16.02.2020

To our stakeholders:

I am pleased to confirm that Oil India Limited reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Sushil Chandra Mishra
Chairman and Managing Director

OIL has always subscribed to the protection of internationally proclaimed Human Rights. It ensures that its employees and communities living in and around its operational areas are not adversely affected by its operations and that there is no danger to life or damage to the environment in any way. It deploys technology which is safe, efficient and employee friendly. Its work and maintenance programmes ensure safety and security of its employees and people living in and around its operational areas. The Company organizes safety training courses and health check-ups round the year to ensure a fit and healthy staff.

Apart of regular internal inspections, Officials from State & Central Pollution Control Board, MOE&F(Ministry of Environment & Forest), DGMS (Director General Mines Safety) authorities, OISD (Oil Industry Safety Directorate) External Safety Audit team members (under MOP&NG) inspect OIL’s installations from time to time.

Institution / Govt. Agency

No. of Audits/ Inspections during 2015 No. of Audits/ Inspections during 2016 No. of Audits/ Inspections during 2017

No. of Audits/ Inspections during 2018

No. of Audits/ Inspections during 2019

State Pollution Control Board 8 Inspections 3 Inspections 9 Inspections 8 Inspections 8 Inspections
MOEF 1 Inspection 2 Inspections 2 Inspections 1 Inspection 1 Inspection
DGMS 97 Inspections 71 Inspections 33 Inspections 05 Inspections 39 Inspections
OISD NIL 5 Audits 2 Audits 1 Audits 5 Audits

2. Ensure that the organization is not complicit in human rights abuses
We at OIL believe that employees are not to be subjected to forced or compulsory labour which is also a fundamental provision of the principle of human rights. The same is also in accordance with UN Universal Declaration of Human Rights and is subject to ILO Core Conventions 29 & 105. We prohibit the deployment of forced labour across our entire operations. For the current reporting period we did not have a single operation or any significant suppliers exposed to the risk of forced or compulsory labour.

Collective bargaining is the protection of the right of workers to organize collectively in organizations of their own choice. We uphold and support the freedom of association of our employees by recognizing and encouraging the right to collective bargaining. The employees’ union engages with the management through structured as well as informal mechanisms.

We also keep a close eye on the operations in which the freedom of association might be at risk. For the last three years we have not been able to identify a single such instance and it speaks volumes about the efficiency of our control system. We have organized discussion sessions with the officers’ association for understanding their basic needs and developing plan of action for acting on those requirements. We ensure all around participation in the events of workers union.

4. Organization supports the elimination of all forms of forced and compulsory labour
OIL believes in voluntary labour and right to work. As per directives of the Government of India, the Company ensures payment of minimum wages to labour. The Company also abides by the strict statutory guidelines laid down by the Mines Safety Directorate, the Industrial Act and other statutory regulations of the Government of India. We prohibit the deployment of forced labour across our entire operations. For the current reporting period we did not have a single operation or any significant suppliers exposed to the risk of forced or compulsory labour.

5. The organization supports effective abolition of child labour
OIL ensures that every single one of its installations is routinely monitored to ensure that no child labour is employed at any of them. We strongly condemn the use of child labour and the nature of our operations that require years of training and experience to carry out are a natural barrier to prevent child labour. We also perform a rigorous process of due diligence before employing suppliers to ensure that there is no incidence of child labour in their operations among other ills.

6. Organization promotes elimination of discrimination in respect of employment
The Company is an equal opportunity employer. There is no discrimination for employment or career progression on the basis of caste, gender, colour or religion. Government guidelines are strictly followed for employment of scheduled castes/scheduled tribes and physically challenged persons.

OIL is well aware of the myriad impacts that its operations have on the Environment. Our business operations by their very nature are prone to negative environmental impacts. We take this fact very seriously and have therefore made a commitment to ourselves and our stakeholders to ensure that we mitigate our environmental impacts to the greatest extent possible. OIL follows the precautionary approach to manage its environmental challenges. We also put a lot of emphasis on control of environmental pollution and conservation of energy and have always adopted a proactive approach to the conservation of the environment. This endeavor of the Company is reflected in the vision of the Company which clearly mentions OIL’s commitment to Safety, Health & Environment.

