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BEFORE THE EPA OMV NEW ZEALAND LIMITED APPLICATION FOR MARINE DISCHARGE CONSENT TO DISCHARGE OFFSHORE PROCESSING DRAINAGE (HARMFUL SUBSTANCES FROM DECK DRAINS) IN THE MATTER of the Exclusive Economic Zone and Continental Shelf
(Environmental Effects) Act 2012 AND IN THE MATTER of a Decision-making Committee appointed to consider a
marine discharge consent application made by OMV New Zealand Limited for the discharge of trace amounts of harmful substances from deck drains in the South Taranaki Bight
__________________________________________________________
STATEMENT OF EVIDENCE OF GABRIEL SELISCHI FOR
OMV NEW ZEALAND LIMITED
OMV New Zealand Limited overview and New Zealand operations, and the EAD Programme
Dated: 30 July 2018
__________________________________________________________
__________________________________________________________
Barristers & Solicitors
J G A Winchester / H P Harwood Telephone: +64-4-499 4599 Facsimile: +64-4-472 6986 Email: [email protected] DX SX11174 P O Box 2402 Wellington
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TABLE OF CONTENTS
Executive Summary 3
Introduction 4
OMV's existing New Zealand operations 6
Governance 7
Corporate principles 7
OMV's code of conduct 9
Health, Safety, Security and Environment 10
Proposed EAD Programme 10
Economic impact from the EAD Programme 13
Appendix A – OMV New Zealand Management Structure
Appendix B – OMV's code of conduct
Appendix C - OMV New Zealand’s Proposed EAD Well Locations and
three AOI’s in the Taranaki Basin
Appendix D – Proposed Well Names, Locations and Water Depths
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EXECUTIVE SUMMARY
1. OMV Aktiengesellschaft (OMV AG) is an Austrian incorporated company
engaged in producing and marketing oil, gas, and innovative energy and
high-end petrochemical solutions. I report directly to the Executive Board
member responsible for the Upstream activity in OMV AG, located in
Vienna.
2. OMV is New Zealand’s biggest offshore exploration company with 7
offshore permits comprising of approximately 36,000 km² of permit area. In
the five Taranaki exploration permits that are the subject of this EAD
programme, OMV is in a joint venture with Mitsui and Sapura Energy.
3. To ensure OMV's values are implemented consistently across the world, the
basic principles are set out in OMV's Code of Conduct, which applies to all
employees and contractors in all business segments. The Code of Conduct
covers all core areas of sustainability management, with particular
emphasis on stakeholder relations, human rights, employees, governance
and HSSE. As a long-standing NZ offshore oil and gas operator, OMV has
an excellent track record in HSSE compliance.
4. OMV New Zealand is proposing to undertake a multi-well Exploration and
Drilling (EAD) Programme in the Taranaki Basin from 2019 to determine the
presence of hydrocarbons within a number of identified geological
structures and to investigate the production potential within the PEPs which
OMV operate. Specific to this EAD programme, OMV has permit
commitments to the NZ Government to drill a number of exploration wells
during 2019/2020 in the Taranaki basin.
5. The oil and gas sector provides an estimated 5,068 full-time-equivalent
(FTE) jobs directly within New Zealand, and the industry contributed
approximately $1.5 billion in royalties over the last four years to the New
Zealand government.
6. Although this discharge consent application is for a minor component of the
EAD Programme, I strongly believe that the overarching EAD Programme
will provide substantial economic benefits to New Zealand.
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INTRODUCTION
Qualifications and experience 7. My full name is Gabriel Selischi.
8. I am a Romanian citizen. I was born on 21 September 1967.
9. I studied engineering at the Polytechnical Institute of Bucharest. I finished
my studies in France at Ecole des Minnes de Paris, where I also graduated
with a master's degree in business and administration, delivered by the four
most prestigious schools in Paris in 1994 (Ecole des Minnes de Paris, Ecole
des Ponts, Institut des Etudes Polytiques et College des Ingenieurs).
10. I am currently employed as Senior Vice President (Australasia) for OMV
Exploration & Production GmbH (OMV UPSTREAM) based in Wellington,
and have held that position since 1 April 2016.
11. I am an executive member of the OMV New Zealand Limited (OMV NZ) Board of Directors, first appointed to the Board on 1 April 2016.
12. I am also a director of OMV Australia Pty Ltd and member of the Board of
Directors for GIC (Gas Industry Company) and the Petroleum Exploration &
Production Association of New Zealand.
13. In 2006, I joined OMV Petrom SA (the largest oil and gas producer in
Southeast Europe, and a subsidiary of OMV AG) in the Exploration and
Production team where I served as Head of Strategy, Project & Engineering
and as a Director of Domestic Asset Business Unit.
14. I served as a member of the Executive Board at OMV Petrom SA from 2013
to 2016. During this time I was responsible for the Exploration and Production Division operating in Romania and Kazakhstan. During this
period of time OMV Petrom SA drilled more than 1000 wells and invested
around 5 billion USD in modernisation and redevelopment of the fields.
15. I have also previously served as Senior Manager at Schlumberger Paris and
as Principal at Bossard Gemini Consulting in Paris and Johannesburg.
Schlumberger is the world's largest provider of technology for reservoir
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characterization, drilling, production, and processing to the oil and gas
industry, employing approximately 100,000 people.
16. Bossard Gemini Consulting is the management consulting arm of
Capgemini. Headquartered in Paris, Capgemini is one of the world's largest
IT consulting, outsourcing and professional services companies with over
200,000 employees in over 40 countries.
17. I have successfully managed the post-acquisition transfer of seven offshore
oil & gas fields in Angola with excellent safety and environmental
performance while stabilizing production of the assets. I have also acted as
Program Manager for the post-merger business integration of Total, Fina
and Elf in nine countries in Europe. Total, Fina and Elf is one of the largest
oil, natural gas and speciality chemicals companies in the world.
18. At present, my principal role is to provide leadership, management and
guidance for the OMV NZ branch office to execute the business in line with
the OMV Exploration & Production strategy and directives. As a member of
the Board of Directors, I am accountable for the safe and efficient value
generation from exploration, development and acquisition projects and
production operations.
19. OMV NZ is a corporation set up under New Zealand law, wholly owned by
OMV Exploration & Production GMBH, a subsidiary of OMV
Aktiengesellschaft (OMV AG).
20. As the most senior OMV representative of OMV NZ, I am accountable to
ensure legal compliance and to represent the company in relation to
regulatory authorities and stakeholders, which includes overseeing this
deck drainage marine consent application.
Scope of Evidence 21. In this brief of evidence, I will discuss:
(a) OMV NZ’s existing operations (briefly);
(b) OMV’s governance structure in New Zealand;
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(c) the OMV group, including Corporate Principles, Code of Conduct,
and Health, Safety, Security and Environment (HSSE) priorities;
(d) OMV's proposed Exploration and Drilling Programme (EAD Programme) and its objectives, including OMV's obligations as an
exploration permit holder under the Crown Minerals Act 1991.
