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  Occupational health

At the heart of scientific outlook on development is the concept of putting people first. Putting people first starts with respect for life and healthcare.

We believe that employee health issues are tied immediately up with the morale of our employees. Physical and mental health is a prerequisite to the competency of our employees and also to our corporate competitiveness.

Sinopec has always been pursuing integrated HSE management practices and include the concept of putting people first more in every aspect of our management activities for perfect mix of occupational health, safety and environmental protection.

Sinopec renamed its safety and environmental committee as HSE committee, with a view to placing greater emphasis on occupational health.

Through painstaking efforts made in 2009, Sinopec greatly improved its occupational health performance by reducing annual incidence of occupational disease to below 0.01% without any acute poisoning accidents involving three or more employees throughout the year.

Build up the occupational health system

Sinopec pays much attention to occupational health management and continuously improves its occupational health management system and technical system.

We formulated and implement several actionable occupational health policies according to the national laws and regulations and standards, including “occupational health policy”, “highly toxic substance control policy”, “hydrogen sulfide control policy”, “employee hearing protection policy”, “radiation protection policy” and “high temperature work policy”.

In 2009, Sinopec revised its Occupational Health Regulation (2004) to include more stringent, targeted, actionable and operational requirements concerning workplace monitoring, occupational health supervision, occupational health file and occupational health hazard bulletin. Meanwhile, many other company policies were also revised, including medical insurance policy, occupational health management performance appraisal policy, Sinopec personal protective equipment availability policy (provisional) and workplace snail fever prevention policy.

Greater managerial and supervisory efforts for strict compliance with occupational health policy

Sinopec strictly follows the Occupational Disease Control Law of PR. China and endeavors to raise employee awareness of occupational health laws and regulations and how to prevent occupational diseases.

In practice, much attention is given to compliance with occupational health policy in construction, expansion and reconstruction projects as well as technology introduction projects to ensure 100% compliance and reporting of any occupational hazards and to prevent occupational hazards at the root.

We attach great importance to occupational health supervision and inspection. In 2009, during a company-wide safety and environmental inspection, occupational health officers were assigned to each inspection team and 20 Sinopec companies were examined according to the newly-revised Occupational Health Performance Appraisal Policy. Results showed that all companies under examination paid greater attention to occupational health and further improved their occupational health performance and that the newly-revised Occupational Health Regulation (2009) played an important role in guiding these companies towards a higher level of occupational health performance.

Greater environmental control at workplace to eliminate occupational hazards at the root

Occupational hazards exist mainly in work environment. Safe work environment means improved occupational health.

As such, Sinopec focuses its occupational health efforts on work environment monitoring and control. In 2009, greater efforts were made across the company to identify and monitor occupational hazards at workplace, bringing 90-plus toxic substances and 18 kinds of dust under ongoing monitoring. Both the coverage of workplace occupational hazard monitoring and the measured level of such main occupational hazards as dust, toxic substances and noise were found to have met the local and national standards.

We worked harder to identify and eliminate occupational hazards at workplace to ensure that our workplace meets the occupational health standard and requirements and that employees are physically healthy.

We emphasize availability and accessibility of personal protective equipment. According to the availability criteria, all Sinopec companies provide personal protections to effectively protect operating personnel from dust and toxic substances, with more than two air filters made available for each production plant involving handling of toxic substances, portable toxic gas detectors for workplace where highly toxic substances exist and highly acid and alkali proof protective clothes for those workers dealing with acid and alkali.

  Occupational safety

Occupational safety is the cornerstone of business development. In 2009, we strictly followed a policy of safety first, prevention foremost and comprehensive control. We launched an “I Need Safety” campaign to further identify and eliminate potential safety hazards and strengthen safety management for our contractors. We made remarkable progress in creating a safe environment for production operations and business development.

Complete safety policy, strengthen supervision and ensure effective implementation of safety responsibility system

We revised 13 HSE policies, including accident management and hazard control in light of the actual work conditions in order to further implement HSE management system. We strictly enforced the Work Safety Order according to the safety and environmental supervision policy, organized annual safety and environmental inspections, implemented ad-hoc supervision programs and evaluated major Sinopec companies for HSE performance. HSE videoconference was held each quarter to report accidents, plan for upcoming solutions and make sure that all participants are fully aware of safety and environmental requirements. This ensures effective implementation of the HSE responsibility system at all levels.