Following are the existing environmental standards/rules acts enforceable under mandatory regulations and strictly followed by the organization:

 Tolerance Limits prescribed by State Pollution Control Board, Assam and Central Pollution Control Board for effluent discharge.
 Environmental Protection Act, 1986 & Rules.
 Water Act & Rules.
 Air Act & Rules.
 The Batteries (Management & Handling) Rules, 2001.
 The Municipal Solid Waste (Management & Handling) Rules, 2000.
 The Bio-Medical Waste (Management & Handling) Rules, 1998.
 Noise Pollution (Regulation or control) Rules.
 Public Liability Insurance Act & Rules, 1991.
 The Ozone Depleting substances (Regulation & control) Rules, 2000.
 Hazardous Waste (management, handling, & trans boundary movement) rules, 2008

OIL has adopted key environmental management practices, pollution control measures and environmental management systems as crucial mitigation measures. Several Environmental Impact Assessment (EIA) studies have been carried out for all its upcoming projects. The social issues and societal impacts are assessed & measured and mitigation measures are implemented as per the recommendations of the EIA studies.

Some of the key Environment Mitigation Measures Adopted in OIL is detailed below:
 As a measure of safeguarding the environment a policy decision has been taken for mandatory use of Forest Stewardship Council (FSC) Chain of Custody Certified Paper and Print Products in all sphere of OIL, w.e.f. 12.09.2012 and same is followed.
 As part of OIL’s commitment towards National Determined Contributions (NDC) and also to commemorate 60th Foundation Year of OIL, an ambitious project for reducing our Green House Gas (GHG) emission levels has been undertaken by OIL in association with NEIST, Jorhat. The Said project includes mass plantation of 50,000 trees in a scientific manner and reclamation of 30-35 hectors of OIL’s abandoned well sites.

 For judicious use of paper, OIL has adopted a policy wef 18.12.2014 on “Economic Use of Paper in Offices” in all spheres of OIL, as the trees are considered the major source of paper pulp production and injudicious use of paper would create bad impacts on the environment. The basic guidelines of the policy are – To use both side of the paper, Single spacing typings, Policy or other circulars through website instead of paper circulation, switching over to e-form system than manual submission of returns etc and recasting of proforma etc in a Simplified & shortened format.
 Rain Water Harvesting has been made mandatory for all upcoming projects.
 OIL has carried out a full-fledged study on effect of gas flare on surrounding paddy crop and initiated mitigation measures accordingly.
 Green belts are developed and maintained around major installations. Annually 7,000-8,000 trees are planted in different operational areas, survival rate of which is about 80-90%.

OIL’s endeavor to harness Non-conventional Energy sources:

 We, at OIL have installed 13.6 MW & 54 MW Wind Power plants in Jaisalmer district, Rajasthan, which are supplying power to Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL).
 The other major Wind Energy project of OIL is of 54 MW, which is a split project between the states of Gujarat and Madhya Pradesh (16 MW Wind Farm at Patan in Gujarat and 38 MW Wind Farm at Chandgarh in Madhya Pradesh).
 We also installed mega Solar Power Plants of capacity 9 MW and 5 MW in Ramgarh, Jaisalmer, Rajasthan.
 In 2017-18, OIL undertook its fourth Wind energy Power Project of 52.5 MW capacity, which was again a split project with 14.7 MW completed in 2016-17 and remaining 37.8 MW completed in 2017-18.
 The total installed capacity of OIL’s Wind Energy and Solar Energy projects stands at 188.10 MW. OIL generated revenue of Rs. 120.82 Crore in FY 2017-18 from Renewable Sources.

In the above context, the following Environment Mitigation Measures have been adopted in OIL:

 OIL was conferred with QHSE Certificate (Valid from 14.08.2018 to 13.08.2021) by M/s. DNV GL.This QHSE Certificate also covers the requirement of OHSAS 18001:2007 (Health & Safety Management), ISO 14001:2015 (Environmental Management), ISO 9001:2015 (Quality Management), Global Reporting Initiative 2006 (Sustainability Reporting), PAS 55:2008 (Asset Management), OSHA 1910.119 (Process Safety Management), Seveso II Directive – 96/82/EC (Process Safety Management) & ISO 31000:2009 (Risk Management).