OMV'S EXISTING NEW ZEALAND OPERATIONS
22. OMV AG is an Austrian incorporated company engaged in producing and
marketing oil, gas, and innovative energy and high-end petrochemical
solutions. OMV AG is one of Austria's largest listed companies.
23. OMV began operating in New Zealand after acquiring a 30% share in the
Maari oil field following the purchase of Cultus Petroleum of Australia in
1999. Since 2008, OMV has been successfully producing liquid
hydrocarbons from the Maari Field in the offshore South Taranaki Bight.
The Maari Field is NZ’s largest producing oil field and is located
approximately 80kms offshore from Taranaki.
24. OMV has since expanded into a range of other assets through subsequent
acquisitions. These include shares in the Maui and Pohokura gas fields. In recent years, OMV has been granted a number of large offshore exploration
permits off the Taranaki coast – as well as being an operator of the PEP
57073 exploration permit off the Hawkes Bay/Wairarapa coastline and more
recently the Great South Basin exploration permit off the Otago coastline.
25. OMV is New Zealand’s biggest offshore exploration company with 7
offshore permits comprising of approximately 36,000 km² of permit area. In
the five Taranaki exploration permits that are the subject of this EAD
programme, OMV is in a joint venture with Mitsui and Sapura Energy.
26. OMV currently employs over 100 staff in New Zealand. Most are New
Zealanders. In addition, the Maari oilfield has some 40 staff on location to
operate the field, employed by an OMV contractor, MODEC.
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GOVERNANCE 27. OMV NZ’s organisational structure comprises three departments: Asset,
Functional and Support. This is consistent with the structures and reporting
requirements derived from the OMV UPSTREAM Operating Model.
28. The first line organisation chart of OMV NZ is shown as Appendix A.
29. The Finance Manager (Support Function) and I as Managing Director are
members of the OMV NZ Board of Directors. The Board of Directors
consists of 4 members in total, appointed by the shareholder, OMV
UPSTREAM.
30. Functional and Support departments are linked into their respective
functional organisations in the OMV UPSTREAM Division, which defines
the corporate regulatory framework for conducting the Business.
31. I report directly to the Executive Board member responsible for the
Upstream activity in OMV AG, located in Vienna.
CORPORATE PRINCIPLES 32. OMV1 is committed to achieving its business goals on a principled basis.
The OMV Group’s purpose is encapsulated in the phrase “We are the
energy – for a better life”: producing energy so as to create a better life for
all.
33. That purpose gives OMV the basis for its business: producing and
marketing oil & gas, innovative energy and high-end petrochemical
solutions — in a responsible way. OMV is committed to responsible and
sustainable business behaviour and building trustful stakeholder relations:
both inside the business community and within the wider community.
34. The OMV Group defines its five principles as: Team Spirit, Accountability,
Pioneering Spirit, Passion and Performance. These principles are systematically embedded into all of OMV's operations by using them to train,
1 All references to OMV in this evidence are to the OMV Group, which includes OMV NZ.
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guide and motivate employees. These principles are also used as
assessment criteria to measure performance across OMV's business areas.
(a) Team spirit: OMV knows that it can achieve more through
teamwork, both internally and externally. OMV places significant
value on stakeholder engagement and aims to work with all of the
interest groups affected by its activities. OMV regularly consults
interest groups to identify their concerns and expectations, explains OMV's operations and sustainability policies, and
endeavours to find solutions that benefit all parties. OMV is
committed to communicating openly, both internally and
externally, and to give and receive honest feedback. OMV is proud
of its positive relationships with local Taranaki iwi, fisheries
organisations and government stakeholders.
(b) Accountability: OMV understands that as a business it can only
reach its goals by being fully responsible for its own actions and it
expects every employee to be responsible for their own actions.
All employees adhere to international standards, New Zealand
requirements and best business practices. All employees are
expected to integrate social and environmental factors into their
decision-making processes and look for solutions to mitigate any potential impacts on the environment and community.
Professional management systems are in place to ensure
employees meet these expectations and to support employee
development. In particular, professional management ensures
OMV's high health and safety standards are fully understood and
achieved.
(c) Pioneering Spirit: OMV has been a pioneer not only through its
activities in the energy field, but also in promoting corporate social
responsibility and sustainability in the countries in which it
operates. OMV was one of the first Austrian companies to
regularly publish sustainability reports and to sign the UN Global
Compact (which expounds ten universal principles in areas of human rights, labour, the environment and anti-corruption). OMV
has taken the lead on incorporating sustainability goals into its
directives, key targets and corporate strategy, as well as
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implementing a group-wide sustainability strategy. All employees
are expected to integrate social and environmental factors into
their decision-making processes and look for solutions to mitigate
any potential impacts on the environment and community.
(d) Passion: OMV encourages its employees to care about their work
and to take pride in their results and achieving their goals. Proper
integration with the local community and alignment of OMV’s interests with those of the wider community help all OMV
employees to enjoy their work and to take pride in it.
(e) Performance: OMV seeks extraordinary performance from its
staff and in its activities. OMV focuses on outcomes rather than
activities or processes for their own sake and measures and
assesses its performance in all areas to determine what can be
done better. This is of fundamental importance in operational
safety for example, and is reflected in the recent development of
new offshore KPIs better to manage and ensure safety at all levels.
OMV’S CODE OF CONDUCT
35. To ensure OMV's values are implemented consistently across the world, the basic principles are set out in OMV's Code of Conduct, which applies to all
employees and contractors in all business segments. The Code of Conduct
is the key document that outlines how OMV will carry out its operations,
implement its strategies, and achieve its goals. The Code of Conduct covers
all core areas of sustainability management, with particular emphasis on
stakeholder relations, human rights, employees, governance and HSSE.
OMV’s Code of Conduct is attached as Appendix B.
36. As a long-standing NZ offshore oil and gas operator, OMV has an excellent
track record in HSSE compliance. As discussed above, OMV is committed
to responsible and sustainable business behaviour and building trustful
stakeholder relations within the wider community.
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HEALTH, SAFETY, SECURITY AND ENVIRONMENT 37. HSSE matters are equally as important to the OMV Group as other critical
business issues. The high-level performance and management objectives
that the OMV Group set in these areas are summed up in our HSSE Policy,
which is based on international standards. The HSSE Policy applies
throughout the Group and we expect our employees, contractors and
partners to fulfil its aims and requirements.
38. Since 2017, OMV NZ has been operating under the OMV Group ‘HSSE
Strategy 2020’ – which aims to fully implement our OMV HSSE Vision
‘ZERO Harm – NO Losses' through creating a sustainable HSSE culture.
The main aim of the Strategy is to provide clear direction going forward in
order to:
(a) strengthen OMV’s HSSE commitment and leadership;
(b) increase the efficiency and effectiveness of OMV’s HSSE
processes;
(c) ensure HSSE risks are managed to an acceptable level;
(d) empower people to act interdependently;
(e) build on sustainable safety for people and assets;
(f) improve ability to work through integrated health management; (g) protect people and assets against emerging malicious intentional
threats; and
(h) minimize OMV’s environmental footprint throughout the entire
lifecycle.
