - from
on-the-job learning and mentoring Breakdown by nationality
programs for our graduates and
future leaders through to online and
classroom-based courses. Through our In order to attract the qualified workers we need in today’s competitive. Standard ADNOC benefits for employees include
N & S America, Europe
internal training systems, we provide Rest of Africa
competitive labour market, ADNOC places paramount life insurance, health care, disability coverage and leave
and Australia
learning opportunities focussed on importance on being able to offer appropriate accommodation, policies (e.g. annual leave, maternity leave, sick leave, and
4.6% 3.7%
technical, compliance and leadership remote area allowance (RRA) and lifestyle choices that provide Hajj travel), educational assistance and retirement provisions.
skills, as well as functional skills that our people with a suitable work-life balance at these locations ADNOC provides housing for the majority of employees either
Non GCC MENA Rest of Asia (see page 44 for more information on ADNOC’s housing and through direct provision or a stipend.
cover financial and legal aspects.
10.3% 46.8% lifestyle provisions for workers and their families).
ADNOC also has a three to four year For UAE nationals, ADNOC contributes to a pension
Bangladesh, India, programme that is managed by the Abu Dhabi Retirement
core training programme specially Pakistan, Philippines
Emirati Nationals Benefit plan obligations Pensions and Benefits Fund (ADRPBF), an entity of the
formulated for promising new graduates 34.1% 42.1%
(known as ‘entry point’ employees) who ADNOC seeks to be an employer of choice and our minimum Abu Dhabi Government. Expatriate employees receive the
are keen to serve the UAE’s national oil Other Asian countries wage and compensation packages are highly competitive with company's end of service benefits, which equate to one
and gas economy. In 2015, there were 4.7% market rates in the oil and gas sector. month of salary for every year worked, increasing to 1.5
1,807 entry point employees across the
Other GCC Nationals months of salary for every year worked after three years of
0.5% ADNOC’s entry-level compensation package is highly service.
ADNOC Group Companies participating
in this programme, known as the
ENVIRONMENT
Highlights
• AED 698 million in Protecting the natural environment is a huge challenge for all
environmental expenditure
of us, and at ADNOC we are determined to play a constructive
• 13% reduction in flaring part in delivering reliable, affordable and positive energy, and
compared to 2014 levels we have come a long way to ensuring environmental issues
• 578 million GJ consumed are key components of our corporate culture. As we seek to
(of which 548 million increase production of oil and natural gas to meet growing
GJ is direct energy and global energy demand, we will continue to take steps to reduce
22 million GJ is indirect
flaring and the GHG intensity of our operations, and contribute
energy)
to effective long-term solutions to manage climate change
• 10.9 million GJ energy risks.
savings (corresponds
to 1.9% of energy As part of our HSEIA process, our operations are required to
consumed) assess the environmental impact and risks of new projects
• 13 air quality monitoring and substantially altered existing projects, and ensuring
stations environmental risks are managed to an acceptable level and do
• 2.3 million mangrove not result in unacceptable consequences to the environment.
seedlings across our This is supplemented with continuous environmental
nurseries monitoring during the development and active phases of our
projects, through to decommissioning.
Biodiversity and ecosystem services

Biodiversity and ecosystem services are important for society, and we work
to protect them across our operations and throughout the life of our assets.
ADNOC also takes a proactive approach towards marine development and
has a portfolio of carbon sequestration and biodiversity enhancement projects
across the Emirate of Abu Dhabi.
2.3 million mangrove seedlings across

ADNOC’s nurseries in Al Dabbia and Zirku Island, with
550,000 planted across the Emirate of Abu Dhabi
1 hectare of seagrass plantation, established

in a process that involves the relocation of mature plants
taken from healthy donor beds to the restoration site
184 artificial coral reef structures deployed in the

Western Region of Abu Dhabi - in three locations; namely
Makasib Island, Rock Mosfayer and north-west of Nitah
Island
Biodiversity protection
See page 19 for more
ADNOC’s group-wide operations are information on ADNOC’s
located in diverse terrestrial and marine HSEIA process.
environments, some of which contain
ecosystems with outstanding biological,
geographical or social value, including
species designated as protected by the
Working in sensitive areas
International Union for Conservation of Eight of our major group-wide
Nature (IUCN). operations are located within or adjacent
to the boundary of a protected area,
The Environmental Impact Assessment
including one new drilling project which Blue Carbon Sequestration Projects
(EIA) studies performed as part of
commenced in 2015 that took place on
ADNOC’s mandated HSEIA process Blue carbon is the carbon stored
Hail Island, within the Marawah Marine
integrate biodiversity considerations in the world’s oceans and marine
Protected Area.
including the identification of protected ecosystems. The value of these
areas and endangered species, their We require executive approval before ecosystems as carbon sinks and
roles in different ecosystems and any physical activities take place important habitats for maintaining
habitats, their vulnerabilities and wherever our planned activities may coastal health and biodiversity is
cultural significance. These findings enter a protected area, and work integrated in ADNOC’s marine
are then integrated into biodiversity collaboratively with the Environment development plans with a series
management plans to ensure potential Agency Abu Dhabi (EAD) throughout the of mangrove and seagrass
impacts are first avoided or secondly, impact identification, assessment and plantation projects undertaken
minimised, throughout the lifetime of mitigation phases of these projects. We by our teams in Abu Dhabi and
our projects from initial planning to continue to engage with the EAD for across ADNOC’s concession
final decommissioning. There are no monitoring purposes after our activities areas.
significant biodiversity impacts from begin to ensure best practices in
ADNOC’s activities to report in 2015. biodiversity conservation are in place.
Developing the marine environment

ADNOC’s Marine Environment
ADNOC operations within the ADNOC operations adjacent to
Development Team undertakes marine Protected area
boundary of the protected area the protected area (within 50 km)
biodiversity enhancement projects
across the Emirate of Abu Dhabi
that include mangrove and seagrass Shah Arab Gas
Arabian Oryx Protected

plantation, coral reef rehabilitation, and Located in Umm Al Zamool, Field Extractive
the deployment of artificial reef and fish 290 km south of Abu Dhabi, (Al Hosn Gas)
Area (Onshore)
habitat structures. the sanctuary is home to Qusahwira and
Mangroves, coral reefs and seagrass the Arabian Oryx, one of the Mender Oil
Extractive
ecosystems are common in the Arabian largest desert animals in the Felds
Gulf and among the most biologically Arab region and is classified (ADCO) Shah Gas Plant Processing and
diverse and economically valuable a vulnerable species by the (Al Hosn Gas) production
Artificial reef structure
ecosystems on earth, providing vital IUCN.
The abundance and diversity of fish ecosystem services that include
and coral species on the artificial coastline protection from storms and
structures deployed by ADNOC are erosion, and habitats, spawning and
comparable with those of adjacent Located in the UNESCO Storage and
Hail Island Exploratory Jebel Dhanna
Marawah Marine Protected Area

