Safety and Environmental Protection

CNOOC Limited regards safety and environmental protection as a basic requirement for sustainable development of the Company. The Company insists on incorporating safety and environmental protection principles in the process of production, operation and management, and adopts strict measures to guarantee operational safety.

Safety Inspection

In 2015, the Company further optimized its system audits and specialized inspections. The problems have been classified by risk categories and the audit results shared company-wide. The effective sharing of experience has promoted the construction and improvement of the HSE system for all units. Meanwhile, the Company has incorporated various identified potential risks into the CNOOC Limited Hidden Danger Screening and Managing System and followed up on the rectification process. We have completed four company-wide oil spill risk screening activities to identify and rectify potential risks in a timely manner, which effectively prevented and controlled oil-spill risks.

With screening systems for major sources of hazards and potential risks, the Company has made sure the hidden danger reporting channel covers sources of risks in all business units. We are fully aware of the status of the screening and rectification progress in all our units and have put in place measures to pin responsibility for the rectification, as well as measures, funds, time schedules, and plans for all reported potential risks.

After the especially serious explosion in Binhai New District of Tianjin on August 12, 2015, the Company initiated measures to check operational safety across all systems and launched special rectification campaigns to ensure the safety of hazardous chemical substance, and of inflammable and explosive materials. It strengthened efforts to screen and manage potential risks in key branches and subsidiaries. It actively promoted the application of information technology in safety control and encouraged business units to take the initiative to use information-based means to build and improve their hidden danger management systems, thus improving the management capacities of branches and subsidiaries.

Nexen Long Lake Emulsion Leakage Accident

On 15 July 2015, an emulsion leak from a pipeline was discovered within Nexen’s Long Lake operations, located in the south of Fort McMurray, Alberta, Canada. The estimated size of the leak was 5,000 cubic meters over an area of approximately 21,900 m2 mostly within a compacted pipeline corridor. There were no injuries due to this incident. The affected wells were suspended and Nexen’s emergency response plan was activated. The Company places great emphasis on production safety and has taken measures to minimize the spill’s impact to the environment and wildlife.

Through organizing press conferences and media visits to the leakage site, Nexen sought to communicate actively with the public, media, local residents, and other stakeholders in a timely manner. In addition, information on the cleaning up and its progression was updated regularly on Nexen’s website.

Since the incident, the Company has been working together with relevant regulatory agencies in its conduct of clean-up and remediation work at the spill site. Nexen is cooperating with the investigation of the regulatory agencies. The majority of the released bitumen in the spill area has been safely removed. Further continued remediation and clean-up work is underway and will be carried out in compliance with applicable regulatory requirements.

Equipment and Facility Integrity Management

In 2015, the Company put in place an equipment and facility integration management system, while seeking to tighten the control on several critical equipment and facilities and conducting a “health check-up” for 95 critical facilities, including subsea pipelines, single-point mooring systems, platform structures, storage tanks, and wellbores. The Company eliminated potential hazard for two storage tanks and four submarine pipelines, and performed risk assessment for 34 subsea pipelines, 11 platforms, and 40 wells. We continued to extend our integrity management process to the design and construction stages. For example, we conducted an integrity review of the design plans of 9 new projects and gave more than 300 suggestions of the production period to control risks right from the very beginning of the process.

Through the effective implementation of the integrity management system, the Company saw a record low impact rate of equipment and facilities failure on output, which means an improved safety level for equipment and facilities.

Management of Contractors

The Company continued to strengthen management of project contractors, including HSE qualification reviews for contractors, HSE plan review, HSE management for site operations, and HSE performance summary. Aimed at high-risk contractors, the Company launched special management reviews of 11 diving contractors and technical reviews of three helicopter contractors’ 35 helicopters at 12 bases to ensure they conform to the Company’s HSE management requirements.

For its overseas operations, the Company abides strictly by the environmental protection rules and criteria set by the host countries, and strengthens training and guidance for local contractors. In 2015, CNOOC Uganda Limited further improved its HSE management for contractors. It sought to enhance comprehensively its HSE performance throughout the whole process, from preliminary review of contractor qualifications to contract implementation, and from assisting contractors to better manage HSE to strict on-site supervision and inspection. As a result, CNOOC Uganda Limited continued its sound record in health, safety, and environmental protection.

Enhancing Emergency Response Capabilities

In 2015, the Company kept its key focus on the building of maritime emergency mobile command communications system and remained committed to multiple-point joint deployment and unified management across headquarters, branches, and comprehensive emergency management platforms, to ensure smooth communications for maritime emergency treatment and to promote emergency response capabilities for all branches. Currently, the maritime emergency management system is online. CNOOC Limited’s mobile emergency rescue vessels can be deployed to Bohai, East China Sea, Eastern South China Sea, and Western South China Sea.

At the end of 2014, China National Petroleum Corporation (CNPC), Sinopec, and CNOOC Limited signed a Strategic Alliance Agreement on Oil Spill Emergency Response in Tianjin, and formed an Emergency Rescue Linkage and Coordination Group under the terms of the agreement. In 2015, the Company further improved the emergency linkage mechanism and established a management platform for emergency linkage resources across the three oil companies. This platform divides the operations areas of the three parties into 15 regions, including 11 onshore regions and four offshore ones. The emergency rescue teams and deployable materials and equipment for emergency rescue are registered and coordinated in a unified manner and are used based on regions.

In terms of emergency response capabilities, building on the original six oil-spill emergency response bases, the Company added the Huizhou comprehensive base and Hengqin base. It also started building the Dongying and Daishan bases, and extended the Weizhou Island base. In the same period, the Company actively promoted the construction of environmental response vessels, taking the emergency response capacities based on emergency bases and special environment enforcement vessels in China's territorial waters to a new level. In addition, the Company continued to equip oil and gas fields with emergency equipment and facilities to tack oil spills and hold oil spill emergency drills periodically.

With regard to typhoon response management, the Company deployed helicopters in 1,105 sorties, deployed vessels on 33 voyages, and mobilized and demobilized 23,078 workers during the period of this report. There were no casualties caused by typhoons.

In the period of this report, CNOOC International revamped their emergency management plans, among which CNOOC Iraq Limited and CNOOC Exploration & Production Nigeria Limited revamped and improved their emergency evacuation and hostage crisis response plans, and CNOOC Uganda Limited detailed plans for compiling oil spill countermeasures. In the same period, the Company maintained the global emergency resources management system and the overseas personnel dynamic management system, enabling effective management of headquarters and overseas subsidiaries with regard to staff, emergency resources, plans, drills, and training.

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