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.

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.

This 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.

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.

With 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.

. 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.

A 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 upword 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.

While 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 responsibility for their personnel, and exerted greater control over various labor services.