39. A copy of OMV Group’s HSSE Policy is attached to Mr Park's evidence.
PROPOSED EAD PROGRAMME 40. OMV New Zealand is proposing to undertake a multi-well Exploration and
Drilling (EAD) Programme in the Taranaki Basin from 2019 to determine the
presence of hydrocarbons within a number of identified geological
structures and to investigate the production potential within the PEPs which OMV operate. The proposed exploration wells are shown in Appendix C.
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41. Under the Taranaki exploration permits held by OMV NZ, there are a
number of obligations for permit holders set out under the Crown Minerals
Act 1991 – which first and foremost seek to secure a financial return in the
form of royalties for the New Zealand government. All NZ Government
exploration permits include commitments to the Crown, administered by
New Zealand Petroleum and Minerals (part of MBIE). These commitments
require the permit holders to undertake a range of activities within specified
timeframes, including seismic surveys and exploration wells, or risk forfeiting the permit.
42. Specific to this EAD programme, OMV has permit commitments to the NZ
Government to drill a number of exploration wells during 2019/2020 in the
Taranaki basin. All the proposed wells will be shallow water wells in ~100m
water depth, drilling to depth of 2500 – 4500 m. The permit commitments
specific to OMV for this EAD programme are summarised in Table 1 below.
NZPAM Permit Number
Permit Name First Well Commitment
Second Well Commitment (contingent)
PEP 51906 Matuku 2019 2021
PEP 57075 Cloudy Bay 2020 2025
PEP 60091 Te Whatu 2020 2028
PEP 60092 Ridgeline 2022 2028
PEP 60093 Toutouwai 2022 2028
PEP 57073 Pegasus 2022 2030
Table 1: OMV Offshore Taranaki Exploration and Appraisal permit requirements.
43. Under these permit obligations, if the wells are not drilled, the Minister of
Energy may revoke the permit/s. In addition to losing the opportunity to
exercise the permits, any such revocation would affect OMV’s reputation as
a reliable operator which could potentially jeopardise any future permit
applications.
44. OMV has had an excellent history of meeting all NZ Government permit
obligations and provides an updated work programme to MBIE annually as
part of the formal review process. These work programmes are discussed
during an annual Permit Review Meeting which involves senior
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representatives of central government, including MBIE, WorkSafe, Maritime
New Zealand and the Environmental Protection Authority
45. Historically, approximately 80 exploration and appraisal wells have been
drilled by multiple operators since 1968 in the Taranaki Basin. Apart from
this area, New Zealand’s 15 sedimentary basins are considered to be
significantly under-explored, with particularly good potential for gas.
46. However, with the recent announcement of the cessation of offshore block
offers by the new elected coalition government earlier this year, only those
areas covered by pre-existing exploration permits can be explored.
Further, the government has also recently announced a desire to transition
to other energy sources in the coming decades.
47. During the transition, hydrocarbons are going to be still needed and gas will
be a very important bridging fuel, and much of New Zealand’s industrial
production and domestic heating depends on it. That puts the focus on the
certainty of known hydrocarbon reserves, and what might yet be untapped
in the remaining permit areas. If at some stage in the future the country
cannot produce enough gas locally to meet demand, it would need to be
imported.
48. After two summers of active seismic survey activities within OMV’s
exploration permits in the offshore Taranaki basin, OMV has the necessary
scientific information on the reservoirs to commit to exploration drilling.
Based on this information, the exploration and appraisal drill locations
subject to this EAD Programme are the most likely locations to have
commercially recoverable hydrocarbons.
49. The EAD Programme includes the drilling of up to nine exploration wells and
three appraisal wells. The coordinates and water depths of the proposed well locations are listed in Appendix D.
50. A MODU will be selected that will be capable of drilling the proposed
exploration and appraisal wells and that meet the structural specifications
for environmental protection proposed in the marine discharge consent
application. The statement of evidence of Mr Hollinger describes the Mobile
Offshore Drilling Unit (MODU) selection process in more detail and Mr Park
provides more detail on the extent of the HSSE requirements and
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contractual obligations that OMV requires as part of the exploration drilling
rig tendering.
51. It is possible that more than one MODU would be used under the marine
discharge consent for the EAD Programme. Drilling is anticipated to
commence in 2019, and will be completed as a part of one or more drilling
campaigns over the subsequent duration of the relevant exploration permits.
Based on the current PEPs, the drilling of any of the wells listed in Appendix C could occur up to 2025.
52. The final details on the exploration and appraisal drilling programme,
including the number of holes drilled and drilling locations, as well as the
drilling process and equipment, will be detailed through subsequent consent
applications.
ECONOMIC IMPACT FROM THE EAD PROGRAMME
53. The oil and gas sector provides an estimated 5,068 full-time-equivalent
(FTE) jobs directly within New Zealand, and the industry contributed
approximately $1.5 billion in royalties over the last four years to the New
Zealand government. When indirect companies (engineering companies
and technical services, etc), that rely on the oil and gas sector for a major portion of their work, are added into the equation this would increase to
approximately 11,720 FTEs with a contribution to the New Zealand GDP of
more than $2.79 billion (Venture Taranaki, 2015).
54. Since OMV began operating the Maari Field in 1999, OMV has invested
over NZ$2 billion into the New Zealand economy. In addition, more than
NZ$1 billion has been paid to the New Zealand government in taxes and
royalties from OMV's activities. OMV directly employs approximately 100
staff working in Taranaki and Wellington. These figures provide an
indication of what economic benefits the country can receive from a
producing offshore field.
55. This discharge consent application is for a minor component of the EAD Programme. I do not anticipate that there will be an economic benefit from
the discharge of trace amounts of harmful substances from the deck drains
of an MODU. However, the overarching EAD Programme will provide
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substantial economic benefits to New Zealand. For example, the EAP
programme will increase employment by 156 FTE-years (which is the
number of people employed full-time by the duration of that employment).
56. The economic impact of the EAD programme will be assessed in specific
detail by an independent economist commissioned as part of the
subsequent marine consent applications for the EAD drilling and associated
activities.
Gabriel Selischi
30 July 2018
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Appendix A: OMV New Zealand Management Structure
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Appendix B: OMV’s Code of Conduct
The energy for a better life.
Code of Conduct – Our Values
3
Contents
4 Statement of the Executive Board
7 Our Values are Universal Values
9 Stakeholder Relations
15 Health, Safety, Security and Environment (HSSE)
19 Human Rights
23 Employees
27 Governance
31 Scope
About this document
The Code of Conduct outlines the basic principles that govern all of our actions. This Code of Conduct, applied to all our Business Segments, is based on our corporate values and should be regarded as a central document to address the Group as a whole. It gives guidance on how we fulfill our tasks, implement our strategy and achieve our operational and economic goals. A separate Code of Business Ethics covers our zero tolerance policy towards bribery, fraud, theft and other forms of corruption.
