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Niko Resources Ltd. (Niko) is committed to ensuring the safety and health of our staff and contractors, regulatory compliance, and demonstrating a high level of social and environmental responsibility in all it's activities.
Niko has been progressively implementing its Safety, Health, Environmental and Social Program (SHESP) over the past six years. Coincident with this has been the education of its core field personnel and staffing of key positions to ensure effective implementation of relevant corporate policies and procedures. The SHESP system is fully implemented in India and Bangladesh. All Indian production facilities are ISO 14001 & OHSAS 18001 certified. Initial ISO certification was in 2007 and upgraded in 2008 to OHSAS 18001 - 2007.
Niko's areas of activity expanded significantly in 2008. In addition to its ongoing operations in India and Bangladesh the company now undertaking preliminary exploration activities in Pakistan, Iraq, Madagascar and Indonesia.
This report summarizes SHESP performance in the fourth quarter of 2008.

Edward Sampson, CEO
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William Hornaday, COO |
SHEMS POLICY UPDATE
Niko issued a new Safety, Health, Environment and Social Programs Policy and Vision Statement in August 2007. The new SHESP policy and vision statement does not represent a fundamental change in intent or direction of Niko. The new statement more clearly expresses commitments and responsibilities in regard to occupational safety, health, environment and social performance.
SAFETY, HEALTH, ENVIRONMENT AND SOCIAL PROGRAM STAFFING - 2008
By the end of the fourth quarter 2008, Niko employed a total of 26 HSE employees. HSE responsibilities in Pakistan, Iraq, Madagascar and Indonesia are currently being overseen by Nikoís Corporate Manager SHESP until activity levels warrant permanent staffing.
Safety, Health, Environment & Social Program Staffing - 2008

SAFETY AND ENVIRONMENTAL STATISTICS
No lost time incidents or fatalities were reported across Nikoís operations in 2008. No fatalities have occurred during the past 12 years of Nikoís operations.
Safety and Environmental Incidents - Cumulative 2008

a. Estimates do not include overtime hours worked.
b. RECORDABLE CASES: every occupational death; every non-fatal occupational illness; and those nonfatal occupational injuries which involve one or more of the following: loss of consciousness, restriction of work or motion, transfer to another job, or medical treatment (other than first aid).
NIKO SHESP TRAINING - 2008
INDIA
Internal Training - Cumulative 2008 (Participants)
- Inductions (819)
- OJT Manuals (104)
HEALTH AWARENESS
- Obesity (210)
- Appendicitis (11)
- Heat Stress (14)
- Heart Attack-Prevention (64)
- Personal Hygiene (12)
- Cholera (15)
- Noise Protection (74)
- Blood donation (7)
- Patient handling & transfer training (14)
- CPR & AED (8)
- Food Poisoning (14)
- BA Set Training (4)
- Ergonomics for office workers (31)
- Snake Bite (16)
- How to maintain good health (10)
- Malaria (15)
- Basic First Aid (79)
SAFETY
- Safety Standby (12)
- Permit to Work (36)
- Defensive Driving (32)
- Accident / Incident Investigation (11)
- Ambulance Equipment Awareness. (9)
- Confined Space Safety (27)
- Gas Testing (23)
- Manual material handling (13)
- Electrical Safety (11)
- Chemical Handling (21)
- Basic Fire Fighting & Extinguisher (200)
- Safe Work At Height (19)
- Compressed gas cylinder safety (31)
- LPG (7)
- Search & Rescue (28)
- Life buoy and work vest (7)
- Safe Hot work (11)
- Chemical handling & MSDS (43)
- Waste Management (43)
ENVIRONMENT
- Hazardous Wastes (Management and Handling) Rules, 1989, Amendment Rules 2000 & 2003. (15)
- Environment Protection Act and Rules (10)
- Awareness program on environment conservation (87)
SHEMS & STATUTORY
- ISO-14001 Awareness Program (70)
- OHSAS-18001 Awareness Program (28)
- Emergency Response Plan (11)
- The Oil Mines Regulation Act-1984(10)
- Static and Mobile pressure Vessels (unfired) rules 1981 (12)
- How To Conduct Internal Audit (5)
- Environment Management Plan (15)
- SHEMS Awareness training (34)
- SCBA donning Training (17)
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- Emergency Flood Management (9)
- SHEMS Awareness training (75)
- Safety Policy & Rules (4)
- Presentation on safety day (31)
- Environment Week competition (113)
- Legal requirement under hazardous waste (5)
- Electricity Act (14)
External Training - Cumulative 2008 (Participants)
SHEMS
- Role & Responsibility of MR
- How to make HSE committee more effective
- ISO-14001(Environment Management System) Auditor
HEALTH ,SAFETY & ENVIRONMENT
- Advance Cardiac life support (2)
- International trauma life support (1)
- Stress Management through Yoga (19)
- Behavioral Safety (2)
- Level-II First Aid Training. St. John First Aid Training (28)
- Effective Preventive & Predictive Maintenance (1)
- Organized certification/training for operation of crane for offshore crane operator (1)
- Fire Prevention & Fire Fighting (6)
- Personal Safety and Social Responsibility (2)
- ìInstructor courseî for conducting first aid training (1)
- Motivation for Health, Safety & Productivity (2)
BANGLADESH
Internal Training - Cumulative 2008 (Participants)
- First Aid Training on CPR (3)
External Training - Cumulative 2008 (Participants)
IRAQ
Internal Training - Cumulative 2008 (Participants)
External Training - Cumulative 2008 (Participants)
PAKISTAN, MADAGASCAR, CALGARY (no training)