Well logging division of Sinopec Jiangsu Oilfield pursues zero defect management in every aspect of safety management

The well logging division of Jiangsu Oilfield endeavors to integrate “I Safe” concept into every aspect of radioactive substance control process. It follows the criteria of zero defect, failure, hazard and accident, since radioactive sources are frequently used for well logging at the oilfield. During 24 years from 1985 to 2009, no radioactive leak incident occurred.br>
This division takes full responsibility for radioactive substance inspections. Over 50 inspections are conducted each year to ensure radioactive substances are kept under control. Meanwhile, safety training programs are frequently conducted for all employees of the division.

TThis division formulated and refined five policies, including Radiation Protection Policy, and revised 34 HSE policies, including Radioactive Substance Control Policy and Well Logging Safety Procedure. Specific, stringent requirements were laid down for procurement, transport, handling, storage and use of radioactive sources and blasting tools.

Safety campaign “I Need Safety” remarkably raises employee safety awareness

Instead of having to comply with the Work Safety Order publicized by Sinopec in July 2007, Sinopec employees became more proactive to pursue personal safety at workplace thanks to a company-wide “I Safe” campaign launched in 2009. br>
Sinopec established a leadership team and published an implementation plan for the campaign. Across the company, over 1,200 safety lectures were delivered, 48,000 emergency drills conducted and over 1,800 safety quizzes held, involving over 440,000 employee participants.

We solicited contributions from all employees that highlighted safety awareness and best practices including video clips and articles, which were then prepared into video discs and pamphlets for distribution to employees at all levels.

Various events and activities were conducted to raise employee safety awareness, including a Safety Month campaign and wintertime 100-day safety competition.

WWith the “I Safe” campaign, a safety-centered environment was created, and employees became more aware of the need to always act with safety in mind.

Eliminate potential safety hazards and make installations and facilities safer to use

We always endeavor to identify and eliminate potential safety hazards by strictly implementing the HSE policy in every aspect of our operations and taking preventive measures before anything goes wrong. br>
. Between 2005 and 2009, 8.202 billion RMB (including 1.512 billion RMB in 2009) invested to eliminate potential safety hazards, thereby significantly raising the level of intrinsic safety of our installations and facilities.

AA full-time fire safety team was set up at Sinopec and fire safety infrastructure improved. The fire safety system is a final resort for ensuring workplace safety in case of industrial accidents. Over the years, we invested enormously to improve fire safety, including investments in fire safety personnel, renovations for fire safety facilities and refining fire safety program. There are currently 12,000 full-time firefighters and over 1,100 firefighting vehicles and gas leakage prevention vehicles in operation across the company.

An emergency rescue helicopter makes a successful maiden flight at Sinopec’s Shengli Oilfield


August 1, 2009, an emergency rescue helicopter made its maiden flight at Shengli Oilfield and safely landed on the parking apron of #3 platform of Offshore Drilling Company being built at #260 well of Chengbei. This successful maiden flight meant that air rescue was made possible for the first time from the offshore drilling platform. This capability represents a critical part of the three-dimensional emergency rescue system of Shengli Oilfield. It now takes only ten minutes to reach the #3 drilling platform for rescue operations via the helicopter, in contrast with two hours waiting time in case of emergency rescue ship.

Safety control in three critical areas


Oilfields upgrading of well control devices and facilities; hazard control for off-shore drilling platforms; upgrading and renovation of electrical installations; low-voltage safety lighting for field operations; increased availability of safety and emergency facilities; improvement of oil & gas production, storage and transport devices against fire safety criteria; emergency vehicles and equipment for fire safety; gas leakage prevention and emergency rescue; upgrading and renovation of blasting and radioactive substance storage/transport facilities; configuration of a fail-safe control system for key equipment; hazard control for fire, explosion and lightning; protection of oil and gas collection and transmission yards, and provision and upgrading of special-purpose hazard detection devices.

Refineries electrical and instrumentation system hazards, lightning and electrostatic protection of large oil tanks; safety of installations and tank farms, fire safety system hazards (water and roads); upgrading of imported fire engines, hazard control in respect of noise, dust, chlorine gas and lab ventilation.

