OVERVIEW
HEALTH AND SAFETY PERFORMANCE
ENVIRONMENTAL PERFORMANCE
SOCIAL RESPONSIBILITY
ENVIRONMENTAL PERFORMANCE

As in previous years, environmental performance is reported based on environmental themes which link our activities to our most significant environmental impacts. The environmental performance data included in this report refers to drilling and contracted production operations as well as the AHL operated installations of Scott, AH001 and Triton.

There was an overall improvement in environmental performance between 2001 and 2002. However, performance fell short of a few key targets; namely the quantity of spilled oil, (Evidence -Charts) the use of untested chemicals, and atmospheric emissions of oxides of nitrogen (NOx) and volatile organic compounds (VOC).

COMPLIANCE
AHL did not receive any fines or warnings for non-compliance with existing national or international environmental regulations or treaties in 2002. However, AHL raised 22 Petroleum Operation Notices for discharges to sea mainly related to excursions above produced water limits. (Evidence -Charts)

AQUEOUS DISCHARGE
Controlled discharges of oil in produced water were reduced further in 2002 compared to 2001. The average oil in water concentration across all AHL installations stands at 16 parts per million (ppm) compared to 20 ppm in 2001. Both oil in water concentrations and overall discharges of oil met our 2002 targets. (Evidence -Charts) However, forecasted increases in the volume of produced water mean that we have had to establish a higher oil discharge target for 2003. As indicated in the Compliance section above, oil discharges exceeded 100 ppm on 22 occasions, a significant improvement on 2001.

Oil and synthetic based mud contaminated drill cuttings continued to be shipped to shore for treatment and disposal in 2003 as opposed to discharged to sea.

Improvements to our environmental reporting system revealed that 31 tonnes of detergent used on the Usige Gorm FPSO had not been tested in accordance with newly introduced chemical regulations. The DTI were notified and the chemical was subsequently replaced.

GLOBAL CLIMATE CHANGE
The global warming potential of AHL's production activities reduced by 14% between 2001 and 2002 and by 1% in relation to our performance target. (Evidence -Charts) This improvement was largely due to reduced gas flaring. 76,575 tonnes of gas were flared under AHL consents in 2002 against a target of 80,000 tonnes.

STRATOSPHERIC OZONE DEPLETION
A full halocarbon inventory of all installations was completed for 2002. Typically, quantities of halocarbon are insignificant and limited to galley refrigeration units. However, the AH001 installation still retains Halon gas as a fire suppressant. Two accidental releases of 50kg each occurred during 2002. The standing inventory of Halon was reduced from 3.3 tonnes to 2.7 tonnes in 2002.

ACIDIFICATION AND GROUND-LEVEL OZONE
2002 sulfur dioxide emissions were significantly reduced compared to 2001 and in relation to our 1998-2000 baseline. (Evidence -Charts) This was largely due to increased operational 'uptime' of gas fired power generation and reduced rig and vessel activity. NOx emissions were re-evaluated in 2002 following an extensive offshore monitoring campaign on Scott, AH001 and Triton. Revised estimates suggest that 2002 NOx emissions fell in comparison to 2001 but are still 35% higher than baseline emissions. (Evidence -Charts)

VOC emissions, which combined with NOx can contribute to ground level ozone formation, continued to increase due to increased FPSO production. (Evidence -Charts) Evaporation associated with crude oil loading is the primary source of VOC emissions. The initial 5 year target setting process did not fully incorporate this source of emissions and consequently, the targets are not fully representative of our operations. This target will be revised following a review of our planned FPSO operations.

WASTE MANAGEMENT AND RESOURCE USE
A significant reduction in the quantity of production waste sent to landfills and incinerated was achieved. (Evidence -Charts) This is mainly due to an increased focus on segregation practices particularly by our waste disposal contactor.

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