Niko run basic fire fighting training, 2008
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COMMUNITY PROGRAMS AND SUSTAINABILITY INITIATIVES
INDIA
- Blood donation programme organised at Hazira plant with the help of Surat Raktadan Kendra & Research Centre. 111 persons donated Blood on 1st Oct 2008
- Pulse Polio Program was conducted at Hazira facility and 108 childrenís were vaccinated (10th Feb 2008)
- World Environment Day/Week was celebrated from 30th May to 05th June 2008.
- Niko's HSE Manager presented a lecture on environmental conservation June 2, 2008 (87 students attended).
- Niko supported a debate competition at the Hazira Secondary School June 4, 2008 (22 participants in the debate and 113 in attendance).
- Hazira Sea Beach clean-up done by NIKO Employees, Contractor employees, Hazira Secondary School students and villagers on 4th June (> 200 participants).
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Niko organized Environmental Awareness Campaign for local school children, 2008.
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- Company has sponsored a part time doctor and a part time nurse for Donbosco School, Baroda which runs a charitable trust for the destitute children. Also two First Aid Medical Kits have been donated for the School.
- Planting of 250 ha tidal habitat with mangrove seedlings near Dandi Village, Hazira.
- Advanced first aid training given to four Village School Teachers.
- Provided two emergency resource mobilizations. Emergency response team, medical team, ambulance dispatch on request for community calls on two occasions.
BANGLADESH
- Ongoing program to reduce volume of plastic water bottles in use.
IRAQ, PAKISTAN, MADAGASCAR (No programs)
CALGARY
- On-going use of recycled paper products and promotion of double-sided copying. Annual report to be produced both electronically and on recycled paper in 2009.
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Niko developed 250 ha mangrove plantation near Dandi Village, Hazira, 2008. |

Niko beach cleaning initiative at Hazira in 2008 |
EMPLOYMENT BY GENDER
By the end or the fourth quarter 2008 Niko was employing a workforce of approximately 229 people. Percentage female employment currently ranges between 0% and 28 % across its operations and 10% overall.
Gender Employment - Fourth Quarter 2007