Distribution hazard control for oil dispensers that are found not compliant with tank farm safety criteria (including addition of anti-spillage and electrostatic interlocking systems); renovation of partly exposed underground unloading pump houses and tank farms; renovation of vacuum unloading system; hazard control in railway loading areas (including railway bridges and access roads for fire safety); hazard control for tank farm docks (including ferryboats and fire safety systems); improvement of fire safety access roads, fire/water (foam) system, fire pump houses, fire/water ponds, fire dams and related equipment and facilities that are found not compliant with design criteria for new tank farms.

Build a company-wide emergency rescue system and improve emergency response capabilities

At Sinopec, emergency management is one of our top priorities. It establishes completed and unified emergency management guidance system pword from grassroot in light of the management principle of “the whole staff, whole process, full dimensions and all weather”. Emergency management system was set up at each Sinopec subsidiary.

To ensure better information disclosure for emergency management, we formulated Sinopec External Communications Policy in 2009, a policy designed specifically to improve information disclosure practices.

To improve emergency management practices, we prepared and revised Sinopec Multi-casualty Emergency Response Plan, a plan that consists of an overall emergency response scheme and 17 sublevel schemes covering four categories of incidents: industrial safety incidents, public health incidents, natural disasters and public safety incidents. These schemes, together with the emergency response plans of Sinopec companies, constitute Sinopec emergency response system. While preparing these plans and schemes, we ensured they are legitimate, reasonable, actionable, forward-looking, practical and cost effective.

WWhile allocating and managing emergency response resources, we follow the principle of self-reliance and community involvement to optimize resource allocation. Since most of oilfields and refineries are distant from urban areas and the special characteristics of oil and petrochemical industry mean emergency response resources available from local communities are relatively few, we work hard to ensure that emergency response resources are available and easily accessible when needed.

Improve safety management along the production line with focus on contractors and temporary workers

We follow the contractor responsibility system to eliminate and control risks at the root. We ensure that our contractors fully meet our safety requirements by tightening safety control during project bidding process and by implementing contractor HSE performance appraisal procedures. We regularly publicize any violations of our rules and regulations on the part of contractors in order to ensure their compliance.

We established and implemented a joint safety responsibility system to hold all parties involved in construction projects responsible for any accident on the construction site. The concerning parties may include general contractors, contractors, subcontractors, supervisory companies, and construction companies.

We intensified safety education to ensure that all contractors and their personnel are safety minded. HSE risk management concept was applied in safety management on construction site and workers who were found not qualified were strictly kept out of construction site. We established and continuously improved onsite supervision, inspection and appraisal systems and intensified inspection and supervisory efforts.

We followed the principle that contractors take full

  Environmental protection

Natural environment is where we human beings live; therefore, protecting the natural environment is tantamount to protecting ourselves.

As a responsible major energy and chemical company, Sinopec always concerns itself with environmental protection, pursues clean production, produces clean products, strengthens waste control, and actively develops recycling economy in order to become a greener company.

The global financial crisis put Sinopec in a difficult position in 2009. Despite the daunting challenges, the company worked harder than ever before to pursue environmental protection while ensuring business development, with remarkable achievements made in energy saving, and emission reduction, stack gas desulfurization and below-limit emissions. Industrial water consumption dropped by 3.3% and discharged industrial wastewater decreased by 2.0% based on the 2008 level. The COD level in discharged wastewater dropped by 3.6% and sulfur dioxide emissions decreased by 13.9% compared with the 2008 level, with 96% of wastewater meeting the national discharge standard. No environmental pollution incidents occurred throughout the year. Compared with 2005, COD emissions dropped by 16.3%, and sulfur dioxide emissions dropped by 31.0% in 2009, hitting the emission reduction targets set by the central government for the 11th five-year plan period one year ahead of schedule.

Ensure cleanliness throughout product lifecycle from production to consumption, and reduce emissions with every effort

Sinopec focuses on cleanliness throughout the product lifecycle from production to consumption, endeavors to control and reduce emissions throughout product lifecycle and make greater contribution to a cleaner environment.