nursery grounds for economically loading including
natural reefs. Marine Biosphere Reserve,
important fish species. Maintaining (Al Hosn Gas) drilling (ADCO)
a 4,255 km2 reserve which port operations
and enhancing these ecosystems is
comprises a range of
therefore an established discipline in
unique marine and coastal
ADNOC’s environment development
(Offshore)
habitats including sand
team, which was established in 2009.
flats, mangroves, sea grass
beds and coral reefs, and Al Dabbiya
is especially important to Mubarraz Island Processing and
Oil Field Extractive
migratory and endangered (ADOC) production
(ADCO)
Monitoring Hawksbill Turtle Nesting Sites marine species such as the
Green Turtle and vulnerable
Zirku and Arzana Islands are important nesting grounds for Hawksbill Turtles, which are listed as critically endangered species such as the Dugong.
species by the IUCN. The coastal areas of the islands have been declared as protected exclusion zones to ensure
disruptions from human activity on the island does not impact the turtles’ nesting behaviour. These efforts are monitored
with annual visual assessments of the turtles and their nesting grounds, particularly during their spawning season.
Engaging on climate change policy and planning Halon Phase-Out Program

Flaring
In 2015, the flaring volume from our
combined upstream, midstream and
In 1997, ADNOC initiated a phase-out programme for
The UAE has been at the forefront of climate change negotiations, with ADNOC playing an active downstream operations averaged 61
halons (an ozone layer depleting substance). With the
million standard cubic feet per day
role in supporting the UAE in local, regional and global efforts that encourage sound policy exception of ADMA-OPCO and ZADCO, who are actively
(MMSCFD), which represents a 13%
solutions for addressing the risks of climate change, particularly in the context of rising energy exploring viable alternatives that are appropriate for their
reduction on 2014 levels.
complex offshore operations, all our ADNOC Group
demand and global economic growth. Companies operate halon-free. In addition to adhering to the prudent
practices of a responsible operator in
The halon stock remaining in our facilities is 30,000
preserving the environment and limited
Engaging stakeholders Managing GHG emissions across our tonnes. This is largely accounted for by ZADCO at their
resources, it is in our commercial
operations GHG Emissions (Scope 1 & 2) Upper Zakum and Zirku crude oil storage tanks, and by
ADNOC engages a variety of interest to minimise losses of gas and
ADMA-OPCO. The halon stock is planned to be phased-
stakeholders – including governments, In 2015, ADNOC’s net equity share of 30 to keep processes such as flaring to a
out by December 2017 under a progressive offshore
policymakers, consumers, academia GHG emissions across our group-wide minimum.
4.9 halon phase-out strategy.
and the public – on climate change operations was 26.8 million metric 4.8
3.7
3.5
Million tonnes CO2e

issues of direct relevance to its Group tonnes of CO2 equivalent. 20 3.1 10.2
9.6 10.3
of Companies, and aims to make a 9.8
8.6
We recognize the short-term and long-
meaningful contribution in climate Flaring
term warming effects of methane (CH4), The majority of our GHG emissions come from fuel combustion and flaring, which
change forums and collective efforts
nitrous oxide (N2O), hydroflourocarbons 10 8.6
9.5 occur at various stages of our hydrocarbon value chain. In the near and medium
dedicated towards setting domestic 7.7 8.6
Million standard cubic feet per day (MMSCFD)

8.3
(HFCs) and carbon dioxide (CO2), and term, we are working to increase energy efficiency while reducing flaring, venting 80
initiatives and targets.
their combined role in climate change, and fugitive emissions in our operations. Longer term, we are conducting and
Our organisation also subscribes and take a holistic approach to our 0.9 1.5 1.1 1.1 1.3 12.5
0 0.5 0.7 0.6 0.6 0.9 supporting research to develop breakthrough technologies such as carbon capture
60 12.5
to trade associations that engage GHG management by tracking and and storage, where our joint venture known as ‘Al Reyadah’ with Masdar is being 12.0 15.2 12.3
2011
2012
2013
2014
2015
29.6
on climate change issues globally, understanding our direct (scope 1) established as the Middle East’s first specialised company focused on exploring and 27.6
26.6 25.1
including the American Petroleum and indirect (scope 2) emissions on a Upstream (exploration, drilling and production developing commercial-scale projects for CCUS. The joint venture’s first project, with 40
26.2
Institute (API) and the International CO2 equivalent basis. We report GHG of O&G)
Emirates Steel Industries (ESI), will sequester 800,000 tonnes of CO2 annually.
Midstream (gas processing)
Oil and Gas Producers Association emissions from our share of equity- 15.3
(IOGP). Additionally, we contribute to accounted entities as well as our three Downstream (marketing, refining and We are also working towards improving our emission monitoring technology, with 20 10.0 15.8
7.3 9.4
petrochemicals)
a wide range of academic and policy independent operators. a planned move towards adopting an integrated predictive emission monitoring
Logistics & Maritime Transportation 13.3 13.6 12.5
system (PEMS) and continuous emission monitoring system (CEMS) across our 10.7
organizations that research and promote Independant Operators
7.8
assets and emission sources by Q4 2017. 0
dialogue on domestic and foreign policy
2012
2013
2014
2015
2011
issues.
Upstream (exploration, drilling and production
of O&G)
ADNOC CCUS Project - Quick Midstream (gas processing)
Facts Downstream (marketing, refining and
petrochemicals)
The ESI CCUS is the Middle East’s Logistics & Maritime Transportation
first commercial scale CCUS Independant Operators
facility and the only CCS project
outside of North America
Completion is set for Q2 of 2016 ADNOC ISO 50001 EnMS
Project is the first time injected In 2015, we made significant