 Pilot project of using Bio Diesel fuel in Diesel Engines, is an initiative of OIL towards implementation of Bio-fuel policy of Govt. of India.
 OIL in collaboration with TERI has taken up bioremediation project for treating the hazardous waste.
 In collaboration with Institute of Advanced studies in Science & Technology, Guwahati OIL had taken up a Pilot Project on Phytoremediation, where selected species of plants were planted in oil contaminated plot of land size (30m X 20m) near Jorajan OCS. These plants degraded the hydrocarbon and heavy metal content of the contaminated area was restored to its normalcy – considering the success, OIL is planning to take out more such projects in other areas.
 OIL has undertaken various environmental projects such as bioremediation, GHG emission & carbon footprint mapping, E-Waste management, Integarted Waste Mangement etc in all spheres of OIL .
 Proper enclosures around the flare pits are provided, which helps in combating the effect of heat & light on the crops/environment
 Flare pits are properly designed with multi burner facilities with arrangement of abundant supply of air for proper combustion
 95% of the Produced Formation Water is Recycled to Subsurface for the purpose of maintaining formation pressure
 Water oil clarification plants are installed wherever necessary to restrict the oil content less than 10 ppm
 Solid waste and biomedical waste are disposed as per Municipal Solid Waste Rules & Bio-medical Waste Rules .
 OIL has disposed of 38 tonnes of E waste through Certified Recyclers from different spheres of its activities.
 Hazardous wastes are treated as per “The Hazardous Wastes (Management, Handling and Trans boundary Movement) Rules, 2008, and sent to TSDF facilities (Treatment, Storage and Disposal Facilities), for which OIL has taken Membership
 Oily sludge is recycled through registered recyclers.
 OIL has installed a sludge treatment and recovery plant.
 Lining of drill site waste pits with High Density Poly Ethylene Sheets(HDPE) is carried out
 All Oil Collecting Stations, Gas Collecting Stations and LPG plant are connected with Flare Systems and Closed Blow Down Vessels & safety release flare systems for arresting hydrocarbon emissions
 Floating Roof Tanks are used for Crude Oil Storage Tanks of the Pipeline Department, in order to minimize emission of hydrocarbons
 Noise attenuators/barriers are provided at the source
 Acoustic enclosures are provided around gen sets to reduce noise pollution.
 Personnel Protective Equipments (PPE) like ear muff/plugs are provided to personnel working in noise prone areas.
 Environmental protection measures are safe guarded by monitoring the Environmental parameters with the process of their continual improvement
 Oil India Limited has established a state-of-the-art research facility in its Fields Headquarters in Duliajan, for application of Biotechnology in E&P thrust areas. The Centre, by the name of, “Jaivalaya”, was inaugurated and inducted into the service of the Company on 26th September, 2014.
 New installations are equipped with nonluminous flare system.

In addition, a number of OIL’s facilities are certified by ISO and other certifier agencies. The detailed list is given below.

OIL Installations Certified with [ISO-9001:2008, ISO-14001:2004, OHSAS-18001:2007 & ISO/IEC 17025 :2005]: The following installations/ departments of the Company are ISO/OHSAS/IEC certified
 Pipeline Deptt: (ISO 9001:2008, ISO14001:2004, OHSAS 18001:2007)
 LPG Plant: (ISO 9001:2008, ISO14001:2004, OHSAS 18001:2007)
 Fire Service Deptt: (ISO 9001:2008, ISO14001:2004, OHSAS 18001:2007)
 Power House: (ISO 9001:2008, ISO14001:2004, OHSAS 18001:2007)
 Water Treatment Plant: (ISO 9001:2008, ISO14001:2004, OHSAS 18001:2007)
 Transport Maintenance Workshop: (ISO 9001:2008, ISO14001:2004, OHSAS 18001:2007)
 Medical Deptt. : (ISO 9001:2008, OHSAS 18001:2007)
 Well Logging Workshop: (ISO 9001:2008)
 Central Workshop: (ISO 9001:2008)
 Chemical Deptt.: (ISO 9001:2008)
 ER Deptt.: (ISO 9001:2008)
 L&D Deptt: (ISO 9001:2008)
 Kolkota Office: (ISO 9001:2008)
 R&D Centre of OIL: ISO/IEC 17025 :2005 (NABL Accreditation)

OHSAS-18001: Occupational Health & Safety Management System
ISO-9001: Quality Management System
ISO: 14001: Environment Management System
ISO/IEC 17025: Competency of Testing and Calibration Laboratories
(NABL: National Accreditation Board for Testing and Calibration Laboratories)

Oil India Limited is a signatory to Integrity pact with Transparency international for following strict & transparent policies. OIL endeavors to work against corruption in all its forms through well-defined Whistle Blower Policy. The policy provides all the employees with free access to the Management in case they observe unethical and improper practices or any other wrongful conduct in the Company and to prohibit managerial personnel from taking any adverse personal action against those employees.

Oil India Limited has also adopted a Conduct Discipline & Appeal Rules and any unethical behaviour is construed as misconduct. An employee violating these codes is subjected to investigation and appropriate action. Vigilance cell of the Company looks into any such misdoings for investigations.