This Code of Conduct was drawn up in-house in collaboration with the works council, our corporate functions and our Business Segments. We are happy to receive any feedback, comments, input and suggestions for improvements from both internal and external persons in order to further improve our Code of Conduct and to better achieve our goals.
Contact: [email protected]
4
STATEMENT OF THE EXECUTIVE BOARD
Statement of the Executive Board
OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions
in a responsible way. OMV aims to provide affordable energy for the sustainable development of
society and the economy while respecting the environment. Sustainable business behavior is crucial
for OMV to create and protect value in the long term, to build trusting partnerships and to attract
customers as well as the best employees, investors and suppliers. The Executive Board is fully com-
mitted to sustainability.
At OMV, we have a long tradition of sustainable and responsible behavior towards employees, the environment and society. OMV is delivering energy responsibly to improve people’s life. Sustainability for OMV means creating long-term value for our customers and shareholders by being innovative and an employer of choice. We conduct our business in a responsible way, respecting the environment and adding value to the societies in which we operate. We concentrate our efforts on the following five focus areas:
Health, Safety, Security and Environment (HSSE); Carbon Efficiency; Innovation; Employees; Business Principles and Social Responsibility
We have laid down the basic principles that govern all of our actions in this Code of Conduct. We are committed to implementing sustainability manage-ment in our Group, based on a comprehensive and ongoing process. This includes taking economic, ecological and social aspects into account in our decision-making processes and business activities. Therefore, we place our responsibility
towards society, the environment and our stake-holders at the center of our sustainable activities. We support and facilitate social commitment in the course of our projects. To this end, we work continuously on measurable criteria, set up cor-responding management systems and set forth fundamental principles, guidelines and standards.
As a forward-looking company, we therefore seek to foster an active and open dialogue with our employees, customers, shareholders, the govern-ments, interest-group representatives, non-gov-ernmental organizations, local communities, business partners and the general public. In our communications with all parties, our objective is to deal with any controversial issues in a responsi-ble manner and find mutual solutions.
Business success can only be achieved and maintained over the long term by acting respon-sibly and sustainably. Specifically, we take into account safety, health, security, the environment, employees’ and consumers’ interests, as well as the conditions of the people living in our areas of activity.
The Executive Board
5
6
OMV
We transmit our values to the next generation.
We comply with the prin-ciples and requirements of
the UN Global Compact.
7
OUR VALUES ARE UNIVERSAL VALUES
Our Values are Universal Values
As an integrated, international oil and gas company, we face major challenges in our industry and
bear considerable responsibility towards our stakeholders, which include our employees, customers,
shareholders, governments, interest-group representatives, non-governmental organizations, local
communities, business partners and the general public. We seek to meet their individual expectations
and the challenges ahead with an innovative mindset.
Since our operations have a considerable impact on society, the environment and the economy, we
actively engage in an open dialogue with all the interest groups that share our concerns and are called
upon to assess our activities and measure our performance. These include our competitors, govern-
ments and political representatives, regulatory authorities, civil society, local communities and the
media. Based on a collaborative attitude and an open exchange with all parties involved, we seek to
develop and comply with the highest possible operating standards.
In establishing our fundamental values and our monitoring and reporting systems we are guided by recognized best practices and international standards.
We therefore adhere as a Group to the United Nations (UN) Global Compact and are prepared to adopt the fundamental principles it enjoins. We accept the ten principles based on and deriving from the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corrup-tion as the framework and basis for improvements to our Group Guidelines and the continuing devel-opment of our Code of Conduct.
The UN Global Compact proposes the following
ten principles, which we hereby adopt:
To support and respect the protection of interna-tional proclaimed human rights in relation to all our business activities
To make sure that we are not complicit in human rights abuses
To uphold freedom of association and the effective recognition of the right to collective bargaining
To work for the elimination of all forms of forced and compulsory labor
To work for the effective abolition of child labor
To support the elimination of discrimination in respect to employment and occupation
To support a precautionary approach to environmental challenges
To undertake initiatives to promote greater environmental responsibility
To encourage the development and diffusion of environmentally friendly technologies
To work against all forms of corruption, including extortion and bribery
In all our business activities we follow the ten principles of the UN Global Compact and the UN Guiding Principles on Business and Human Rights without reservation and will respect them to the best of our understanding and ability.
OMV has been a signatory to the UN Global Com-pact since 2003 and is fully committed to the UN Guiding Principles on Business and Human Rights. As an integrated oil and gas company with an inter-national presence, through our day-to-day business projects and initia tives we continue supporting the UN Sustainable Development Goals (SDGs) defined by the UN General Assembly in 2015. Our projects and Key Performance Indicators (KPIs) are assessed with regards to their contribution to the SDGs. More details about the SDGs supported by individual projects can be found on our website (www.omv.com/sustainability). OMV recognizes that climate change is one of the most important global challenges and acknowledges the goals set forth by the Paris Climate Change Agreement. As part of our carbon strategy, we have endorsed World Bank’s “Zero routine flaring by 2030” Initiative to end the routine flaring and vent-ing of associated gas during oil production by 2030.
We also employ internationally accepted methodol-ogies as the basis of our monitoring and reporting systems. Our Sustainability Reports have been de-veloped according to the Global Reporting Initiative Guidelines.
9
STAKEHOLDER RELATIONS
Confidence, respect, and transparency are indispen-sable to sustainable relations between us and our stake-holders in the countries where we have a presence.
Stakeholder Relations
OMV is committed to genuine stakeholder enga gement, convinced that mutual respect, transparent
behavior and open dialogue are the best foundations for a good relationship with the different stake-
holders we interact with. In our stakeholder engagement approach we identify and manage the rela-
tions to those persons, groups or organizations who can be impacted by our activities or are capable of
having an impact on our business. These include, among others, employees and their representations,
business partners, customers, government authorities, media, society and NGOs.
We are happy to work in close cooperation with all our contacts in this operating environment and
believe that there are benefits for all parties to be gained from effective collaboration. We work with
partners and contractors who respect our organizational policies. Integrity and trust can be badly affect-
ed by personal conflicts of interest. Openness with respect to underlying interests is important to us.
We pay attention to personal interests and motivation and to the negative effects that our activities
could have on them. We make a conscious effort to communicate our business policies comprehensive-
ly and in detail in order to make clear what we expect from our partners and contractors and what our
stakeholders can expect from us.
Customers and the interests of consumers
We orient ourselves towards the demands of the market and contribute to excellent and enduring relationships with customers and consumers through innovation, the creation of modern and environmentally conscious products, the quality of our services and through our application- specific know-how.
In developing products, in choosing raw materials and in processing, we make every reasonable effort to safeguard the benefits that our customers derive and to ensure their safety, satisfaction and quality of life, while at the same time achieving the highest levels of profitability.
