INVESTMENT of R$ 4.5 billionin the HSE area

The commitment to health, safety and environment (HSE ) forms part of Petrobras’ strategic planning. In 2008, the company invested R$ 365 million in health, R$ 2.4 billion in safety and R$ 1.7 billion in environmental protection, making a total of R$ 4.5 billion.

Embarcação do Centro de Defesa Ambiental
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Following up its objective of attaining international standards of HSE excellence, Petrobras proceeded with the Excellence in HSE and Climate Change projects, which embrace the principal corporate activities in this area and are part of the Strategic Plan for 2020.

At the end of 2008, 93% of the certifiable units in Brazil and abroad were in compliance with ISO 14001 standards (relating to the environment) and either BS 8800 or OHSAS 18001 standards (relating to health and safety), and were awarded their certification by the respective national or international body. Moreover, 52 operational units in Brazil, Argentina, Ecuador, Peru and the U.S.A. underwent internal management assessment, examining the application of HSE practices at the company.

OPERATIONAL SAFETY

Maintaining the trend established in previous years, and attaining a performance comparable to the international benchmarks for the oil & gas industry, in 2008, Petrobras recorded a reduction to 0.59 in its Frequency Rate of Injuries Resulting in Time Off Work (TFCA), representing the number of accident victims requiring time off work for every million man-hours of exposure to risk, despite the expansion of its operational activities.

Meanwhile, the Fatal Accident Rate (TAF), representing the number of fatalities per 100 million manhours of exposure to risk, went from 2.28, in 2007, to 2.40 in 2008. There were 18 fatalities among the workforce, including the company’s own and outsourced employees. Of these, five occurred in an air crash and four were in traffic accidents, a considerable reduction from the nine traffic accident fatalities recorded in 2007, due to a number of preventive measures taken by the company in this context.

THE ENVIRONMENT

The company’s environmental responsibility activities were focused on increasing the ecological efficiency of its processes and products, with a view to reducing the consumption of natural resources and the impact on the environment.

ATMOSPHERIC EMISSIONS AND CLIMATE CHANGE - Petrobras’ principal objective with regard to dealing with climate change is to reduce the rate of greenhouse gas emissions (GEE) from its processes and products, so as to attain levels that are considered excellent by the global energy sector, thereby contributing to the sustainability of the business and the mitigation of climate change.

The company monitors its atmospheric emissions through its System for Controlling Atmospheric Emissions (Sigea), which measures the principal emissions, notably of GEE (carbon dioxide, methane and nitrogen monoxide) and controlled pollutants (carbon monoxide, sulphur and nitrogen oxides, volatile organic compounds and particle matter), and has kept an updated record since 2002. Keeping track of changes in emissions is essential to the planning of Petrobras’ reduction measures, which give priority to energy efficiency, cutting down on the burning of associated gas, the use of renewable energy sources, and technological research and development.

According to its Prevented Emissions of Greenhouse Gases indicator, the company avoided the emission of 680 thousand tons of carbon dioxide in 2008. Meanwhile, Petrobras has set the goals of avoiding the emission of 2.3 million tons of CO2 in 2009 and 4.5 million tons in 2013. These targets will allow the company to flatten the growth in emissions without inhibiting expansion, given a business as usual scenario.

WATER RESOURCES AND EFFLUENT - There are more than 70 projects under way at Petrobras that relate to the systems of water treatment and distribution, collection and treatment of effluent and reutilization of water in the different company segments and subsidiaries. During 2008, the company drew off a total of 195.2 million m3 of fresh water for use in its operations.

Special mention should be made of the Capuava Refinery (Recap), in São Paulo, the company’s first to achieve zero discharge of effluent. The refinery’s Water Reutilization Plant, inaugurated in 2008, will reduce the water intake by about 0.7 million m3 a year, while the plant’s effluent can be used by Petrobras or other companies in the area for industrial purposes.

The projects at the Henrique Lage (Revap) and Presidente Getúlio Vargas (Repar) refineries, which are scheduled for completion in 2009 and 2011, respectively, will provide a saving of over 7.6 million m3 of water a year.

SOLID WASTE - Petrobras adopts a variety of measures for the management and minimization of solid waste. In 2008, the company imposed a maximum tolerable limit on the generation of hazardous solid waste in its processes. The volume of solid waste generated in 2008 came to a total of 233 thousand tons, well below the limit of 293 thousand tons that had been set for the year, in spite of the increased production of crude and refined oil.

The company is also investing in the development of innovative technology for the reutilization and minimization of solid waste and has sought to increase the proportion that is recycled and reused at its units. In 2008, 30% of the hazardous solid waste was reutilized.

BIOLOGICAL DIVERSITY - Petrobras is developing a number of initiatives for the restoration and preservation of biological diversity. In 2008, the company proceeded with the mapping of sensitive, protected and vulnerable areas within its sphere of influence. The data thus obtained will be fed into a geographically plotted information system (GIS), which will also contain other information regarding biodiversity. This database will help the company to anticipate and resolve any potential impact on biodiversity in the vicinity of its operations.

Furthermore, the company maintains the Petrobras Center of Environmental Excellence (Ceap) in the Amazon, which will receive some R$ 500 million in investment up to 2012. Through the Ceap, partnerships are established with universities, research institutions, government bodies and NGOs, with a view to consolidating information and know-how that will help to minimize the impact of the company’s activities on the ecosystem of the Amazon region.

EMERGENCY READINESS - Petrobras has ten Environmental Protection Centers (CDAs) continually in operation, staffed by trained professionals and equipped with emergency vessels, oil collectors and containment and absorption barriers. There are thirteen CDA outposts, covering several regions of the country. The company also keeps three vessels operating round the clock, to deal with emergencies in Guanabara Bay and off the coasts of the states of São Paulo and Sergipe/Alagoas

During 2008, Petrobras carried out seven regional simulation drills, involving the Brazilian Navy, Civil Defense Corps, fire brigade, state police, environmental bodies, local government and local communities, as well as four large scale drills at its units in Argentina, Colombia, Mexico and Uruguay.

OIL AND OIL PRODUCT SPILLS - The volume of spills in 2008 was 40% lower than the maximum tolerable limit that had been set for the year and was compatible with the oil & gas industry global benchmarks.

HEALTH

Petrobras provides a number of activities to promote good health and well-being among its staff, encouraging beneficial organizational practices and a healthy lifestyle. In 2008, the company organized several initiatives to stimulate a healthy diet, on top of the ongoing promotion of physical activity and campaigns for the control and prevention of the use of tobacco, alcohol and other drugs.

Based on the epidemiological profiles of the employees, the company’s activities include regular individual nutritional evaluation, education in healthy eating habits for staff and their families, and guidance on the nutritional content of the meals served at the units, as well as orientation regarding the hygiene-sanitary requirements at the company’s installations and those of its contractors. These activities embrace all situations in which food is provided by Petrobras, including internal and external events.

The company’s policy regarding HIV/Aids is based on the principles of non-discrimination, confidentiality, counseling and other supportive measures, health education and epidemiological vigilance.

The company monitors the results obtained in the area of health through indicators such as the Proportion of Time Lost (PTP), which records time spent off work by employees due to illness or accidents. In 2008, the PTP recorded a rate of 2.31%.