Pursue clean production and reduce emissions at the source

Sinopec strives for clean production and works hard to control generation of pollutants at the source.

We continued investing more in environmental protection and environmental hazard control in 2009. Additional investment was made in environmental protection as evidenced by the fact that environmental investment in construction of refineries alone amounted to 600 million RMB. 105 environmental hazards were identified and resolved with capital investment of 360 million RMB in 2009, with focus on air pollution control, sewage control and provision of online monitoring equipment.

We strengthened environmental management on construction sites, supervised and inspected to ensure environmental impact assessment was conducted and HSE policy was fully complied with on every construction site and that new construction projects were all implemented in an environmentally preferable manner.

Online environmental monitoring plan was implemented across the company, and online emission monitoring system was set up at some Sinopec companies to realize real-time emission monitoring.

We addressed environmental issues by evaluating the environmental performance of Sinopec companies, developing and implementing pollution control plans and corrective measures, specifying environmental requirements and criteria and helping them realize below-limit pollutant emissions.

We continued to strive for clean production in every aspect of our operations. In 2009, two Sinopec companies underwent preliminary evaluation, three underwent evaluation and four underwent clean production review. Through these efforts, environmental awareness at Sinopec was significantly raised, management performance remarkably bettered, emissions of main pollutants drastically dropped and energy conservation continuously improved.

At the end of 2009, 18 Sinopec companies, including Zhenhai Refinery, were accredited to ISO14000 standard.

Sinopec reviews the qualification certificates of its suppliers every year, including ISO quality accreditation, environmental certification and special compulsory certification status, in order to challenge suppliers to improve work environment, improve product quality and better protect natural environment.

Produce clean products and reduce emissions on the other end of product lifecycles

Since compulsory elimination of leaded gasoline in China in 2000, the quality of oil products has drastically improved throughout the country, reaching a target within ten years that cost developed countries several decades to achieve. Sinopec made tremendous contribution to this great achievement.

Between 2005 and 2009, Sinopec invested 17.4 billion RMB in oil product quality improvement and equipment upgrading. In 2009, Sinopec began providing clean fuels that meet the national standard III, Shanghai municipal standard IV and Beijing municipal standard IV in 14 provinces and municipalities including Beijing and Shanghai.

In June 2006, the central government promulgated national vehicle diesel oil quality standard III (sulfur content no higher than 350ppm), to be effective as of July 1, 2011. Meanwhile, revision of quality standard for regular diesel oil is also underway. To realize quality upgrading of vehicle diesel oil, Sinopec is actively building hydrogenation refining, cracking and modification plants with capital investment of 6.7 billion RMB.

Technological innovation provides a solid cornerstone for oil product quality upgrading. Focusing on technology development, Sinopec developed a pool of proprietary technologies for main refining and chemical processes, with capabilities to build 10 MTA refineries and 1 MTA ethylene plants using its own proprietary technologies. In recent years, many technological achievements were made due to improvement of R&D system and increased R&D expenditures. Between 2005 and 2009, Sinopec acquired 3,955 domestic patents and 377 foreign patents. As at the end of 2009, Sinopec won a national top technology award and 44 national awards for technical invention and 278 national awards for technological advancement. Sinopec is one of the most technologically capable companies in China.

Following a unique approach to technology development called “ten dragons”, Sinopec successfully developed major technologies covering oil & gas exploration and development, refining, chemicals and chemical fibers, energy conservation, safety and environmental protection. Currently, Sinopec has the capabilities to produce gasoline and diesel oil products that meet Euro IV standard, with greater efforts being made to develop technology for production of gasoline and diesel oil products that meet Euro V. Product quality improvements at Sinopec are mainly driven by self-developed technology.

Sinopec products are highly recognized for their contribution to the 60th National Day celebrations

Over the years, Sinopec provided a great quantity of high-quality special-purpose lubricant and grease products to aerospace and shipbuilding industries in China, winning high recognition of users. In 2009, Sinopec was engaged to develop and produce specialty oil products for use in equipment and floats used during the National Day parade, which met the user requirements. Sinopec Beijing Oil Co., Ltd. refueled the floats during the parade seven times and was thus recognized by the State Assets Supervision and Administration Commission as an advanced organization in supporting 60th National Day Parade.