CO2 will be used for EOR in the progress towards realising
region our energy efficiency goals by
obtaining our group-wide ISO
50001 certification in energy
Project will sequester 800,000 management. The energy
tonnes of CO2 annually and
The UAE's delegation to COP21
management system (EnMS) will
liberate natural gas for power ADNOC’s climate change team ensure that energy efficiency is
generation was part of the UAE’s delegation built into the very fabric of our
envoy to the 21st session of the business and operations, from
Project will include a compression Conference of the Parties (COP21) resource-efficient production all
facility and a 45 km pipeline to the United Nations Framework the way to the transportation
Convention on Climate Change and use of our products. It will
Construction contract for the (UNFCCC), which took place in also help us make a significant
facility is worth AED 450 million Paris in December 2015 contribution towards resource and
climate protection.
Managing our environmental performance
Our commitment to operating in an environmentally responsible manner is anchored in

our HSE Policy and ADNOC Codes of Practice Manual, which require our facilities to be
designed, operated and managed with the goal of protecting the environment and preventing
environmental incidents.
Hydrocarbon spills
Non-GHG emissions and air quality monitoring Protection Facility (known as BeAAT) in Ruwais. Operated by
TAKREER, BeAAT offers a range of treatment processes in 20 incidents of which 3 were
ADNOC established an Air Quality Monitoring System (AQMS)
a single site. Our first waste management priority is to avoid significant (>100 boe)
in 2008.The system comprises of a network of thirteen
its generation, and then to reuse or recycle waste wherever
monitoring stations (ten fixed and three mobile) for monitoring
possible. ADNOC also implements a life cycle approach
the ambient air quality in the vicinity of our facilities. Nearly 100% recovery achieved
towards waste management that facilitates an optimisation of
for significant spills
The AQMS enables ambient air quality and meteorological costs, resources and environmental and social benefits.
data from all monitoring stations to be sent on a real-time
basis, including providing a simulation tool to develop and Minimal environmental impact
Spill prevention and response
implement an air quality management program.
When assessing our potential impacts to water or land, spill
prevention is a top priority. This is addressed by outlining Non-hydrocarbon spills
Water management procedures for the proper inspection and maintenance of
In 2015, approximately 5.3 billion m3 were withdrawn to equipment, providing comprehensive training materials for 2 spill incidents involving chemical
support our operations. Over 99% of this water is extracted our operators, emphasizing regular performance of tests and solvents
from the sea and used for cooling purposes, and is then drills, and allowing us to maintain a relentless focus on safety
discharged back to the sea after undergoing treatment to (see page 22 for more information on ADNOC’s emergency Minimal environmental impact
ensure accordance with ADNOC’s discharge limits. The net response and crisis management approach).
water consumption at our operations was 78 million m3,
representing a continued decline since 2011.
We are committed to minimizing the impacts of our water
withdrawals, consumption and discharges. We use alternative
water sources where appropriate and seek opportunities to
reduce, reuse and recycle water. We assess actual costs,
quality and availability, as well as potential trade-offs, such
as varied operational efficiencies, increased energy use or
the consequences of producing more concentrated waste
streams.
Across our operations, there is one sensitive water body
which may be affected by the withdrawal of water. This is the
Liwa groundwater aquifer (located immediately north of Liwa,
and covering a surface area of about 1,800 km2), from which
ADCO withdraws water to perform their operations in the Bu
Hasa and Asab fields. To conserve the fresh water resources,
water supply wells are drilled in the brackish zone of the
reservoir where the salinity exceeds 15,000 ppm.
Produced water
Produced water across our operations is re-injected into deep
wells. In 2015, this amounted to 25.3 million m3. Treatment
is practiced where necessary to reduce oil content to
permissible levels prior to re-injection.
Waste management
In 2015, a total 32,908 metric tonnes of hazardous waste and
41,288 metric tonnes of non-hazardous waste were generated
from our operations.
To ensure the centralised management of ADNOC’s hazardous
waste, ADNOC established the Central Environment
Society
Highlights
• 3 ADNOC academic As the national oil company of Abu Dhabi, ADNOC has an
institutes dedicated to
important role to play in driving the creation of long term,
providing world class
sustainable in-country value. We accomplish this in several
education and research
facilities ways that include: investing in education and research; job
creation; advancing local talent and the local supply chain;
• 4,285 active scholarships
developing critical infrastructure to support our economy’s
• 1,241 graduates from the growth and development; and the sharing of knowledge, best
Petroleum Institute practice and technology across the local oil and gas industry.
• 79% executive and senior
The broad and long-lasting socio-economic benefits generated
management positions
by our operations are never delivered at the expense of our
occupied by UAE nationals
commitment towards being a responsible corporate citizen.
• AED 95 million in We strive to demonstrate this commitment through practical
sponsorships and
actions undertaken in partnership with our stakeholders to
donations within the
ensure that our operations are aligned with their interests and
Emirate of Abu Dhabi
that we continue to build mutually beneficial relationships. Our
aim is to create opportunities that positively enhance the lives
of people who work for us and live near our operations, as well
as the society overall.
Building a knowledge-based economy

Innovation, research, science and technology are the pillars of a knowledge-based,
highly productive and competitive UAE economy. This principle is embedded
in ADNOC’s efforts to establish a world-class education and energy research
ecosystem that harnesses the talent and creativity of Emiratis and supports the
needs of the expansion and development projects in the oil and gas sector.
Our investments in education and academia have therefore grown year on year,
with our growing family of academic institutes that include the Petroleum Institute
(PI), ADNOC Technical Institute (ATI) and our ADNOC Schools which are established
across four locations in the Emirate of Abu Dhabi.
Funds towards ADNOC's academic institutes
1,200
1,000 388.8
447.4
800
AED million
348.2
198.8
600
493.0 ADNOC Schools

