ConocoPhillips
2006 Sustainable Growth Report2006 Sustainable Growth Report
Operate Safely

Safety Performance

Our safety goal is operating each day with zero injuries, illnesses and incidents. We have made substantial progress toward this goal but continue to suffer serious incidents and recognize that safety performance must improve further. While the number of safety incidents has decreased, more of those have resulted in lost workdays.

During 2006, three people died while working for us. That is two more fatalities than in 2005. We deeply regret these incidents and will use the lessons learned from them to enhance the future safety of our operations. For example, a contractor died when the roof of a storage tank collapsed. The learnings from the incident have been incorporated into our requirements for working in storage tanks so that a repeat incident does not occur.

In 2006, nearly half of the ConocoPhillips business units and support organizations for which safety statistics are reported achieved the goal of zero recordable employee injuries. More than one-quarter achieved zero recordable contractor injuries.

Contractor safety remains an important area of emphasis. In the refining and marketing sector, the contractor TRR was reduced by more than 30 percent in 2006 compared with the previous year, following the introduction of a companywide Contractor Health and Safety Standard in 2004. However, in exploration and production operations, the rate increased slightly.

We are re-examining our process safety indicators, both on company and facility levels, to better recognize our operational performance and to incorporate recommendations from recent industry guidance on operations and asset integrity.

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TRR Metrics

A standard measure of workplace safety is the Total Recordable Rate (TRR), which tracks the number of recordable incidents per 200,000 work hours. A recordable injury is a work-related injury that resulted in death, time lost from work, loss of consciousness, or required medical treatment; required a restriction of work; or the transfer of the worker to other tasks.

The refining and marketing sector reduced combined workforce TRR by almost 60 percent in the four years from 2002 to 2006. While exploration, production and midstream operations saw a slight increase in TRR between 2005 and 2006, they achieved a 27 percent reduction during the 2002 to 2006 period. Overall, the company reduced its TRR by almost 40 percent in those four years.

2006 Employee and Contractor TRR Workforce TRR

Company refers to all of ConocoPhillips. Corporate refers to employees working in corporate functions as opposed to the refining and marketing (R&M) or exploration, production (E&P) and midstream business sectors.

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