To contribute to a successful National Day parade, Sinopec improved the stiffness of the carpets for use during the parade, set up an installation team with experience gained from Beijing 2008 Olympic Games, formulated a detailed carpet installation plan and preventive measures against rainfall and finally laid 8,000 square meters carpet on Tian’anmen Rostrum.

SSpecial-purpose high-grade asphalt specially developed by Sinopec for the National Day Parade was applied on Chang An Avenue of Beijing for the first time. With world-class performance in resistance to crack, skid and rut and noise reduction, this product meets the demanding requirements of the National Day parade and everyday traffic and can increase the road service life to about 15 years.

Strengthen waste control and strive for below-limit emissions

The oil production and refining process inevitably generates wastewater, exhaust gases and waste residues. Sinopec has always been working on waste control and minimizing emissions. br>
Over the past year, we made more investment in desulfurization for coal or coke-fired furnaces. As at the end of 2009, stack gas desulfurization projects of all Sinopec refineries received approval for capital investment. Of these projects, 8 proposals were approved in 2009 with approved investment of about 700 million RMB. It is predicted that when these projects are completed, over 200,000 tons of sulfur emissions will be avoided.

In 2009 several large sewage treatment plant deodorization and sewage treatment projects were approved, involving total investment of over 300 million RMB.

After completing the oil & gas recovery project for tank farms and gas stations in Beijing, Tianjin and Hebei Province, Sinopec carried out oil and gas recovery at tank farms and gas stations in Guangdong, Shanghai, Jiangsu and Zhejiang provinces, contributing to the environmental improvement and energy conservation.

No serious leakage of hazardous substances occurred at Sinopec throughout 2009.

DDespite the increased crude oil output, throughput and deterioration (average sulfur content in crude oil rose from 0.9% in 2005 to 1.03% in 2009), we managed to ensure that over 96% of discharged effluents met the discharge standard, reduced COD emissions by 3.6% and dioxide sulfur emissions by 13.9% over the last year, with more remarkable improvement realized in per unit output emission.

Develop recycling economy and turn wastes into valuables

Sinopec actively pursues recycling economy, effective utilization and recycling of resources and comprehensive utilization of side products to realize low consumption, low emissions and high efficiency. br>
Stripped gas from refineries was used for construction of concentration units or ethylene-based ethyl benzene production plants. In 2009, five projects were completed or approved, resulting in total utilization of over 100,000 tons of ethylene out of stripped gas.

Ethylene was used to generate side products of C4 and C5 through cracking process. In 2009, cracking-based full C5 separation was realized in Shanghai, with two other C5 separation projects expected to commence in Tianjin and Yanshan respectively. We are planning to build a commercial-scale C4 plant in Yanshan using self-developed olefin disproportionation technology.

In 2009, 50 lighter hydrocarbon recovery projects were implemented, resulting in annual recovery capacity of about 3.51 million tons.

Through gasification of feedstock used for hydrogen production and recovery of hydrogen-rich gases, about 297,000 tons of naphtha in hydrogen-generating feedstock can be replaced and 137,000 standard cubic meters of hydrogen recovered per hour.

Liquefied gas components were recovered from coking plant. We completed renovation of ten coking plants for greater absorption capacity and stability, resulting in annual liquefied gas recovery capacity of 200,000 tons.

Sinopec established a leadership team and published an implementation plan for the campaign. Across the company, over 1,200 safety lectures were delivered, 48,000 emergency drills conducted and over 1,800 safety quizzes held, involving over 440,000 employee participants.

We solicited contributions from all employees that highlighted safety awareness and best practices including video clips and articles, which were then prepared into video discs and pamphlets for distribution to employees at all levels.

Various events and activities were conducted to raise employee safety awareness, including a Safety Month campaign and wintertime 100-day safety competition.

WWith the “I Safe” campaign, a safety-centered environment was created, and employees became more aware of the need to always act with safety in mind.

Protect and improve the ecological environment

Oil & gas exploration and development and the construction of oil and gas transmission pipelines inevitably cause damage to the ecological environment. Sinopec pays great attention to restoration and rehabilitation of ecosystem around abandoned wells and along the oil and gas pipelines in an effort to minimize the impact of its production and operations on the environment. br>