400 212.4 166.7
150.3
143.0 289.6 ATI
200 123.5 241.0
113.0 110.5
PI
0
2011 2012 2013 2014 2015
Building on its foundations as one of the world’s biggest oil ADNOC Technical Institute ADNOC Scholarship Programme ADNOC Achievers’ Oasis Programme
companies, to establish a pioneering academic, research,
The ATI produces entry-level technicians in the oil and gas We established our Scholarship Programme in 1974, Established in 2002, the Achievers' Oasis Programme is
development and innovation hub in Abu Dhabi is a logical
industry and provides an alternative to conventional academic sponsoring talented UAE nationals to pursue their post- an innovative summer Programme which aims to motivate
extension of ADNOC’s existing capabilities that will stand
education for male UAE nationals. secondary education in reputable academic institutions young UAE nationals to pursue studies in the fields of
proudly alongside the UAE’s declared ambition to put the first
locally and abroad, and to specialise in the various technical engineering, exploration and production and management
Arab probe on Mars by 2021. The ADNOC Technical Institute was established in 1978
disciplines essential to the oil and gas industry. engineering. Graduates from the AOP often go on to join
as the first vocational training institute in Abu Dhabi to
the Petroleum Institute, enrol in local universities or are
The Petroleum Institute University and Research offer programmes that meet the needs of ADNOC and its There are 5,299 active scholarships across undergraduate
awarded scholarships abroad to pursue their university
Group Companies for skilled national manpower. Since its and postgraduate programmes around the world, with
Centre studies.
establishment, the ATI has trained more than 3,500 technical 1,056 scholarships awarded in 2015 alone.
The PI has graduated over 1,400 engineers staff in a range of disciplines. The Group Companies assist In 2015, a total of 1,696 students participated in the AOP
since its establishment in 2001. the ATI by providing job instructional training opportunities for programme across Abu Dhabi, Al Ain and the Western
trainees in relevant areas within each company’s operational Region.
The Petroleum Institute University and Research Center
sites.
(PI) was established with a goal of becoming a world-class
Number of new scholaships awarded annually AOP Participants
institution in both engineering education and energy industry
research. PI currently has more than 2,000 undergraduate and The ADNOC Schools 2,500 2,500
graduate students, over 200 faculty members, and has quickly
ADNOC Schools have one branch in the capital city of Abu
become a leading teaching and research institution in the 2032
Dhabi and three branches in the Western Region (Ruwais, 2,000 1823 2,000
% of total enrollements
Middle East region. 287
Madinat Zayed and Ghayathi), across which there are over 216 216
230 778 168
6,000 students enrolled. 1,500 1,500
656
706 666
572
Enrollment of female and emirati students in the PI
The ADNOC Schools were founded in 2008 by ADNOC with
1,000 778 1,000
the goal to provide a challenging and rigorous academic 963 949 984 956
100 866
curriculum to highly qualified Emirati and expatriate students,
500 526 500
preparing them to join prestigious universities worldwide. 401
80
% of total enrollements
255 278
48 90 181
0 0
69.9 71.3 69.9 73.0
Driving research and development
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
60
48.3 51.1 Over the last decade, ADNOC has moved swiftly to build the
40 45.5 Domestic study Study abroad Abu Dhabi Al Ain Western Region
foundations for a world-class energy research ecosystem in
36.8
32.6 32.8 Abu Dhabi, and allocated significant funding towards this that
20
has grown year-on-year.
0 At the core of this research strategy is the delivery of a ADNOC’s research, development and innovation centres cover the upstream and downstream aspects of our petroleum
roadmap for exploiting our oil reservoirs to levels far beyond
2011
2012
2013
2014
2015
value chain
current levels to reach 70% recovery rates.
Inaugurated in 2015, the new high-tech
Female students Emirati students
facility provides expertise on polymer
development and application technology to
enhance petrochemical products of pipe, film
Borouge and molding applications, and improve their
A world class research Innovation performance.
center focused on Centre
enhanced oil recovery The TRC supports TAKREER’s
(EOR) in carbonate core refining activities by
reservoirs, as well as TAKREER overseeing process modeling and
downstream studies Research product development, as well as
on material sciences Centre assist in technology transfer and
to address current and Petroleum human resources development in
emerging challenges Institute collaboration with other Institutes
in gas processing and Research and Universities.
treatment. Centre
ADNOC
Abu Dhabi Solar Challenge ADNOC R&D was established to stimulate innovation R&D Hub
across the ADNOC Group Companies: ADCO, ADGAS,
PI’s Solar Car Team participated in the first ever solar car race to take place in the UAE. The event, sponsored by ADMA-OPCO, Al Hosn Gas, GASCO and ZADCO; with the
ADNOC, took place over three days and drew 20 universities from around the world to compete in a 1,200 km aim of increasing hydrocarbon recovery and profitability
race. The PI finished in second place overall, with a two and half minute offset from the winning team: University from our existing assets. ADNOC R&D’s portfolio includes
of Michigan (UM) Solar. The PI team also received the Best Qualifying Lap Timing and the Spirit of the Event the Gas Research Centre, which is established in the PI to
Awards, as well as the prestigious Shell Innovation Award. address current and emerging gas challenges.
Local economic growth and development Supporting the economic development of the
Western Region
ADNOC, together with the wider energy sector, provides fundamental support in deepening ADNOC and our Group Companies have a permanent
and broadening the domestic industrial base, and driving the country’s broader socio-economic presence in the Western Region and are committed
development. Our projects help create jobs and develop new skill sets among the local to working with one of our key stakeholders, the
Western Region Development Council (WRDC), and
population, while at the same establishing key infrastructure that benefits the wider economy. leading the Western Region towards becoming a model
of sustainable economic and social development.
To achieve this, our strategy focuses on providing
Developing the local economy and a remote desert site to a fully-integrated resources, vacancies and training opportunities to UAE
infrastructure in the places we community and modern industrial city. Ruwais Housing Complex nationals of the Western Region. The region’s companies
work are also given priority to provide contracting and supply
Distributed over 15 km2 services and to execute projects within their fields of
The city of Ruwais is one of ADNOC’s Developing local content
specialization.
success stories. It represents a multi- ADNOC’s target is to achieve 75% 24,000 residents across 56
million-dollar investment and serves as Emiratization across core ADNOC and nationalities The ADNOC Group also proudly sponsors several
a major contributor to the local economy Group company positions by the end of high profile annual events that include the Liwa Dates
of the Western Region and the UAE 2017. 8 schools which provide elementary Festival, which showcases our nation’s valued fruit and
overall. to secondary education encourages more sustainable cultivation and irrigation
The need to create jobs and to develop
practices; the Al Dhafra Camel Festival, a unique festival
ADNOC’s downstream oil and gas a national workforce with the right
1 hospital and medical centre with the world’s only camel beauty contest; and the Al
facilities are based in the Ruwais capabilities and skill set to address
(administered by ADNOC’s Medical Gharbia Falconry Festival, which provides an opportunity
Industrial Complex (RIC), which is the oil industry’s technical challenges
Services Unit) for falconers, experts and researchers to enjoy the
located in the Western Region of Abu and complexities was recognized in
celebrated art of falconry.
Dhabi, 240 kilometres southwest of 1999, when ADNOC’s Group Nationals
the main city. They include Borouge's Recruitment Department (GNRD) was 1 shopping mall with over 261 The festivals attract nationals, expatriates and tourists
polyolefins plant, TAKREER’s Ruwais established. The role of the GNRD outlets with the aim of celebrating the UAE’s longstanding
Refinery, GASCO’s NGL fractionation today is to oversee and facilitate the bedouin culture, reviving the role of poetry and its
plant, FERTIL’s fertilizer plant, as well as government’s ‘Emiratization’ efforts. 4 recreation centres and clubs (two influence on UAE culture, introducing and preserving the
a marine terminal and a sulphur handling of which are exclusively for women) authentic camel breeds of Asayil and Majaheem, and
ADNOC’s 2017 Emiratization plan is
terminal. ultimately activating the region’s economic growth.
passed down to each of the Group Public services including stationed
To meet the rising demand for Companies in the form of annual plans. offices for civil defence, police,
residential services to support the RIC’s Each company prepares the annual Emirates Post, sharia court and
employees and their families, ADNOC intake plan at the beginning of the year transportation Developing the local supply chain labour and other amenities. ADNOC impacts in order to maximise the long-
established the Ruwais Housing and the progress on recruitment is
and our procurement practices defines a local supplier as a provider term sustainability and benefits of our
Complex (RHC) in 1980 and gradually monitored on a monthly, quarterly and Other community services of materials, products and services efforts. Our sponsorships and donations
developed the local services and annual basis. Approximately 79% of the procurement
including mosques, banks, that is based in the UAE or has a local towards important community events
infrastructure, transforming Ruwais from budget across the ADNOC Group
travel agencies, public parks and sponsor in the UAE. The sponsorship and causes (excluding academic
spaces etc. Companies was spent on local arrangement often requires the supplier scholarships) in 2015 amounted to AED
suppliers in 2015; this is equivalent to to share a percentage of the contract 95 million. They include contributions to
approximately AED 47 billion. with their sponsor, ensuring that at least the Ministry of Labour and Social Affairs,
Our goal is to build and maintain a some of the value of any contract is Children with Special Needs Centre, the
qualified, competitive and sustainable realised locally. Red Crescent, hospitals, educational
supply chain. Due to the scale of our organisations such as Zayed University,
Population of RHC Higher Colleges of Technology, and
operations, we have the capacity to Strategically investing in what
help local businesses grow and to Abu Dhabi Educational Zone as well as
UAE Nationals
matters most
foster the long-term development of cultural and sports clubs.
23% Arabs our suppliers. Our local procurement Our strategic community investments
Additionally, ADNOC and our Group
23% plans enhance the opportunity for complement our business and reflect
Companies develop infrastructure
economic participation of locally based our economic and social interests and
that provides local communities and
small-to-medium enterprises in our goals. We focus a significant portion
businesses with benefits such as roads,
businesses and we aim to bridge the of our spending on education, where
Ruwais Housing Complex hospitals, mosques and schools. Our
gap between their capacity and our funding of our academic institutes and
indirect impacts are difficult to quantify
The RHC was strategically supply requirements. programmes in 2015 exceeded AED 1
because of their wide-ranging scale
planned and developed to meet billion.
Whilst many of our larger contracts and diversity. ADNOC also provides
the residential needs of our We supplement our corporate- humanitarian aid and relief assistance
are granted to leading engineering
employees and their families. led initiatives with philanthropic towards international causes around the
companies from around the world,
Non-Arabs programmes as well, and continue world.
these companies often use local
54% to improve our understanding of our
suppliers for the provision of services,
Managing our community impacts Senior representatives from ADNOC as

