Sustainability Report

Horizon Oil continues to support a number of social investment programs in Papua New  Guinea. In particular, substantial financial and in-kind support is provided to two non- government organisations active in the Western Province, namely Australian Doctors  International (ADI) and Mercy Works. Both organisations are focused on improving healthcare services in the North Fly region of Western Province, where they seek to build partnerships with local communities to enhance capacity and self reliance in areas where access to basic health  care is limited or non-existent.  With Horizon Oil’s support, ADI deployed two volunteer doctors  and a nurse educator during the reporting period.  These volunteers, along with local support  staff from Catholic Health Services, conducted a number of remote area medical patrols,  treating over 2,800 patients and delivered over 120 hours of case based and group training  to rural community health workers.


For progress report (July to December 2017) on Mercy Works please click here.


This year there were again no serious injuries in any of the operations in which Horizon Oil is involved. The Company recorded Lost Time Injury Frequency Rates (LTIFR) and Total Recordable Injury Frequency Rates (TRIFR) of 0.0 and 0.0.


Horizon Oil is committed to the sustainable development of its operations.  This Sustainable Development Report is focused upon those assets for which Horizon Oil was the designated operator.  Where Horizon Oil is a non-operating joint venture partner it is assumed that sustainable development reporting is undertaken on behalf of the joint venture by the designated operator.  Horizon Oil is committed to the audit and assessment of joint venture partners operating on its behalf to ensure that activities are conducted in a manner consistent with our expectations around the sustainable development of our assets.


This report is for the financial year ending 30 June 2017.


Fig 1 Sampling environments

Figure 1: Sampling receiving environments



Fig 2 Maintaining safe sites

Figure 2: Maintaining safe sites


Horizon Oil’s philosophy towards sustainable development remains based upon the foundations of its corporate policy.  This includes the four areas that Horizon Oil regards as the pillars of its sustainable development strategy.  These include:

  • Safety & Health;
  • Security;
  • Environment; and


Each pillar is discussed in greater detail within this Sustainable Development Report.


(i)         Safety & Health


Horizon Oil is committed to the maintenance of a safe and healthy working environment for all personnel including our sub-contractors, attending vendors and visitors.  No fatalities or recordable injuries resulted from the conduct of Horizon Oil’s activities in the reporting period.


During the reporting period Horizon Oil achieved a Total Recordable Injury Frequency Rate (TRIFR) and a Lost Time Injury Frequency Rate (LTIFR) of 0.0.  Horizon Oil targets an injury rate that outperforms the average within the overall industry as reported in the Safety Performance Indicator Series published annually by OGP.  In 2017 Horizon Oil outperformed this target.  In August of 2017 Horizon Oil achieved 3 years free of recordable injuries.  The current injury-free performance period represents the longest period recordable injury free of any time in Horizon Oil’s operational history.


Year FY15 FY16 FY17
LTIFR 0.0 0.0 0.0
TRIFR 0.9 0.0 0.0
No. of Recordable Injuries 1 0 0

Table 1 – Total Recordable Injury Frequency Rate (TRIFR) for Horizon Oil


The 2017 reporting period was characterised by an ongoing reduction in the nature and scale of in-field activities conducted by the organisation as reported in the 2016 Sustainable Development Report.  Total exposure hours during the 2017 reporting period were < 5% of those experienced during previous reporting periods in its operational history.


Health Programs


Horizon Oil is committed to the health and welfare of its workforce.  During 2017 Horizon Oil maintained and extended its periodic health assessment program.  This included an extension of targeted vaccination program for employees locally sourced, working and living in both high-risk and low-risk environments.  Employee health continues to be tracked via periodic medical examination and supported by the provision of a full range of vaccinations to combat key identified health risks.  This includes preventative vaccination against common disease such as cholera, typhoid, Japanese encephalitis, polio, tetanus, influenza and hepatitis.


Horizon Oil continues to contribute to the development of capability within community health systems and services.  During 2017, Horizon Oil worked closely with local service providers to help them develop the skills and systems required for the delivery of pre-employment and periodic health assessments at levels appropriate for Horizon Oil’s current and future requirements.  This was then implemented as a component of a health extension exercise in which locally sourced casual employees in remotely located villages were provided with baseline health assessment as a component of their engagement.


During the reporting period Horizon Oil’s Port Moresby and Sydney based personnel conducted first aid training as part of the ongoing HSSE skills development program.  This complements the First Aid Training initiative undertaken in Kiunga during the previous reporting period.  The course was designed to provide remote area first response capability reflective of the remote locations and, at times, limited medical response capability that may be available.  As the vast majority of our employees in Papua New Guinea are locally-sourced and residentially-based these skills are transferred directly back into the communities.


(ii)        Security


Horizon Oil maintains a Security Policy that sets standards that detail its expectations for the protection of its personnel, its assets and the public.  Horizon Oil conducts its operations in a manner consistent with the Voluntary Principles on Security and Human Rights.  During the period no breaches of the Principles were reported.


The organisation remains committed to responding proactively to developing circumstances that may impact the personal security of its people.


Horizon Oil maintains stable working relationships with public service security providers based in Kiunga including the Royal Papua New Guinea Constabulary (RPNGC).  These relationships are effectively maintained through a shared understanding of the scope of each organisations activities and a clear delineation of their respective roles.  Horizon Oil does not directly engage the services of the RPNGC in activities to be conducted on its behalf.


