Safety

Occidental's commitment to safety unites employees worldwide. Occidental has sustained an excellent safety performance through a comprehensive approach that begins with the establishment of consistent expectations by the company's Board of Directors and management. Our approach includes empowering and training employees and contractors and supporting them with safe work systems, technology, and proactive maintenance and asset integrity programs. For example, under our Stop Work Authority policy we require employees and contractors to halt production, shut down any equipment or stop any job to prevent an accident or environmental incident.

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Occidental's 2015 worldwide employee Injury and Illness Incidence Rate (IIR) of 0.35, which included no employee occupational fatalities, is less than one-eighth of the current U.S. private industry average IIR of 3.2 published by the U.S. Bureau of Labor Statistics. Our employee IIR has been less than 1.0 for 20 consecutive years. Occidental's 2015 employee Days Away, Restricted and Transfer Rate (DART) of 0.21 was significantly less than the 2014 U.S. industry average of 1.7.

 

 

1OSHA's Days Away, Restricted and Transfer (DART) Rate represents the number of cases per 100 full-time employees that resulted in an employee being unable to return to work or perform normal duties the day after an occupational injury or illness.

Employee Injury and Illness Incidence Rates for selected industries

Incidents and cases per 100 workers
(Source: U.S. Bureau of Labor Statistics, 2014) 

Occidental (2015 company data)

0.35

Insurance

0.60

Oil and Gas Extraction

1.30

Chemical Manufacturing

2.30

Mining

2.80

Paper Manufacturing

2.90

All Private Industry

3.20

Construction

3.60

Transportation Equipment Manufacturing

4.70

     

1Comparisons to national or industry averages are based on the most recently published comparable data. The IIR represents the number of recordable injuries and illness per 100 full-time employees as defined by the U.S. Occupational Safety and Health Administration (OSHA).

Our oil and gas segment's unprecedented worldwide employee IIR of 0.12 and contractor IIR of 0.27, combined with the results from other business segments and our corporate offices, contributed to Occidental's continued strong safety performance in 2015. The employee safety performance of Occidental's business segments again compared favorably to other companies, with injury rates far below the average 2014 employee IIRs of their peers in the American Petroleum Institute (API) and the American Chemistry Council (ACC).

Occidental Oman achieved a combined IIR of 0.10 and zero employee injuries while working over 54 million man-hours, which is a record performance since the company started operations in Oman over 30 years ago.  Oxy Qatar had a combined employee and contractor IIR in 2015 of 0.04, which is also an all-time low, with only one recordable injury for its entire workforce.

Health, Environment and Safety (HES) performance is an important factor in the selection of contractors throughout our worldwide supply chain. Contractors working full-time for Occidental have strong safety performance compared to contractors doing similar work for others, based on 2014 U.S. Bureau of Labor Statistics data for the construction sector, which is the closest analog for comparison purposes. Contractors working for Occidental in 2015 achieved an IIR of 0.27, matching the best-ever performance in 2013 and the eighth consecutive year below 1.0. Occidental's 2015 contractor IIR was considerably less than the 2014 IIR of 3.6 for the U.S. construction industry. The 2015 worldwide contractor IIR of Occidental's oil and gas segment, where more than 90 percent of Occidental's contractors work, was more than 67 percent below the average contractor IIRs of its respective API peers.

Recognizing the challenges of current industry economics, Oxy Qatar increased collaboration with its contractor community.  With the objectives of achieving a safer, healthier workplace and reinforcing high expectations for HES performance within the contractor community, Oxy Qatar launched in January 2015, the Contractor HES Scorecard. Contractors are scored against their peers and encouraged to enhance the participation from top leadership as well as front-line personnel in the safety management process.  Companies that were not within the performance category of "Good Standing" attended regular meetings leading to increased employee-to-manager feedback, safety coaching, proactive analysis, and participation in similar programs within the community.

"Our overall HES performance in 2015 was outstanding. We had a few close calls during the year that could have turned out to be safety incidents with slightly changed circumstances, so we are determined not to be complacent in any way… The important thing is that we learn from all of these incidents and near misses, share the lessons, and move forward better prepared. Our ongoing challenge is to continue to improve in 2016 and strive to reach the ultimate goal of an injury-free workplace." Andy Kershaw - President and General Manager of Oxy Qatar

Although the overall safety performance across Occidental's operations in 2015 was strong, the company is committed to continuously improving workplace and contractor safety and preventing any incidents. Occidental's business units actively encourage contractors to improve their HES programs, both in periodic safety meetings where Occidental management discusses HES practices with contractors, and in individual service quality meetings. Potential areas of improvement Occidental pursues include increasing supervision, job safety analysis, equipment inspections and emergency preparedness, particularly in drilling and workover activities. We expect both employees and contractors to uphold Occidental's commitment to safety and health, the environment, and the company's Safety Management System practices.