well as CEOs from across the Group
The procedure will set the objectives
and means for a proactive stakeholder
Companies participated in discussing engagement approach and establish a Campaign Activities
the issues raised during these sessions. formal means through which potential
The success and sustainability of our operations go hand in hand with our ability to manage grievances can be raised. Environment Essay Competition
An impact and recommendations report
socioeconomic impacts and address the interests of our stakeholders and communities. was prepared to help better understand In order to maximise the long-term The winner, Ms. Aisha Al Hosani
Proactively identifying, avoiding and managing potential impacts, while also enhancing and address the community’s benefits of our engagement efforts, from the Higher College of
community benefits, is integral to developing long-term positive relationships and opportunities. requirements. The process will also we are designing more robust impact Technology, shared her essay
help inform the development of a measurement and evaluation plans writing talents on climate change
centralised and group-wide stakeholder and incorporating our findings in future in the opening ceremony on the
engagement procedure which will be programs and campaigns, both in first day of the exhibition
Dialogue with our key stakeholders Working with the community of Al Gharbia
undertaken by ADNOC in co-ordination Madinat Zayed and elsewhere across Al
Our stakeholders’ expectations Our diverse and large scale energy projects in Al Gharbia are Innovation Competition
with our major stakeholder groups. Gharbia, as planned in 2016.
serve as the foundation for our driving forces for the region’s socio-economic development, A series of innovative model
commitment to operate in a manner whose citizens are amongst ADNOC’s most valued designs were constructed by
that is both environmentally and socially stakeholders. students from universities in
responsible. colleges on environmental issues
In 2015, ADNOC and our Group Companies undertook
water desalination, hazardous
ADNOC prioritizes stakeholder our first group-wide stakeholder engagement campaign in
waste handling and sustainable
groups that work for us, including Madinat Zayed. The campaign set a precedent for ADNOC’s
cultivation
our people and contractors, as well engagement practices in the region, by collaborating
as the communities that live near and engaging with a spectrum of parties and regional Art from Recycled Waste
our operations. These include the representatives individually and collectively in a traditional Competition
communities of Ruwais, Madinat setting that enabled the effective sharing of knowledge and
ADNOC partnered with ‘Abu Dhabi
Zayed, Liwa and Shuweihat – which viewpoints. These include members of government and public
Art Hub’, a local artist community
are collectively located in the Western bodies, members of the general public, and the student
that specialises in visual art
Region of Abu Dhabi, also known as Al community across schools, colleges and universities.
projects, to conduct a series of
Gharbia.
The goal of the campaign was to raise awareness on ADNOC’s workshops in secondary schools
As part of any proposed project activity, current and future operations in Al Gharbia; our HSE and crisis on recycling waste to art
we seek to engage with stakeholders management and emergency response procedures; and
on a regular basis to share information ADNOC’s group-wide socioeconomic development plans and Drawing Competition
and identify the potential impacts of opportunities in the region. Primary school students were
our projects and the ways to eliminate, engaged on the basic principles of
Under the principal theme of 'we care for our community’, we
reduce or remedy those impacts. We sustainability and participated in a
drew on our group-wide expertise to develop tailored activities
then integrate the results of these drawing competition to encourage
that helped support our goals. The three-month campaign
discussions into our project decision- the visualisation and application
concluded with an exhibition that brought all parties together
making process. Early consultation of sustainability in their daily
in a central location in Madinat Zayed, to showcase the
allows us to avert or reduce our impact endeavours
winning projects and the results achieved by the campaign,
on communities, prevent project
and to engage in open dialogue on issues of potential concern Exhibition
disruptions, avoid delays, reduce costs
to the community, particularly those related to ADNOC’s
and prevent the escalation of issues. Information booths across
operations in Al Gharbia.
Our operating companies implement medical, crisis management, HSE
The dialogue sessions were conducted in a traditional and HR functions were organised
individual and collective practices
‘Barzah’ setting (with one day designated for men and the to educate visitors on ADNOC’s
towards community engagement, in
other exclusively for women), and covered topics such as Al Gharbia Stakeholder efforts across these areas. A tour
recognition of the shared impacts that
HSE and emergency response procedures, local hiring plans Engagement Campaign of ADNOC’s newly installed air
some of our operations have (such as
and processes, potential plans to expand fuelling facilities to quality monitoring station was
Ruwais, for example, where several
better meet the community’s energy needs, and opportunities provided, in addition to training
Group Companies operate jointly in the
for collaboration with local product and service providers. on first aid and firefighting to
Ruwais Industrial Complex).
encourage HSE practices at
Government and Local Community
home.
Location relative to our operations Public Entities Community
Civil Defense, Police, representatives and
Western Region members of the Barzah
Shuweihat Ruwais Liwa Madinat Zayed Develoment general public A traditional tent-style setting
4 km from a new sour gas 10 km from Borouge and Fertil’s 15 km from the Shah 20 km from ADCO’s production Council
well being operated by petrochemical facilities and Gas Field operated by facility and GASCO’s processing Academia
was arranged to engage in open
ADNOC TAKREER’s refining operations, Al Hosn Gas facilities in Bab and Habshan Primary and dialogue with members of the
collectively based in the Ruwais respectively secondary general public, which commenced
Industrial Complex schools, colleges and with a traditional poetry reading
university
4 10 15 20 and concluded with a communal
km km km km donor.
HSE AWARD
Highlights
• 19 award cycles held Pursuing and sustaining excellence in HSE performance
since the ADNOC HSE requires continuous improvement and unremitting focus.
Award programme was Leaders at every level of our organisation must continue to
first created in 1997 to demonstrate their commitment towards establishing a high
encourage operational performance HSE culture with distinctive core capabilities and
excellence best-in-class standards and systems.
• 240 submissions received
across eligible members
Recognising and appreciating our group-wide efforts
in 2015 towards operational excellence is an important component
of reinforcing ADNOC’s commitment towards sustainable
• 4 award groups to
business practices. The ADNOC HSE Award programme was
recognise achievements
therefore established to recognize and reward outstanding
in project execution,
corporate performance achievements, promote knowledge sharing of best practices,
and partnerships and foster an atmosphere of friendly competition amongst the
ADNOC Group Companies and our Independent Operators in
their quest for sustainable development.
Recognizing outstanding achievements

