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.

In 2017, the overall production safety situation of CNOOC Limited was stable while the safety awareness and safety leadership had also been further strengthened. CNOOC Limited always believes that production safety is the basement of its sustainable development, let production safety be the lifeblood of enterprise development, continues to improve production safety and security system, fosters safety culture, strengthens production safety inspection and emergency response capability, and makes efforts to completely safeguard the Company’s production and operation.

Equipment and Facility Integrity Management

In the preliminary stages, the Company took investigation as the starting point, organized experts to participate in preliminary research and feedback on spotted problems, improved intrinsic safety of equipment and facilities. With respect to production and operation, the Company strengthened screening and management efforts targeting potential risks and risk assessment of key facilities. Meanwhile, the Company strengthened its employees’ maintenance capability and timeliness.

In 2017, the Company revised and improved its integrity management system related to equipment and facilities. The revision involved 50 documents and 332 articles. With improved integrity management, both the accident rate for equipment and facilities and breakdown impact rate on production have been reduced. As a result, the risk from equipment and facilities has been brought under control and their growth is sustainable.

Impact Rate of Equipment and Facilities Failure on Output (Output impacted by equipment and facilities/total output planned)

Enhance Safety Emergency Response Capability

CNOOC Limited has been making constant efforts to improve emergency response management mechanism, promote processing capacity of emergency rescue system, and strengthen accident prevention and emergency response capability. In 2017, the Company continued to encourage its affiliated units to refine and improve emergency response plans, further integrated information systems of emergency response management, improved the ICS system, enhanced emergency drills to strengthen the system’s risk mitigation capability and reduce the impact of emergencies as much as possible.

The Company attaches great importance to the security of overseas projects. By strengthening its business communication with international security and emergency rescue organizations (Control Risk, International SOS, etc.), the Company effectively promoted the establishment of work mechanisms for collecting overseas security information and releasing early warnings.