(iii)       Environment


During the reporting period Horizon Oil continued to develop and refine the environmental baseline within its operational areas in support of the Environment Permit (EP) issued by the CEPA for the Elevala Development Project.


Horizon Oil also undertook a permit review and rationalisation activity in partnership with CEPA to streamline the governance and reporting process.  This is expected to deliver a 75% reduction in the number of permits required to effectively manage its operational activities while delivering a more cohesive structure for the delivery of our environmental obligations.


Horizon Oil complied with all regulatory limits and environmental permit conditions during the reporting period.


In 2017 the scope of the existing environmental monitoring program was expanded to include sites of proposed future development activity while simultaneously rationalising the program to reduce sample numbers where effective spatial and temporal data-sets have already been collected.  Ongoing baseline monitoring involves quarterly monitoring of an established network allowing assessment and recording of the presence and impact of any potential seasonal variations.  Analysis of the samples and monitoring results indicates a healthy and dynamic riverine system with no evidence of impact from historical oil and gas activities in the area.


Fly River_(18)

Figure 3: The team on an environmental monitoring run on the Fly River near Kiunga


A baseline riverbank erosion monitoring program for the impacted project area was implemented during the reporting period in response to community engagement and remains ongoing.  This work has allowed the development of an understanding of riverbank conditions and behaviour prior to project implementation.  The results reflect a highly active and mobile riverbank environment in the riverine ecosystem.



Fig 4 Measuring riverbank erosion

Figure 4: Measuring riverbank erosion



Fig 5 Effective measuring technique

Figure 5: Simple but effective measurement techniques


In the reporting period a comprehensive, periodic assessment of all sites of historic operations was undertaken.  This included assessment of environmental stability, water, soils and sediment quality at each site along with assessment of the broader receiving environments.  These results were integrated into the ongoing environmental monitoring network and baseline and indicate that no discernible or material environmental impact has resulted from the conduct of these historic operations.  As a component of these activities Horizon Oil implemented the first phase of rehabilitation and site stabilisation trials to assess various site remediation methods.  Site-based assessment of proposed remediation methods is critical to their success in remote locations and an environment which experiences, including incident rainfall in excess of 5 metres per annum.  Horizon Oil expects to implement a more comprehensive program of site rehabilitation trials in the coming reporting period in support of future planned operational and development activities.


(iv)     Community


Horizon Oil seeks to conduct its operations in a manner that is transparent, respectful of the rights of all stakeholders with whom we interact and that promotes sustainable social and economic development within our project area communities.  Horizon Oil recognises that strong relationships with host communities are essential in maintaining both a sustainable business and our social licence to operate.


Engagement with project area communities remained ongoing notwithstanding the continued reduction in the scale of Horizon Oil’s field operations in FY17.  Horizon Oil’s program of regular ‘village patrols’ and publication of a quarterly newsletter, Komuniti Nius were supplemented during the reporting period by the roll out of a number of small scale community investment programs (CIPs). These programs are designed to be participatory, with the community contributing time and resources of their own to supplement those provided by Horizon Oil.  Following the 2015/2016 El Nino event and the associated severe dry weather experienced by the region, CIP activity during FY17 included the establishment of a combined 20,000 litres of rain water storage and enhanced rainwater catchment systems at Drimdemasuk and Gasuke villages.  Improved access to fresh water supply reduces reliance on local river water for drinking and cooking, minimising exposure to water borne disease.  In keeping with Horizon Oil’s philosophy, this project was implemented with material levels of assistance from the Drimdemasuk and Gasuke village communities.  A vocational training program was delivered under Horizon Oil’s CIP to the Gusiore village community in association with the Kiunga Vocational Training Centre.  The training program aimed to enhance basic life skills and provide opportunities for the participants to develop sustainable income generating activities and increased self sufficiency.  The training program involved the donation of seven hand sewing machines, associated sewing equipment and provision of an accredited trainer and training materials.  Twenty participants successfully completed the ten day course and were awarded Certificate of Attainment by the Kiunga Vocational Training Centre.


Vocational training at Gusiore

Figure 6: Vocational training participants at Gusiore


Enhanced water supply at Gasuke

Figure 7: Enhanced water supply and catchment at Gasuke


Horizon Oil continues to support a number of social investment programs in Papua New Guinea.  In particular, substantial financial and in kind support is provided to two non-government organisations active in the Western Province, namely Australian Doctors International (ADI) and Mercy Works.  Both organisations are focused on improving healthcare services in the North Fly region of the Western Province, where they seek to build partnerships with local communities to enhance capacity and self reliance in areas where access to basic health care is limited or non-existent.  With Horizon Oil’s support, ADI deployed 2 volunteer doctors and a nurse educator in FY17.  These volunteers  and along with local support staff from Catholic Health Services conducted a number of remote area medical patrols, treating over 2,800 patients and delivered over 120 hours of case based and group  training to rural community health workers.



ADI volunteer doctor

Figure 8: an ADI volunteer doctor on a rural medical patrol




Horizon Oil is committed to the sustainable development of its operations within the communities and environments that host our activities.  The organisation regards this commitment as an integral component of an ongoing, long-term engagement with its host communities.


Horizon Oil builds its activities on a framework established by corporate policy and assesses its performance against both internal and industry standards.


The 2017 Annual Report marks the fourth submission of Horizon Oil’s Sustainability Report as an ongoing component of its corporate reporting.


The organisation remains open to feedback from its stakeholders regarding the content and structure of sustainable development reporting.

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