We expect our products to retain their quality throughout their lives. The information we provide on our products with respect to safety in use, stor-age, maintenance and disposal is clear, precise and always up-to-date. It is actively disseminated in order to ensure that consumers enjoy the bene-fits of our products in safe and environmentally friendly ways.
In the interest of our customers we evaluate the risks associated with our products on the basis of the latest available scientific knowledge and to communicate the results to them together with appropriate instructions for use of the products.
10
STAKEHOLDER RELATIONS
Capital market and shareholders
Our company is listed in the prime segment of the Vienna Stock Exchange. In the long run, the value of our enterprise should also be reflected on the capital market, that is, in the share price. Targeted investor relations activities increase the visibility of the company on the financial market and foster our relationships with our shareholders, investors and analysts and create as well as maintain an atmosphere of trust.
In our investor relations activities we are guided by national and international standards. New information is immediately released to financial markets and the public if its effects on the assets and finances or performance of the Group are likely to affect the share price significantly. Infor-mation is without exception released regularly and simultaneously to shareholders, financial markets, the media and employees alike.
We acknowledge unequivocally the fundamental principle of “one share, one vote,” so that all shareholders are treated equally. We also see responsible sustainability management as an avenue for accessing new capital markets. Our benchmarks include assessments by transparent environmental, social and governance (ESG) rating agencies.
Partners, suppliers and contractors
OMV applies its sourcing and logistics expertise to ensure the best quality of the materials and services. We work in close cooperation with our partners, contractors and suppliers. Even in the light of all the advantages obtainable from long-term connections with suppliers, we avoid any agreement which might be considered as restrict-ing fair competition.
11
STAKEHOLDER RELATIONS
We are committed to irreproachable integrity in our business relations. We take account of the sociocultural norms and business practices in host countries, and ensure they are not at variance with our fundamental ethical principles.
We do not promise, offer, pay or accept bribes in order to obtain unethical advantages. Gifts, hospitality and the like are only permissible in line with the Code of Business Ethics. We undertake to demonstrably relate commissions and payments to third parties to legitimate business expenses, linked to the services rendered and to account for them openly.
We only enter into partnerships with suppliers and contractors who subscribe to our values. We use our collaboration with partners, suppliers and contractors to embed key human rights in their business practices and increase their awareness
of ethical and ecological standards. OMV has a process in place aimed at ensuring that sanc-tioned parties (e.g. by EU, United Nations) are not accepted as business partners for our procure-ment activities.
Filling station partners
Our filling station partners contribute significantly to our success by presenting our brand, our prod-ucts and our service-oriented approach to the pub-lic. They give us the benefit of their entrepreneur-ial experience, their dedication and their feeling for the needs of customers. Our brand provides the basis for their business success, and we, as an international enterprise, provide the advantages of scale and the specific technical know-how they need to ensure the highest level of quality.
Local stakeholders meeting the General Manager in Tunisia
We only enter into partner-ships with suppliers and
contractors who subscribe to our values.
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Employee representation, interest groups, NGOs
We respect the freedom of association and collective employee representation. We make every effort to work constructively with employee representatives to achieve mutually satisfactory solutions. This includes collaboration with repre-sentatives elected by our employees under local legislation. In our own interest and in that of the industry, the community and society as a whole, we maintain open contacts with trade associations and organizations and relevant interest groups.
We welcome constructive criticism and discussion with interest groups that are prepared to engage in open, serious and objective dialogue with us. Even against a background of differing understandings of roles and problems, we endeavor to accept diverging interests as an opportunity to enhance our view of one another. As far as possible, we will work together to resolve conflicts and strive to promote stakeholder dialogue and involvement. In our search for valuable solutions, we collaborate and cooperate with Austrian, Romanian and other international partners and contractors.
Collaboration with universities
In applied research and technology, we contribute with our knowledge and expertise where we see mutual interest. We acquire new insights by com-missioning scientific research projects and review research results in exchange. Our education focus is driven by the recognition that sharing expertise through lecturers and providing internships will not only educate a new generation of outstanding experts and leaders with close ties to OMV but also inspire innovation to return to the company.
Regulatory bodies, political environment, governments
International and governmental relations is the interface in OMV with the relevant decision makers in politics and in the public administration.
We inform our stakeholders in Austria, at EU and international level about our business, in order for them to understand how the oil and gas industry works, the challenges it faces today and the contri-bution it will play in the future. The relations with our stakeholders are sustainable and based on transparency and mutual trust.
Our service station partners re present our company and are thus an integral part of our success.
13
STAKEHOLDER RELATIONS
Community relations and development
The nature of our operations means that we have an impact on the local communities in which we operate. Many of our business activities are visible to local people and to some extent will intrude on their communities. Our aim is to establish and maintain good relations with our stakeholders. OMV implements community development projects that contribute to the local needs and UN SDGs. OMV values the contribution of the employees who support them on a voluntary base.
Stakeholder engagement and human rights issues are the basic building blocks of trust and we are constantly striving to maintain good relationships with our neighbors. We have an active partnership with the communities around our business opera-tions. Together, we aim to build capacity in order to support local development.
OMV successfully promotes the social benefits of its operations while running efficient country operations. In order to do so, OMV has a con-sistent approach in receiving, registering and solving grievances. The management process for
community relations and development ensures that social issues are integrated into all businesses and OMV earns and maintains local license to operate.
We believe that economic development helps em-power local communities and support those initia-tives that help improve local economic conditions.
Communications
We believe in open and honest communication inside and outside the organization. In our external communication we place great value on close and constructive cooperation with media representa-tives based on our compliance rules, always keep-ing the shareholders’ right of first information in mind. The single point of contact for any external communications is the Corporate Communications department. Employee information is considered of great importance by the Management. It is provided in the form of meetings, personal presentations, the OMV Intranet and other elec-tronic formats as well as via print media. Regular townhall meetings with employees are part of our communication portfolio.
OMV motivates girls to consider choosing a technical career path. To this end, OMV experts – both
men and women – introduce them to various technical professions.
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HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE)
Health, Safety, Security and Environment (HSSE)
Wherever we operate, we behave with the express intention of taking as our model the highest
standards for health, safety, security and the protection of the environment and with the aim of
continually improving our performance in these respects.
Our health, safety, security and environmental protection principles form an integral part of our
corporate HSSE policy, from which our Business Segments and Group companies derive their aims.
All our efforts focus on the continuous improvement of environmental quality and safety standards as
well as security best practices throughout the Group.
We enforce the highest standards of health, safety, security and envi-ronmental protection. We develop these on an ongoing basis, and ensure that they are practiced by everyone at our company.
Occupational medicine and health care
Our HSSE policy outlines OMV’s commitment to our employees’ physical and mental health and well-being. OMV understands that the well-being and health of employees are part of the foundations for a successful company. To raise awareness of the importance of health as an organizational asset, we provide a broad range of healthcare activities, from curative care to pre-ventative initiatives, and we systematically assess this with a risk assessment tool based on interna-tional guidelines and aim to mitigate health risks.