The ADNOC HSE Award program was created in 1997 and has since evolved
substantially. Submissions were initially accepted under one category only: HSE
Performance. Today the Award has expanded to include four main groups:
Projects - awarded across five categories: Innovation, Safety, Occupational

Health, Environment and Sustainability.
Corporate Performance and Leadership - awarded across two categories:

HSE Performance and HSE Champion.
Special Recognition - awarded to companies who submitted high quality

projects that scored within the top five in their category.
Group Company and Contractor Partnerships - awarded to the top two

contractors and their respective Group Company for an outstanding partnership
in HSE implementation.
HSE Award Submissions
Environment
15 12
40 32
35 Occupational Health
38
21 Safety
2011 21
2015 Innovation
60 Sustainability
42
80
61 HSE Performance
and Leadership
217 submissions 240 submissions

Projects
Innovation Environment
Winner - ZADCO Winner - TAKREER
Chemical Blend Breakers: An Innovative, Reduce Waste by Reuse of Calibration
Safe and Environmental Product Saves Gas
Group photo of ADNOC HSE Award winning teams at the award ceremony on 18th May, 2016
Costs
Runner Up - ADMA-OPCO
Runner Up - ADNOC Distribution Small Step Change in 'PROCESS', Big
ADNOC Intelligent Service Stations Gains in Emission Reduction
Safety Sustainability
Winner - BOROUGE Winner - ADNATCO & NGSCO

My Idea! – Employee Safety Project ASSURE: Advanced Systematic
Improvement Suggestion Scheme Sustainability Reporting
Occupational
Runner Up - NDC Runner Up - GASCO
Safer Jack up Preloading Eliminates
Health Paradigm Shift – Sustainable Waste
Punch through Risks: Protecting Lives, Management
Assets and Environment Winner - ADGAS
Hazard Controlled, Employees Protected
Runner Up - AL HOSN GAS
Quantitative Health Risk Assessment: A
tool to drive worker welfare
Corporate Performance and Leadership Special Recognition

ADNOC - Medical Services Unit
ADCO
TOTAL - ABK
HSE Champion HSE Performance
Mr. Ateeq Belal Al Qemzi ADNATCO & NGSCO

Partnership Awards
SVP – Terminal Pipelines
Operation, ADCO A.Hak Industrial Services Middle East
LLC through ADMA-OPCO
TWMA Middle East Ltd. through
ESNAAD
Acronyms and
abbreviations
ADAA Abu Dhabi Accountability Authority CICPA Critical Infrastructure and Coastal Protection IPIC International Petroleum Investment Company OBM Oil Based Mud
Authority
ADIA Abu Dhabi Investment Authority IUCN International Union for Conservation of Nature O&G Oil and Gas
CO Carbon Monoxide
ADIC Abu Dhabi Investment Council KPI Key Performance Indicator ODS Ozone Depleting Substance
CO2 Carbon Dioxide
ADNOC Abu Dhabi National Oil Company km Kilometre OHRA Occupational Health Risk Assessment
CO2e Carbon Dioxide Equivalent
ADRPBF Abu Dhabi Retirement Pensions and Benefits km2 Square kilometre OSRC Oil Spill Response Centre
Fund CoP Code of Practice (ADNOC)
kWh Kilowatt hour PI Petroleum Institute
ADWEA Abu Dhabi Water and Electricity Authority COP Conference of Parties (UNFCC)
LNG Liquefied Natural Gas ppm Parts per million
AED Arab Emirates Dirham CPU Civil Projects Unit
LTI Lost Time Incident RAA Remote Area Allowance
AGHSESC ADNOC Group HSE Steering Committee CSR Corporate Social Responsibility
LTIF Lost Time Incident Frequency Rate R&D Research & Development
ALARP As Low as Reasonably Practicable E&P Exploration and Production
m3
Cubic metre RHC Ruwais Housing Complex
AOP Achievers Oasis Programme EOR Enhanced Oil Recovery
Masdar Abu Dhabi Future Energy Company RWDC Restricted Work Day Case
API American Petroleum Institute FAR Fatal Accident Rate
MMSCF Million Standard Cubic Feet SAS Sahil, Asab and Shah Fields
AQMS Air Quality Management System G3.1 Generation 3.1 (GRI indicators)
MMSCFD Million Standard Cubic Feet per Day SO2 Sulphur Dioxide
ATI ADNOC Technical Institute GHG Greenhouse Gas
MSBPD Million Standard Barrels per Day SOx Sulphur Oxides
BAP Biodiversity Action Plan GNRD Group Nationals Recruitment Department
MSU Medical Services Unit SPC Supreme Petroleum Council
Bbl Barrel GRI Global Reporting Initiative
MSDS Material Safety Data Sheet SRU Sulphur Recovery Unit
BeAAT Central Environment Protection Facility HR Human Resources
MWh Megawatt hour UAE United Arab Emirates
BMI Body Mass Index HSE Health, Safety and Environment
NAF Non-aqueous Fluid UNFCC United Nations Framework Convention on
BMP Best Management Practice HSEIA Health, Safety and Environment Impact Climate Change
NCEMA National Emergency Crisis and Disaster
Assessment
boe Barrel of oil equivalent Management Authority UZ Upper Zakum
HSEMS Health, Safety and Environment Management
BPD Barrels per day NGL Natural Gas Liquid VOC Volatile Organic Compound
System
CAMS Competence Assurance Management System NGV Natural Gas for Vehicles WBM Water Based Mud
IGD Integrated Gas Development
CCUS Carbon Capture, Usage and Storage NOx Nitrogen Oxides WRDC Western Region Development Council
ILO International Labour Organisation
CFC Chlorofluorocarbon NORM Natural Occurring Radioactive Material
IOGP International Oil and Gas Producers (Association)
CNG Compressed Natural Gas NRC National Recruitment Committee
IPCC Intergovernmental Panel for Climate Change
Our conclusions Our independence

