Safe and Stable Operation
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3.1 HSE Management System

We attach great importance to HSE and implement the HSE management system throughout the company.

We keep improving the HSE management system that covers the whole production process and everyone from top management to grassroots operators. The person at the post, who is required to sign a letter of commitment, answers for safe operation of the post. We organize annual HSE examination and ad-hoc inspection to review HSE performance of key subsidiaries.

In 2011, we developed and implemented four regulations including management onsite guidance. We put into practice "Seven Remembers and Seven Don'ts" for site operations, invited foreign HSE experts to help identify safety problems and work on solutions, and sent expert groups to subsidiaries that were newly-established or weak in HSE management, to provide tailor-made support and advice.

3.2 Intrinsic Safety

For high risk industries like energy industry, any neglect of work, irregular operation, potential hazard might cause accidents, leading to lose of properties or even people's lives. We have made enormous efforts to enhance safety awareness among staff, site safety management and potential hazard control, in order to develop into an intrinsically safe company. In 2011, there were 6 reported accidents, one fewer than last year and there was one death, the same as last year. There were no accidents that needed to be reported to State Administration of Work Safety, Ministry of Environmental Protection or State-owned Assets Supervision and Administration Commission of the State Council.

◎ "I Safe"

People are the most critical link in production and operation. Focusing on forging a safety-oriented corporate culture, we make major efforts to motivate staff involvement in ensuring safe production.

The year of 2011 is the third year of "I Safe" campaign. We compiled a collection of good examples during the past three years for every employee to follow, and encouraged searching of weak links, with 170,000 weak links found out and nearly 120,000 pieces of advice given. By participating in "I Safe" activities, staff's safety awareness has been enhanced, their sense of responsibility sharpened, and unsafe behavior enormously reduced. In 2011, the number of reported accidents and that of reported deaths fell by 38.9% and 57.1% respectively compared with 2008.

◎ On-Site Safety Management

After analyzing past accidents, we have found out that command and operation against rules and violation of labor discipline are the primary causes of accidents, and most accidents take place in direct operations. To address these problems, we have developed and put into practice Sinopec Ban on Irregular Behavior in Production. We strictly follow regulations on operation license and safety checking, and have taken concrete measures to guard against occurrence of accidents.

In 2011, we continued to strengthen site supervision of key facilities and locations during special period and special operations. In refining and petrochemical subsidiaries, we set 240 positions of grassroots safety supervisors. Requirements of "Seven Remembers and Seven Don'ts" were introduced to site operations. The emphasis of safety management shifted to the grassroots level. Efforts were made to ensure thorough investigation and proper handling of accidents. Two heads of subsidiaries were held accountable for accidents.

◎ Potential Hazard Control

Potential hazards, if happening, could undermine safe production. Therefore, potential hazard control is one of our principal ways to lower accident rate. We always ensure funding for potential hazard control in making the annual budget. We have formulated Regulations on Potential Hazard Control Project and strictly follow it in daily work. We apply 4W management to potential hazard control projects, which means to define what to be done to improve safety management, where the fund comes from, who is in charge and when the project should be completed. With many years of input of manpower and funding, all production facilities have realized safe, stable, longtime and optimal operation, and we have achieved a higher level of intrinsic safety.


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