The Corporate Health Management department supports medical partners group-wide in deliver-ing quality healthcare. The basis for occupational health prevention is health risk assessments performed on site. Through these assessments we define which employees are exposed to chemical and physical factors, such as heat, cold and vi-brations as part of their work environment. Based on them OMV develops mitigation and protection plans.
Safety
OMV’s approach to accident prevention is guided by corporate regulations. Hazard identification and risk management processes are in place to
prevent incidents. We train, empower and encour-age people to work safely and invest in technology, programs and processes to ensure that our facilities and operations are safe for employees, external stakeholders and the environment.
OMV takes into account all the lessons learned from monitoring the actions defined to prevent the occurrence of severe incidents or incidents with high potential, as well as the results of external audits. All employees and contractors are encour-aged to report unsafe conditions and behaviors in order to identify and resolve potential issues that might otherwise lead to future accidents. We assume responsibility for safety in any outsourced or contracted activity, and have established pro-cesses that require contractors to work according to our standards.
Our emergency and crisis management system requires that contingency plans include clearly defined contact persons, workflows, call flows and responsibilities. Simulations are used to test alarm systems, the ability of auxiliary services to co operate, the management organization and how well it functions, and lines of communication.
Great importance is attached to continuous devel-opment of up-to-date safety measures within the Group for use in ecologically sensitive or densely populated areas.
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HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE)
Protection of people, assets and reputation
OMV’s security and resilience strategy, procedures and mitigation measures have proven effective in protecting employees, contractors, assets and reputation, especially in high-risk or complex envi-ronments. Our use of information and intelligence enables preemptive contingency planning to ensure a proportional security response to a wide range of geopolitical effects, regional conflicts and potentially disruptive localized incidents.
Our Integrated Travel Security Platform incorpo-rates all OMV ventures; monitoring all interna-tional and domestic business travel for security related events and providing 24 / 7 information, advice and response capability. This is further augmented by our Security Risk Assessment Platform also delivering tangible results, providing real time oversight of risk exposure and automat-ically recalibrating exposure levels in response to geopolitical or security events.
Our proven crisis management procedures are continually improved in order to afford the neces-sary amount of mitigation and governance.
Security in the workplace
The security of our employees and sub-contractors is of paramount importance to us.
We provide all employees and subcontractors with periodic training courses to further develop security awareness, build confidence and refine those necessary security skills that empower them to deal with known or emerging security threats, incidents and crisis situations. This is further enhanced by a comprehensive set of minimum baseline security measures that ensure a propor-tional and compliant security posture is adopted.
Human rights policies remain paramount and effective community engagement is a powerful security mitigation measure for us in regions experiencing conflict or instability.
In high-risk countries, our local security and CSR strategies work closely together, promoting effective policies, mutual respect and transparen-cy with all local stakeholders who, in turn, directly contribute to OMV’s stable and secure operating environment.
All employees and contractors are encouraged to report unsafe conditions and behaviors in order to identify and resolve potential issues that might otherwise lead to future accidents.
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Environmental protection
For OMV, environmental management is more than compliance with legal requirements. We manage environmental impacts along the entire value chain, from Upstream and Downstream production to product quality.
The overall strategic goal is to minimize OMV’s environmental impacts, risks and liabilities, particularly in the areas of spills, energy use and greenhouse gas (GHG) emissions. Therefore, we are reducing the carbon and water intensity of OMV Group’s portfolio and we are strongly com-mitted to acting on climate change mitigation.
OMV identifies and effectively manages environ-mental risks in all operations, and ensures zero harmful discharges of pollutants into the atmos-phere, land and water.
Climate protection and energy efficiency
Climate change represents one of the most im-portant global challenges. OMV acknowledges the goals set forth by the Paris Climate Change Agreement and focuses on the one hand on pro-cess optimization and projects that reduce energy consumption, direct GHG emissions and costs. On the other hand, OMV focuses on natural gas, the fossil fuel with the lowest carbon intensity as well as on new energy sources and technologies.
Climate change-related risks and opportunities are considered and addressed across the Company as part of the Enterprise Wide Risk Management process and also reported to CDP.
OMV places carbon efficiency as one of its strategic focus areas and continuously works on improving its operations and product portfolio to increase energy efficiency and reduce GHG emissions.
OMV shows a high level of transparency, uses energy responsibly and develops energy man-agement plans in consistency with ISO 50001 requirements.
Great importance is attached to continuous development of up-to-date safety measures within the Group for use in ecologically sensi-tive or densely populated areas.
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HUMAN RIGHTS
We strongly oppose forced labor, slavery, child labor and human trafficking.
Human Rights
Human rights are universal values that guide our conduct in every aspect of our activities. As a
signatory of the UN Global Compact and fully committed to the UN Guiding Principles on Business
and Human Rights, we respect, fulfill and support the realization of human rights as contained in the
Universal Declaration of Human Rights and in internationally recognized treaties.
Our approach
The primary responsibility for the protection of human rights lies with governments. We have, however, accepted responsibilities to respect, fulfill and support the realization of human rights in relation to all our business activities and not to become complicit in any human rights abuses, as understood under current international law.
Wherever we operate, we act in strict compliance with applicable national law. Where national law falls short of our standards, based on international human rights law, we are guided by our higher standards unless this is forbidden by law. We show respect for the national culture and way of life, with the earnest intention of understanding the special character of our host country. We understand equality and non-discrimination as the cornerstone of the human rights edifice and support the idea that no one shall be treated differently, in particular worse than others, simply because of characteristics such as gender, age, nationality, language, religion, political opinion, sexual orientation or ethnic origin.
The OMV Human Rights Management System includes the due diligence process and tools and the Human Rights Matrix. This matrix maps our concrete responsibilities in the fields of equality and non-discrimination, security, work-related rights, local communities and indigenous peoples’ rights, and acts as the basis for all our human rights-related activities.
Human rights due diligence
Professional tools and techniques enable us to assess the risks of human rights violations with respect to our business, even before we are active in a new country. Together with internationally recognized experts and local, national and interna-tional stakeholders we derive concrete measures to reduce the risk of direct and indirect involve-ment in human rights violations. In addition to this ongoing human rights due diligence we have established effective operational-level grievance mechanisms and aim to contribute to fulfill human rights through our activities.
20
HUMAN RIGHTS
Forced labor, child labor, freedom of association
As a global enterprise, we operate in host coun-tries with the most varied socioeconomic and sociocultural systems and are bound by relevant national regulations. We respect freedom of association and effective recognition of the right to collective bargaining, and we consult on a regular basis with employee representatives.
We strongly oppose forced labor, slavery, child labor and human trafficking. To ensure our sup-pliers’ support of OMV’s human rights values and to mitigate the risk of forced labor, slavery and human trafficking, OMV´s supply chain partners have to sign OMV´s Code of Conduct – including the provisions on human rights – as part of their contract. OMV reserves the right to terminate the relationships with its suppliers, if issues of non-compliance with OMV´s Code of Conduct are discovered or non-compliance is not addressed in a timely manner.
