Safety

Safety is one of the basic requirements to ensure the rapid development of an enterprise and the health of its staff. High risks in the oil industry mean that hard work has to be done to ensure safety. In recent years, safety has become the core of our corporate culture.

For four consecutive years, CNPC has launched safety campaigns, i.e. "Safe Operation and Management Year", "Safe Operation Year" and "Safety and Environmental Protection Year", focusing on human-centered safety principles.

We investigated potential risks to safety and environmental protection, strengthening the control of risks at their source. In 2007, RMB 11.7 billion was invested in tackling about 2,000 potential risks such as high-pressure, high-risk or high-sulfur oil/gas wells, illegal construction near pipelines and water pollution. More than 20,000 major sources of danger and pollution are monitored. Compared with the previous year, industrial accidents, fatalities and economic losses were decreased by 18%, 23% and 74% respectively this year.

Starting from the Basis of Operation to Ensure Safety

Based on the requirements specified in national laws and regulations, and according our operational safety requirements, we developed more than 10 management systems including Management of Operational Safety Accidents and Management of Rewards for Reporting Risks. We issued five standards including Grading Rules for Major Danger Sources. In addition, the company employed 29 specialists in different fields to conduct on-site environmental inspections and special checks at offshore areas. It also strengthened supervision and management of safety and environmental protection performance at major fields and sectors, including well control, maintenance of oil refining units, pipeline engineering and offshore operations.

Strengthen the Construction of the Emergency System

To enhance our preventive capacity and accelerate the construction of a comprehensive emergency response system, we further perfected the safety and environmental emergency response mechanism, compiled the General Emergency Response Program and related specialized plans, and established an information issuance mechanism.

To meet the demands of our offshore business and prospecting work in the Bohai Sea, CNPC established the Offshore Emergency Rescue and Response Center to take charge of handling offshore accidents, including rescue, firefighting, oil-spill treatment and key project protection. Headquartered at Caofeidian in the Jidong Oilfield, the center has a vessel service team and three assistance stations in Jifeidian in Hebei, Tanggu in Tianjin and Yingkou in Liaoning, covering emergency relief and precaution work in the Bohai Sea. The center also acts as a supervisor and coordinator, which looks after the offshore emergency relief of subsidiaries, coordinates assistance when offshore accidents of State Level-II or above take place, drafts and revises offshore emergency rescue plans and undertakes external offshore emergency rescue.

In 2007, we formulated the Coordinated Regional Fire-fighting Plan to coordinate companies in the same region in dealing with emergencies. We also improved the professionalism of its firefighters by standardizing their preparations, improving their equipment and skills, upgrading their infrastructure and optimizing resource allocations.

Our Sichuan Oil/Gas Wells Firefighting Company is an emergency response and rescue base that integrates rescue, experimental operations, training and exercises. We reinforced its 13 long-distance pipeline maintenance and rescue centers and 28 maintenance and rescue teams in six regions such as northeastern and northern China, improved its offshore emergency response center and offshore emergency response and rescue exercises, and set up three offshore emergency rescue stations in Yingkou, Caofeidian and Tanggu, which have the capacity to cope with level-2 oil spills.