Independent Assurance Statement
Based on the scope of our review, our conclusions are This is the second year that Ernst & Young (Middle
outlined below: East) has provided independent assurance services in
ADNOC’s 2015 Sustainability Report (the Report) has relation to ADNOC’s Sustainability Report. We have
What we did to form our conclusions Completeness and accuracy of performance provided no other services relating to ADNOC’s
been prepared by the management of ADNOC, which
is responsible for the collection and presentation of We have planned and performed the assurance information approach to sustainability reporting.
the Report’s information. Our responsibility, in engagement in accordance with the International How plausible are the statements and claims Our assurance team
accordance with ADNOC’s management instructions, Federation of Accountants’ International Standard for supporting indicators identified under the scope of
is to carry out a ‘limited level’ assurance engagement Assurance Engagements other than Audits or Reviews work? Our assurance team has been drawn from our Middle
on specific aspects of the Report (as defined under the of Historical Financial Information (ISAE 3000). East Clean Energy and Sustainability practice, which
scope of work below). We do not accept or assume any • We have reviewed information or explanation on undertakes similar assurance engagements with a
In order to form our conclusions we undertook the selected statements on ADNOC’s sustainability
responsibility for any other purpose or to any other number of significant international businesses.
steps outlined below: activities presented in the report and we are not
person or organization. Any reliance any such third
party may place on the Report is entirely at its own 1. Interviewed a selection of executives and senior aware of any misstatements in the assertions
risk. managers at ADNOC and 12 Group Companies made.
headquarters in Abu Dhabi to understand the How complete and accurate are the disclosures
Our scope of work current status of social, ethical, environmental, covered under the scope of work in the report?
The scope of our assurance covers: health and safety activities, as well as the EY
progress made on these fronts during the • We are not aware of any material reporting units Abu Dhabi, United Arab Emirates
1. Data and information relating to ADNOC’s reporting period. The 12 selected Group that have been excluded from the Group
sustainability performance, namely the following Companies included ADCO, ADGAS, ADMA-OPCO, Company-level disclosures relating to the topics
10 performance indicators, as defined by the ADNOC Distribution, Al HOSN GAS ,Borouge, considered under the scope of work as presented
Global Reporting Initiative (GRI) G3.1 for the FERTIL, GASCO, NDC, TAKREER, TOTAL ABK, in the report.
period of 1 January 2015 to 31 December 2015: ZADCO.
• Nothing has come to our attention that causes us
Environment 2. Reviewed a selection of Group Company-level to believe that the disclosure relating to the above
• EN3: Direct energy consumption by primary energy documents relating to social, ethical, topics has not been collated properly by ADNOC.
source environmental and health and safety aspects,
which reflects ADNOC’s overall performance in • We are not aware of any errors that would
• EN5: Energy saved due to conservation and
these areas, to understand the progress made materially affect the disclosures related to the
efficiency improvement above topics.
across the organization and to test the coverage
• EN8: Total water withdrawal by source of topics within the report. Observations and areas for improvement
• EN16: Total direct and indirect greenhouse gas 3. Reviewed data samples and processes relating to
emissions by weight Our observations and areas for improvement will be
the indicators identified under the scope of work,
raised in a report to ADNOC’s management. Selected
• OG6: Volume of flared and vented hydrocarbon to test whether they had been collected,
observations are provided below. These observations
consolidated and reported appropriately at
Social do not affect our conclusions on the report, as set out
ADNOC level.
earlier in this statement.
• LA1: Total workforce by employment, type, 4. Reviewed and challenged supporting evidence for
employment contract, and region, broken down by
a selection of two to five indicators for each of the Observations
gender
selected Group Companies, from the list under the • We have seen a reduction in errors materially
• LA7: Rates of injury, lost days and total number of scope of work. affecting disclosures due to clearer guidelines in
work-related fatalities, except occupational
the ADNOC Code of Practice (CoP) on
diseases and absenteeism by region and by gender Level of assurance
sustainability reporting and improved
• LA10: Average hours of training per year per Our evidence gathering procedures were designed to understanding of the reporting process.
employee by gender and by employee category obtain a ‘limited level’ of assurance (as defined by
ISAE 3000) for the purpose of devising our
• ADNOC organized a group wide GRI G4 training
Economic course to help build sustainability reporting
conclusions. The extent of evidence gathering
• EC7: Procedures for local hiring and proportion of procedures performed is less than that of a reasonable capacities in the Group Companies reporting
senior management hired from the local
assurance engagement (such as a financial audit) and teams. This process increased awareness on
community at significant locations of operation leading practices in sustainability reporting and
therefore a lower level of assurance is provided for the
• EC8: Development and impact of infrastructure aspects described under the scope of work. assurance across the Group Companies.
investments and services provided primarily for
public benefit through commercial, in-kind, or The limitations of our review Areas for improvement
pro-bono engagement
Our work did not include physical inspections of any • ADNOC could consider developing the materiality
2. The Company’s internal processes and controls operating assets and we did not verify the accuracy of analysis by adopting the GRI G4 materiality
relating to the collection and collation of the source data. Our review was limited to the process and incorporating external stakeholder
above sustainability performance indicators. headquarter offices of ADNOC and the selected Group views to delineate the most material issues for the
Companies in Abu Dhabi. Our assurance activities company.
relating to energy consumption, environmental • We recommend integrating key sustainability
emissions, and GHG emissions assessed the collation indicators into a sustainability data management
and accuracy of data conversion only. software that could streamline data collection and
reduce the risk of misstatements.
About our reporting Report contributors