Human Rights and Security
Where one of our operations requires the pro-tection of armed security forces, as the operator or the manager responsible for operations, it is our duty to ensure that the greatest possible care is used in recruiting security personnel and that, where necessary, mandatory training is provided so that the recruits become familiar with and accept the basic requirements of respect for internationally recognized human rights. In such cases we also accept the responsibility for suitable monitoring of respect for human rights by security personnel. In partnership situations, we do our utmost to ensure that our partners apply similarly high standards, or we help them to develop them.
All of our endeavors are supported by continous
dialogue with local inter-est groups.
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HUMAN RIGHTS
23
EMPLOYEES
We continuously monitor market trends and international best practice in order to attract, motivate and retain the best-quali-fied employees around the world.
Employees
Our employees are key to OMV’s sustainable business performance and success. We strive to create an
environment in which every employee can learn, grow, connect and collaborate, as well as live a safe
and healthy lifestyle. Through our activities, we support the “four fundamental principles and rights at
work” outlined in the ILO (International Labor Organization) Declaration. Our principles – Team spirit,
Accountability, Passion, Pioneering spirit and Performance – foster the culture OMV aspires to.
We strive to be one of the best companies to work for and to be a fair and responsible employer that
promotes equal opportunities, modern forms of employee development and a positive and dynamic
working environment. Outstanding and motivated employees are the key to the Company’s success.
People Strategy
We strive to contribute to making people’s lives better. Powered by our people, we translate ener-gy into quality of life, and this is key to our People Strategy. We know that it is the experience, skills, attitude and commitment of our people at OMV that shape our strategy. To unlock our organiza-tion’s full potential, we primarily focus on the main pillars of our People Strategy:
Inspiring leaders: building diverse and high- performance teams with a strong pipeline for critical positions and a diverse talent base for further development
Performance-focused and principle-led
behavior: embedding our Principles in all our people processes and anchoring them in our performance management – a principle-led culture as common ground for our identity
Organizational agility and excellence: standard-ized operating models and efficient end-to-end processes as key factors for agility and process excellence
Great place to work: creating an environment where people can develop professionally and fulfill their personal aspirations in line with our business needs.
Diversity
Diversity is of great importance within OMV. The OMV Group diversity strategy comprises two major focus areas: gender and internationality. Being active in an industry with a strong technical focus, it is particularly challenging for the Company to achieve a satisfactory gender balance in all fields of business activity. OMV is committed to support-ing women’s advancement to managerial positions. The strategic objective is to achieve the best di-versity mix at the senior management level and to continuously improve within the coming years.
Recruitment
We are committed to selecting and recruiting employees who are the best suited to the current and future requirements of the job and to sup-porting their integration into the organization. The principle of equal opportunity is strictly observed. Employees and job applicants will not be discrim-inated against on grounds of age, race, faith or religion, skin color, nationality, ethnic origin, political or other beliefs, gender, sexual orientation, disa-bilities or family status. The posting of vacancies internally ensures that existing employees have at least as good a chance as external applicants. Our employees are selected exclusively on the basis of their qualifications, suitability and performance. We strive to employ people from the countries in which we are operating.
24
EMPLOYEES
Employment
Our personnel policy is based on long-term employment. Staff and organization should both benefit from long-term working relationships.
With this in mind, we take special care in the selection of staff and attach great importance to education and training programs, to conditions of employment and long-term career development. In areas, where relevant, strategic manpower plan-ning is taken up to support a long-term view.
We are also aware that job security represents a major concern not only for the individual employee, but also for society and the region concerned and therefore we make every effort to live up to these responsibilities by means of contingency planning.
Where business, organizational or security changes require adaptations in the workplace or even a termination of employment, we evaluate all the options, engage in constructive dialogue and respond with the maximum possible care and sensitivity.
Where despite training, transfer or development programs the release of staff becomes unavoid-able, we make every effort to take into account the economic and social consequences of those affected. Furthermore, each member of staff is entitled to refuse to take risks in countries that OMV designates as high-risk areas, in the knowledge that they will not face disciplinary action. Employees can also complete their work duties in a way that is compatible with important life phases and their work-life balance, with the approval of their supervisors.
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Reward management
OMV aims to ensure competitive compensation and benefits packages that drive and support our strategy as effectively as possible. We continuously monitor market trends and international best practice in order to attract, motivate and retain the best-qualified talent around the world. We strive to build long-lasting employment relationships. Furthermore, we encourage salary equality at all career stages by, for example, setting standard-ized entry-level salaries that are reviewed each year in line with the local market situation.
Learning and development
OMV’s competence framework with four key areas outlines the competencies that are essential to be an effective member of the OMV team. The framework, along with career paths, can help em-ployees and their managers understand the skills, knowledge and behavior they need to be effective in the company. We guide employees to learning and development experiences within each area.
We strive to be one of the best companies to work for and to be a fair and responsible employer that promotes equal opportunities.
We strive to build long-lasting employ-ment relationships.
27
GOVERNANCE
Governance
As a listed company, we are subject to strict regulations. In addition to this, our governance also
includes far reaching voluntary standards of conduct and management principles that create a solid
basis for trust through sound business ethics, prudence and integrity.
We place a strong emphasis on preserving transparency in our Company’s management and control structure.
We see the elements of sound governance as an integral part of sustainability management, especially those elements that serve to minimize risks and increase the basis of trust with our stakeholders.
Management systems
We disclose the responsibilities and competencies of the company’s representatives and boards in the articles of association and in the representa-tive bodies. The Code of Conduct is an expression of our values. As such, it is the central document that governs all of our actions, is a binding corpo-rate directive for all fully consolidated subsidiaries and also applies where we have a dominant influ-ence. The sustainability management system is laid down in a binding set of regulations that out-line the organizational structures, documentation hierarchy, processes and system objectives. Its integration into the strategy and into the company’s decision-making processes is one of the most important elements of the management system.
Code of corporate governance
OMV believes in sound corporate governance, transparency at management level and internal control structures to strengthen stakeholder confidence. OMV has committed itself to the Austrian Code of corporate governance (ACCG) issued by the Austrian Working Group for Corpo-rate Governance since its introduction in 2002 and seeks to comply with best practice in Corporate Governance. OMV complies with all ACCG rules including the non-compulsory best practice sec-tions. OMV’s compliance with the ACCG is evaluated every year by independent advisors.
OMV publishes a Corporate Governance report every year containing detailed information on the composition of the Executive Board and the Supervisory Board, their working procedures and a detailed report on the remuneration of Executive and Supervisory Board members. OMV adopted guidelines for the independence of the Supervisory Board that, inter alia, require Board members to disclose any conflicts of interest. Auditors’ fees are also disclosed in the Corporate Governance report.
The capital stock is divided into bearer shares of no par value. There is only one class of shares. All shares have the same control rights. The Executive Board consists of two to six members. The Super-visory Board consists of at least six members elected by OMV’s Annual General Meeting and members nominated by the works council as pro-vided for by Austrian labor law.
