The petroleum & petrochemical industry is a high-risk industry, facing HSE challenges in every aspect of production and operation. Safety is one of the basic requirements to ensure the rapid development of our business and the health of our staff. We put safety at the top of our agenda and integrate it in our operations and the entire industry chain. We also launch the "Safety and Environmental Protection Year" campaign on a yearly basis, focusing on human-centered safety principles.

Operational Safety

Based on the requirements specified in national laws and regulations, and according to our operational safety requirements, we have developed more than 10 management systems including Safety Prohibition, Management of Operational Safety Accidents and Management of Rewards for Reporting Risks. Five standards are issued including Grading Rules for Major Danger Sources. We have 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.

To emphasize safety management responsibility, we compile and implement a series of new regulations, including Management Procedures of Operational Safety and Environment Accountability,Risk Control Measures for Operational Safety, Guidance on HSE Responsibilities at JSC Elabuganeft Headquarters, and Implementation Rules for HSE Performance Reviews, etc. We also train and evaluate relevant management people and employees accordingly. To ensure operational compliance, we emphasize HSE accountability, enhance HSE inspection and acceptance management in construction projects, and take corrective measures for violations.

JSC Elabuganeft investigates potential risks to safety, and strengthens the control of risks at their source. Focusing on operational improvement, we establish a risk control mechanism, which is composed of risk classification, full responsibility coverage, and integrated solutions. We pay special attentions to the supervision of safety at key units and operations, such as marine operations. We strictly implement offshore petroleum operation licensing, license registration and job qualification certification systems, take effective safety measures to protect offshore operations from typhoons and storms, and make great efforts to remove major hidden risks such as sparks from flaring, and the accumulation of light crude components in cargo tanks. In addition, we allocate dedicated funds to identifying and correcting hidden safety risks related to pipelines intersecting with each other or subject to surface load, and facilities subject to corrosion and aging.

We upgrade the investigation and treatment of accidents without casualties to the highest-level, and establish effective channels for accident and incident reporting. Meanwhile, we review and address safety issues in relation to oil and gas pipelines. A pipeline safety supervision platform has been in place to enable the uploading and tracking of pipeline information, hazard data, corrective measures and follow-up actions.

Emergency Response

JSC Elabuganeft pays particular attention to forecasting, early warning, and rapid response in our emergency response system, which is distinguished by a unified leadership, but with cross-functional responsibility and coordination. To improve our emergency response system, we revise the emergency response plan for pipeline operation and organize filing and on-site review of the emergency response plans of our affiliated companies.

To boast our capacity in handling various kinds of emergency response force supported by five bases specialized in firefighting, hazardous chemicals, long-distance oil/gas pipelines, and well control and offshore emergency rescue are better organized. JSC Elabuganeft well control emergency response center has been designated for oil/gas field rescue nationwide. To strengthen coordination and cooperation in oil spill response, we have established an integrated emergency response mechanism for resource sharing and joint response in spill emergency and fire prevention, and the development and promotion of spill response technology.

We make unremitting efforts to improve our emergency management system. In 2018, the version 2.0 of our emergency management system was launched, enabling the support system for the Company's emergency platform to leapfrog from the stage of platform building to the stage of deep integration and application, and further enhancing our comprehensive emergency response capabilities.