Sustainability reporting represents a valuable tool in helping drive better business performance. The reporting entities that have participated in the provision of the ADNOC 2015 Sustainability
This report covers the major issues that are of significance to ADNOC and its Group Companies, Report content and/or in the report’s internal verification include the ADNOC Directorates, the
and is guided by a content selection process as described below. ADNOC Group Companies, the Independent Operators, and the ADNOC Academic and Training
Institutes.
Content selection process • ADNOC Headquarter Office: Performance is included in all Group Companies
sections of this report.
We have continued to develop and formalise our approach to
determining the content of our reporting. In order to identify • Group Companies: Performance is included in all sections
and prioritise the issues on which we need to report we of this report, with the exception of Al Hosn Gas, whose
considered various inputs. These were: performance has been excluded from the ‘Environment’
section of this report as 2015 was the first year of production
• Stakeholder concerns: we have considered the issues of
and the company did not reach steady-state operation during
importance to our stakeholders that have arisen in our
this period. Their (Al Hosn Gas) performance will be included
regular interaction with them.
in full in our 2016 report.
• High-profile issues raised in broader contexts, such as
• Independent Operators: Performance is included in the
national development plans and strategies, or topics
‘People’ section (in full), ‘Environment’ section (in full) and
highlighted by the media or by non-governmental
‘Society’ section (in part) of this report.
organisations.
• Academic Institutes: Performance is included in the ‘Society’
• Issues raised in internal discussions among management
section of this report only, unless otherwise stated.
and employees about the most important developments
in the course of the reporting period. This includes internal
business developments and priorities, as well as issues Material issues for 2015
arising from ADNOC’s day-to-day interaction with external The following issues, shown in alphabetical order, reflect the
stakeholders. key material topics identified. Each issue contains a number of
• GRI guidance, which sets out potentially material ‘aspects’ dimensions which we seek to cover in our reporting, both in
and indicators to report against as well as guidance on how print and online.
to identify, prioritise and validate relevant topics. • Economic contribution
We develop a consolidated list of issues from the inputs • Social investment and community engagement
and then use a materiality matrix to assess how each issue
features in our reporting. In line with GRI guidance, we • Greenhouse gas emissions and flaring
have also considered whether the impact of an issues is felt • Personal and process safety Al Dhafra Petroleum Al Yasat Petroleum
primarily within the organisation, outside, or both.
• Workforce health Operations Company Ltd. Operations Company Ltd.
Reporting guidelines and standards • Workforce training and development

ADNOC is a registered Organisational Stakeholder of the • Operating efficiency
Global Reporting Initiative (GRI). Our reporting is prepared
• Recruitment and Emiratization
Academic & Training Institutes
in accordance with the Global Reporting Initiative GRI G3.1
Sustainability Reporting Guidelines, including the Oil and Gas
Sector Supplement. Several aspects of this Report have been
externally assured; a copy of the Assurance Statement is
available on page 54.
Report boundary and scope

This report pertains to ADNOC’s performance in the 2015
calendar year, and covers our operations in the United Arab
Emirates and elsewhere where specified. Where limitations Independent Operators
have been identified in the scope of our data, it has been
stated in the report.
The following should be noted about the performance data
gathered from the sustainability reporting units that have
contributed towards the content of this report:
Please direct any questions regarding this publication to:
Health, Safety and Environment Unit
Abu Dhabi National Oil Company
P.O. Box 898
Abu Dhabi, United Arab Emirates
T: +971 (0)2 6024740
F: +971 (0)2 6668089
E-mail: [email protected]
The contents of this report can be reproduced or re-printed provided that
ADNOC is credited.

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ADNOC GROUP SUSTAINABILITY REPORT 2015

TAKING INNOVATION TO NEW HEIGHTS

HH Sheikh Khalifa Bin HH Sheikh Mohammed

"The Falconer of Liwa" - courtesy of James Thomas

20 Group >3.15 Million BPD

ADNOC Organisational Structure Vision, Mission, Values & Culture

Legal & Compliance The Executive Office

Internal Audit Group Communications

(%) ADNOC share of ownership in each Group Company

ADCO GASCO AL HOSN GAS ADMA-OPCO ZADCO

Flow of products Industrial terminal for processing, storage

Products and Markets Stakeholders

Academic and training institutes

ADNOC’s Governance Structure

Executive Leadership Team

Financial governance Risk identification and mitigation

Operating framework HSE Governance Structure

ADNOC HSE Unit

In 2015, ADNOC issued the Anti-Fraud

Tiered emergency response structure

Resources and capabilities in the process of constructing a third

Keeping our people and operations safe

Managing occupational safety

Managing our occupational safety risks

Lost Time Injury Frequency (LTIF)

per million hours

Developing our people

Training and development

Biodiversity and ecosystem services

2.3 million mangrove seedlings across

1 hectare of seagrass plantation, established

184 artificial coral reef structures deployed in the

Developing the marine environment

Arabian Oryx Protected

Marawah Marine Protected Area

Engaging on climate change policy and planning Halon Phase-Out Program

Million tonnes CO2e

Million standard cubic feet per day (MMSCFD)

Completion is set for Q2 of 2016 ADNOC ISO 50001 EnMS

Project is the first time injected In 2015, we made significant

Managing our environmental performance

Our commitment to operating in an environmentally responsible manner is anchored in

Building a knowledge-based economy

Funds towards ADNOC's academic institutes

493.0 ADNOC Schools

Managing our community impacts Senior representatives from ADNOC as

Recognizing outstanding achievements

Projects - awarded across five categories: Innovation, Safety, Occupational

Corporate Performance and Leadership - awarded across two categories:

Special Recognition - awarded to companies who submitted high quality

Group Company and Contractor Partnerships - awarded to the top two

HSE Award Submissions

217 submissions 240 submissions

Winner - BOROUGE Winner - ADNATCO & NGSCO

Corporate Performance and Leadership Special Recognition

HSE Champion HSE Performance

Mr. Ateeq Belal Al Qemzi ADNATCO & NGSCO

Our conclusions Our independence

About our reporting Report contributors