EMPLOYMENT OF NATIONALS
Niko's personnel are dominated by Nationals based in the country of operation. Combined foreign operations employ 97% nationals.
Employment of Nationals - Fourth Quarter 2008

HSE AUDITS & INSPECTION - 2008
HSE PUBLICATIONS / SUBMISSIONS: 2006-2008
- Environmental and Social Impact Assessment for Niko Resources (Kurdistan) Ltd Qara Dagh (Block 10) 2D Seismic Survey. WZA Petroleum Company Ltd/Nokan Group - September 2008.
- 3D Seismic Survey in Offshore Indus Block North Initial Environmental Examination. Hagler Bailly Pakistan - July 2008.
- 3D Seismic Survey in Offshore Indus Block X Initial Environmental Examination. Hagler Bailly Pakistan - July 2008.
- 3D Seismic Survey in Offshore Indus Block Y Initial Environmental Examination. Hagler Bailly Pakistan - July 2008.
- 3D Seismic Survey in Offshore Indus Block Z Initial Environmental Examination. Hagler Bailly Pakistan - July 2008.

- Environmental Impact Assessment & Risk Assessment Study for the Exploratory and Development Drilling in CY-ONN-2003/1 (Cauvery) on shore Block, Tamil Nadu. Vimta Labs Limited, Hyderabad - March 2008.
- Restoration, Plantations and Conservation of Mangroves along the Gulf of Khambat, an initiative by Niko Resources Limited towards Integrity of coastal environment, Gujarat Ecology Commission, Gandhinagar - September 2008
- Risk Assessment - for Propane tank & BF wall as per DGH audit observation. Chilworth Safety & Risk Management Pvt Ltd. - February 2007.
- Environmental Impact Assessment Petroleum Exploration Drilling. Fang, Chiang Mai. International Environmental Management Company Ltd (IEM), Bangkok - January 2007.
- The Mae Soon Oil Field Thailand, Environmental Monitoring and Site Reconnaissance Report. International Environmental Management Company Ltd (IEM), Bangkok - November 2006.
- Quantitative Risk Assessment for Exploratory Drilling of Five wells in Cauvery Block. FICUS-e Logic Private Limited, New Delhi - September 2006.
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- Rapid Environmental Impact Assessment Study: Exploratory Drilling in CY-ONN-2003/1 (Cauvery) Block, Tamil Nadu. Environmental Resource Management (ERM) India Pvt. Ltd., Gurgaon - August 2006.
- Rapid Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) report for proposed Seismic Sur vey in CY-ONN-2003/1 (Cauvery) Block, Tamil Nadu. Environmental Resource Management (ERM) India Pvt. Ltd., Gurgaon - January 2006.
- Risk Assessment and Disaster Management Plan for Exploratory Drilling in CY-ONN ñ2003/1 block in Cauvery Basin; FICUSñe Logic Private Limited, New Delhi - January 2007.
- Fish Tissue Analysis of Fish catch from offshore Hazira Field; Gulf of Khambat; Environmental Resource Management (ERM) India Pvt. Ltd., Gurgaon - June 2006.
- Environmental Impact Assessment (EIA) of Proposed Crude Oil development in Hazira Block of NIKO - GSPC; Environmental Resource Management (ERM) India Pvt. Ltd., Gurgaon - January 2006.
- Emergency Response Plan (ERP) of Proposed Crude Oil Development in Hazira Block of NIKO ñ GSPC; Environmental Resource Management (ERM) India Pvt. Ltd., Gurgaon - January 2006.
- Quantitiave Risk Assessment (QRA) of Proposed Crude Oil Development in Hazira Block of NIKO ñ GSPC; Environmental Resource Management (ERM) India Pvt. Ltd., Gurgaon- January 2006.
- Hazard and Operability Study (HAZOP Study) for Hazira Oil & Gas Facility of Niko Resources Ltd. By M/s TechnoSafe Consultants, New Delhi - February 2007
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