Metrics

Metrics Definitions and Methodology

[MDR-M.77b] The measurement of all the metrics below, unless specified, is not validated by an external body other than the assurance provider.

[Entity-specific] [MDR-M.77a, 77c] The metrics for Tier 1 and Tier 2 process safety events are based on the classification of Process Safety Events (PSE) following a tier concept according to API Recommended Practice No. 754 or IOGP Report 456. Tiers 1 and 2 provide lagging indicators on process safety performance, while Tiers 3 and 4 serve as leading indicators.

• Tier 1 PSEs are incidents with greater consequences and represent the most lagging performance indicator within the four-tier approach. This concept is derived from API 754 Recommended Practice. The count of Tier 1 PSEs reflects process safety performance and involves losses of primary containment (LoPC) events with significant consequences. Even when captured within secondary containment, Tier 1 PSEs indicate weaknesses in the barrier system and provide an assessment of the company’s process safety performance. A Tier 1 PSE is an unplanned or uncontrolled release of any material, including non-toxic and non-flammable substances (e.g., steam, hot water, nitrogen, compressed CO₂, or compressed air) from a process that causes significant consequences for employees, the community, or the business.
• Tier 2 PSEs involve LoPC events with lesser consequences compared to Tier 1.

Both Tier 1 and 2 process safety events are reported cumulatively and as a split for our three business segments: Energy, F&F, and Chemicals. These are based on a count reported in the HSSE reporting tool.

[Entity-specific] [MDR-M.77a, 77c] The Process Safety Event Rate (PSER) is calculated as the normalized rate of process safety events to aid comparability over time and between facilities or companies, calculated for Tier 1 and Tier 2 PSEs jointly.

Since there is no uniformly applicable normalization factor for process safety indicators based on facility configuration, the industry uses worker exposure hours, similar to personal injury rates, as a convenient and easily obtained factor. The total hours worked include employees and contractors for applicable company functions within the scope of reporting.

For upstream, hours worked on operated assets are included, while for downstream, hours worked on all operations are considered. Hours worked by corporate functions, including general management and finance at OMV and Petrom, are excluded. Due to the likely low frequency of PSEs, care should be taken when assessing the PSER, as the rates are likely only statistically valid for comparisons at an industry or company level. This ensures the normalized rate accounts for variations in worker exposure hours and supports accurate comparisons. Reporting Formula: [PSER = PSE (Tier 1 + Tier 2)/work hours * 1,000,000