Quality
Stuart continues to develop and implement processes to learn from its experience and to improve performance in all aspects of its business. Examples include the ongoing development of our Business Management System and the active role being pursued in the Fitness for Purpose initiatives championed by PIRSA (the SA government regulator), particularly as they apply to drilling rigs.
Another example is the Company’s continuing development and implementation of a modern constraint based, planning system to facilitate a rapid and effective response to changing circumstances, in an environment where personnel and equipment resources are scarce, without losing sight of our core objectives. A third example is the use of systematic and objective processes, to assess equipment critically and develop sparing philosophies to ensure minimal impact to business continuity from unforeseen circumstances.
Health and Safety
Stuart is committed to achieving an ongoing high standard of health and safety performance as a central part of its objective of applying industry best practice to its operations. The Company believes this is the most effective way to ensure that risks are managed in such a way so as to be reduced to a level that is as low as reasonably practical.
The health and safety of staff and subcontractors is of crucial importance. Stuart reduces risk exposure in the field by minimizing the number of personnel required to conduct operations and by reducing the distances that they have to drive. In conjunction with conventional initiatives such as journey management systems and auditing compliance with procedures, the Company continues to use technology, such as remote monitoring and control systems together with robust communication networks, to achieve excellent performance in this area.
Stuart aims to achieve safety performance better than the TRCFR industry benchmark of 7 recordable incidents (lost time injuries and medical treatment injuries) per million man hours worked. For 2006/07, the Company and its contractors recorded 156,219 hours worked, with one lost time incident recorded in October 2006 when a drilling contractor employee was injured. This equates to a TRCFR of 6.4. Stuart is working with its Contractors to reduce their incident levels.
Driving in a remote desert environment remains one of our highest risk activities. Stuart is installing a GPS tracking system in its field vehicles which provides information on the location and speed of vehicles and incorporates a 2 way SMS messaging capability, adding to existing satellite phone and radio communication systems, providing operational advantages in conjunction with safety benefits.
Environment and Greenhouse Gas Emissions
Stuart continues to seek ways to reduce the environmental impact of its activities. When carrying out seismic surveys, terrain specific procedures are used to minimize damage from heavy vehicles and active steps are taken to lessen the visual impact of seismic lines. After drilling, restoration of the site lease is audited to ensure that it is returned to as near to original conditions as practical. For production activities, primary and secondary containment in all potentially high spill risk areas is employed together with regular third party audits to ensure the effectiveness of our impact minimization practices.
Stuart’s current production is mostly oil with very low concentrations of the volatile fractions that are the major source of greenhouse gases. Stuart recently commissioned an independent engineering study of the Company’s greenhouse gas emissions to verify its position.
The study covered combustion sources, vented sources and fugitive sources. The results indicated that Stuart’s emissions per unit of production are very low by industry standards. Results will be used as a benchmark to monitor future performance. Stuart’s proposed diesel Fuel Terminal and Refinery project will have a positive impact on greenhouse gas emissions by reducing the volume of road traffic necessary to distribute product when compared to current levels.