Risk Management

As an oil and gas Exploration and Production (E&P) company Karoon recognises the inherent operational and commercial risks in the oil and gas industry.  Karoon has established a robust risk management framework that is implemented, reviewed and updated regularly by the Risk Management Team.  This team is responsible for maintaining the corporate Risk Register and reports to the Risk and Governance Committee of the Board.  Individual risk registers are prepared and assessed at the project level both commercially and operationally.

Health, Safety, Security and Environment (HSSE)

Karoon is committed to prioritising the safety of our people, and the people in the communities in areas where we operate, and the local environments ahead of property and assets, as described in our HSSE Policy.  Our Risk Appetite Statement further emphasises this by stating that “In relation to matters of safety, security, regulatory compliance and ethical conduct a strict and universal low risk appetite is maintained and enforced”.  We achieve this through the careful application of the Karoon Operating Management System (OMS).

The Karoon OMS includes a number of global, high level, documents as well as project specific detailed documents such as a HSSE Plan, Emergency Response Plan and Incident Management Plan, which must conform to the higher level documentation.

Karoon´s leadership takes responsibility for implementing the OMS through the primary document, the OMS Standards, applying it rigorously throughout the organisation with particular emphasis in operational areas.  Our OMS is regularly reviewed and updated to ensure we are working to the most recent standards, at or above legal and regulatory requirements, and continuing to find ways to improve the system.

In keeping with our Standards, Karoon has ensured that all environmental approvals are prepared to at least the regulatory standards and worked closely with both government authorities and local communities to ensure communities are fully engaged in the consultation process and to identify opportunities to go further than the regulations require.

We regularly consult with employees on HSSE issues, including HSSE meetings.  We have also instigated an extensive alert card program throughout operational periods to empower and encourage all employees to focus on health and safety and identify any areas for improvement.

In accordance with the Karoon OMS, HSSE Policy and Risk Management Policy a thorough risk assessment is carried out on any project before operations commence, in response to any event and as part of our auditing processes in order to ensure identified risks can be brought to “As Low As Reasonably Practicable” (ALARP).

HSSE Metrics

Through our HSSE Policy and OMS Karoon adopts a proactive approach to all aspects of HSSE.  We continually aim to minimise and mitigate risk through the education, motivation and involvement of all employees, consultants and contractors.  This approach has proved very successful, with Karoon being able to achieve the following HSSE metrics during our most recent operational drilling campaign (2014/15) in Brazil.

  • Days Away Incident Rate (DAIR) = 0
  • Total Recordable Incident Rate (TRIR) = 0.57