Risk management
We continuously carry out risk reviews in order to assess our current and future financial and non- financial risks, assess how these trends will impact OMV and then develop appropriate responses. We report key risks internally at least twice a year through a very clearly defined process up to the Audit Committee.
The Executive Board drives the Company’s commit-ment to the risk management program and sets the tone for a strong risk culture across the organ-ization. It also ensures a proper balance between risks and potential returns across the Group. Our risk management processes focus on risk identi-fication, assessment and evaluation of such risks and their impact on the Group’s financial stability and profitability in order to actively manage risk in line with the Group’s risk appetite and defined risk tolerance levels.
28
GOVERNANCE
Compliance management
OMV operates in many countries, each of which has their own unique cultures and laws. We have set up a compliance organization which supports the implementation of OMV’s standards on a groupwide basis. It consists of a Compliance department with Group-wide responsibility and is supported through a Corporate Affairs & Compliance department in OMV Petrom and local compliance officers in all countries where OMV Group companies are active. The Chief Compliance Officer directly reports to the Executive Board and to the Supervisory Board. The OMV compliance organization manages:
Business ethics/anti-corruption
Capital markets law
Competition law
Trade sanctions and embargoes
Business ethics
Through a Code of Business Ethics we promote a sense of proactive ethical responsibility through-out the Group. The Code of Business Ethics is signed off by the OMV Executive Board. The Code of Business Ethics sets out a zero tolerance policy towards bribery, fraud, theft and other forms of corruption, and covers:
Conflicts of interest
Bribes and facilitation payments
Intermediaries and lobbyists
Gifts and hospitality
Donations
Competition and anti-trust law
Trade sanctions and embargoes
The Code of Business Ethics applies to all employees without exception, and is designed to comply with the standards set by Austrian as well as inter-national anti-corruption legislation (mainly the OECD Anti-Bribery Convention and the UK Bribery Act).
Employees who violate the Code of Business Ethics may face disciplinary consequences, which could involve dismissal, and may expose OMV and themselves to criminal liability. Upon suspicion of fraudulent acts or corruption – whether committed by OMV employees or by a business partner – the Code of Business Ethics encourages OMV employees to inform the Compliance department immediately. OMV employees may contact the Compliance department anonymously.
Product responsibility
Our objective is to provide products that meet our customers’ quality and cost requirements. Environmental, health and safety issues are integral to the way in which we manage product quality throughout the manufacturing and sales process. We manage product quality and safety in accordance with our internal policies and with international and national regulations and stand-ards. We have established effective processes and workflows to secure our compliance with the EU Regulations on Registration, Evaluation and Au-thorization of Chemicals (REACH) and on Classifi-cation, Labeling and Packaging of substances and mixtures (CLP). We are committed to maintaining and updating our mandatory registrations, so as to keep up with relevant regulatory developments. Every product that we manufacture, market or distribute complies with relevant legislation. We also provide ongoing product training for our employees, suppliers, filling station partners and customers. In addition, our partners and custom-ers are provided with detailed information about our products.
Finance and controlling
As a listed company, we are subject to strict reg-ulations. We prepare our accounts in accordance with IFRS and release annual and quarterly reports on our business.
The function of value management is to focus business activities on long-term growth of enter-prise value and to create, foster and improve potential new sources of value. The exploitation of potential new sources of value is ensured through the implementation of operating measures.
29
GOVERNANCE
Internal Audit
Internal Audit is an integral part of the company’s corporate governance framework and is an independent, objective assurance and consulting function in the OMV Group designed to add value and improve the company’s operations. It helps the company accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk manage-ment, control and governance processes.
Tasked by, and reporting to the Executive Board and Audit Committee, Internal Audit provides an evaluation, through a risk-based approach, of the effectiveness of governance, risk management, and internal control to the organization’s governing body and senior management. Internal Audit also gives assurance that appropriate controls and processes are in place and are operating both effectively and efficiently.
Data protection
OMV respects all relevant international and national data protection laws to protect individual personal rights of all its customers, employees and partners. Even though data protection law mainly protects the data secrecy interests of natural persons, the business and trade secrets of the OMV Group are to be regarded as equally worthy of protection.
Respecting the confidentiality of personal data, OMV only obtains and processes personal data for specified, explicit and legitimate purposes. Personal data are subject to data secrecy and treated as strictly confidential. Personal data are only used for the purpose for which they were collected. Personal data are never provided to any person or company inside or outside OMV without proper authorization. Personal data are never kept longer than for the purpose for which they were collected and they are kept safe from unauthorized access or loss. Data subjects not only have the right to information regarding the personal data being processed, but also the right to disclosure, correction, deletion, restriction of processing and data transfer and to object to data processing.
We foster an awareness of ethical responsibility through-
out the entire Group.
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31
SCOPE
We at OMV and all the people collaborating with us in our daily operations are motivated by high ethical standards and apply them in the various aspects of our day-to-day work. We are confident that our staff will always give their best and we know that we can expect all those working for our organization to respect our principles.
Our Code of Conduct applies in all our Business Segments and consolidated subsidiaries. Additional codes specific to certain segments and countries are welcomed, provided that they harmonize with our Code and that they contribute where necessary to its implementation in greater detail. Our process management systems and our Corporate Directives constitute the mandatory detailed implementation of Group policies. They represent the conscientious translation of the Code of Conduct into practice and form the basis of our monitoring systems.
Our Code of Conduct applies to all our operations worldwide. Our employees, both permanent and tem-porary, and our partners, contractors and all other persons acting in the name of the Group must in the course of their daily work observe all applicable laws and regulations and comply with these principles.
In case of doubt as to appropriate ethical conduct, our employees are required to consult their managers before taking action.
Compliance with the Code of Conduct is mandatory for everyone acting on behalf of our company.
Scope
Media proprietor and publisher:OMV AktiengesellschaftTrabrennstrasse 6–81020 Vienna, [email protected]
Design:The Gentlemen Creatives
Photos:OMV AktiengesellschaftSkills to Succeed Organization
Place of publishing:Vienna
Place of production:Vienna, April 20188th edition
OMV Aktiengesellschaft Trabrennstrasse 6-8 1020 ViennaAustria
30882138_3.docx Page 17
Appendix C: OMV New Zealand’s Proposed EAD Well Locations and three AOI’s in the Taranaki Basin
30882138_3.docx Page 18
Appendix D: Proposed Well Names, Locations and Water Depths
Well Name Water Depth (m) Easting (NZTM) Northing (NZTM) Northern AOI
A 156 1631589 5726591
B 133 1656985 5725352
C 135 1647945 5705768
D 158 1593893 5702617
Central AOI
E 140 1613498 5669767
F 136 1612536 5664757
G 133 1610407 5660872
H 128 1623366 5659874
I 126 1627893 5661191
Southern AOI
J 110 1626985 5591170
K 102 1620964 5570475
L 110 1597705 5564406