Health and Safety

Protecting the health and safety of our employees and all those who work on our behalf is our highest priority at Chevron. We have sharply cut our rate of incidents and injuries through an intense focus on improving health and safety performance. Regrettably, six people died in 2005 while working on behalf of the company. Any fatality is unacceptable. We are committed to reducing fatalities – and all incidents – to zero.

PT. Chevron Pacific Indonesia employee Mela Erlania during a routine fire-fighting drill at Duri operations in April 2005. The company holds drills at such diverse settings as gas plants, medical buildings and the kindergarten at the company complex in Rumbai.

Safe Operations

As measured by the Total Recordable Incident Rate (TRIR), 2005 was our safest year on record and our seventh straight year of improvement. Over a seven-year period, our workforce TRIR improved more than 70 percent.

To drive safety performance improvement, we set aggressive targets for key safety indicators. In 2005, we met our target to reduce our workforce Days Away From Work Rate (DAFWR). The total on-the-job injury rate improved 20 percent from 2004, and the rate of injuries severe enough to require days away from work improved 30 percent.

Motor vehicle crashes have been a leading cause of fatalities in our industry. We have developed several programs and initiatives to improve road safety. In 2005, one fatality resulted from a motor vehicle crash, compared with six fatalities in 2004.

These improvements also reflect our commitment to operational excellence (OE) and to the continued disciplined integration of OE into everyday operations and activities. For example, our downstream operations have deployed standard processes addressing behavior-based safety, contractor safety management, motor vehicle safety, early incident management and incident investigation.

The Benguela Belize compliant tower and topsides, installed offshore Angola, is one of the tallest structures in the world. Chevron completed the structure within budget, ahead of schedule and in a safe manner. In December 2005, the Offshore Energy Association awarded it Project of the Year.

Motor Vehicle Safety Classifications

Our motor vehicle incident rate increased in 2005.

To help understand the underlying cause, we participated in the development of new classifications for industry motor vehicle incidents through the International Association of Oil & Gas Producers, whose classifications are similar to the injury classifications we currently report. These new metrics will help us understand the causes of the most serious crashes and help us prevent them.