Safety and Environmental Protection

Ensuring safety and minimizing the environmental impact are integral to the Company’s sustainable growth. All along, the Company has upheld the HSE core value concepts of “Safety First, Environment Paramount, Focus on People, and Equipment Integrity”. The Company actively copes with the challenges that its safety production and environmental protection work encounter in a low oil price environment and keeps improving its HSE system management. It cultivates an unique HSE culture with its own characteristics. It works hard to provide both its staff and its contractors with a safe working environment, and to foster first-rate management abilities in production safety.

Safety Inspection

In 2016, the Company organized a superior audit of the HSE management system and special audits of quality, diving contractors, and helicopter contractors. The Company completed full system safety inspections, including the special supervision of production safety, a special safety check on storage tank fields and an annual major check on production safety. For HSE risks in particular units, the Company organized special inspections. Through examinations and inspections, the Company effectively met CNOOC Limited’s management requirements, urged affiliated units to act in accordance with the law, and promoted the continuous improvement of HSE management.

Equipment and Facility Integrity Management

In 2016, CNOOC Limited worked continuously to improve its equipment and facility integrity management system, and it organized an internal audit for integrity management in branch offices. In addition, it carried out in-depth management and control measures on key equipment and facilities, executing a physical examination on 176 pieces of key equipment including submarine pipelines, single-point mooring systems, platform structures, storage tanks and pressure vessels and shafts. They resolved the hidden dangers in two single-point mooring devices and two storage tanks, and they carried out risk evaluations on 62 other pieces of equipment. With improved integrity management, both the accident rate for equipment and facilities and breakdown influence rate on production have been reduced. As a result, the risk of equipment and facilities has been brought under control and their growth is sustainable.

Management of Contractors

In 2016, the Company further strengthened its institutionalized, standardized, and mandatory process control of contractor management, establishing a system for identifying and eliminating factors that were hidden dangers to contractors while supervising the implementation of the system. It reinforced the notification of technical explanations and safety risks of onsite operations which the employing unit gives to contractors. It strictly implemented the Interim Measures of CNOOC on the Accumulative Scoring of Safety and Environmental Protection Accidents of Contractors. By strengthening the equipment check, entrance education, personnel training, plan review, operation permit, and onsite supervision of contractors, and enhancing the field management of contractors’ operations, the Company controlled and reduced risks in operations. With the deeper implementation of the Guide of CNOOC on the Civilized and Safe Behaviors of Contractors, the quality of contractors’ employees was further improved.

Building Emergency Response Capabilities

Based on hazard identification and risk analysis, CNOOC Limited continued to improve its emergency management mechanisms. In 2016, CNOOC Limited further refined the emergency management plan, integrated emergency management information systems, improved the ICS system, and strengthened emergency drills to improve the system’s risk mitigation and reduce the impact of emergencies to the greatest extent possible.

On June 6th, 2016, the Qinhuangdao 32-6 Oilfield of CNOOC Limited held a joint maritime search&rescue and oil spill response exercise with seven agencies including the Tangshan Maritime Safety Administration, Tangshan Port&Shipping Administration, Tangshan Oceanic Administration, Tangshan Agriculture and Animal Husbandry Bureau, Tangshan Border Defense Branch, Tangshan Search and Rescue Center and Tangshan Jingtang Port Oil Spill Emergency Headquarters. Seven ships in total participated in the exercise, including three anchor handling towering supply (AHTS) vessels and four state-owned ships. The exercise lasted for over three hours and included various emergency response drills such as the search and rescue of a man overboard as well as the placement of emergency equipment, an oil containment boom and an oil skimmer during an oil spill.

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