QHSE Management System of the Company

2.1Guidelines and Objectives


Under the organization of the Company’s manager general, and whereas the communication and elaboration of each functional section and department, the QHSE guidelines of the Company are therefore made (for details, refer to 1.2 article of QHSE Management Manual Issue Order “Guidelines, Objectives and Commitment Issuance”). The QHSE guidelines of the Company include the items such as, to satisfy the laws, legal rules and other requirements, the commitment of constant improving the QHSE management system, to provide the frame for making and evaluating the QHSE objectives, and its conformity with the Company’s objectives.

2.1.2Objectives and Targets

The QHSE objectives are within the frame of the Company’s QHSE guidelines, which will be determined under the annual plan of the Company by selecting suitable technical plotting, according to actual financial capacity, accepting the views and suggestions of each relevant party, and finally evaluated and approved on a regular time basis and in light of the considerations, such as feasibility, measurability, satisfying the requirements of laws and legal regulations, combining the characteristics of both the Company’s products and services, the degree of their dangerous/environmental factors and risks.

For ensuring the accomplishment of the Company’s objectives, the Company has set the QHSE objectives that are issued as a target document to each functional section and level. Objectives, Targets and Scheme Management Procedure will be the criterion for the specific implementation of this matter.

2.2 Planning (Plotting)

The manager general of the Company will organize the plotting for QHSE management system, which is based on the QHSE guidelines and resource identification to guarantee the process needed for realization of QHSE objectives. The content of the plot in this section includes the plot of QHSE management system, and the plot of quality, professional health, safety and environment in the activities of the Company’s products realization.

2.2.1QHSE Management System Plotting

The QHSE management system needs to be plotted in the following substances:

a) When the management system is established and amended pursuant to the standards of each variety;

b) When there are some great changes in the Company’s QHSE guidelines, objectives and organizational structure;

c) When there are some great changes in the Company’s internal and external environment and resources.

2.2.2 Plotting for Dangerous/Environmental Factor Identification, Risk Assessment and Control

It is requested that an overall identification and evaluation shall be conducted on the Company’s provision of products and services, the danger to professional health and safety in the cause of activities, and environment factors, as well as to determine the important dangerous and environment factors so as to let the Company have a solid foundation for establishing and maintaining a professional health, safety and environment management system, providing a benchmark to weigh the achievements in sustainable improvements of its professional health and safety management. In addition, the Company has constituted the Procedure of Management Identification and Evaluation

2.2.3Take Clients as Focus of Concern

In order to show that clients are the concerned focus of the Company and that the purpose of the Company is to give satisfaction to the clients, the Company has established theControl Procedure of Clients Related Process and the Monitory Procedure of Clients’ Satisfaction.

2.2.4 Plotting for Products and Activities

Prior to the provision of product services and activities, the Company shall conduct plotting, for which the standard product services and normal activities are based on the relevant content of “2.5 Operation Control”.

2.2.5 Integrality of Equipment and Facilities

It is planned that the QHSE requirements will be systematically set to the standards on which to design and purchase the equipment and products to be used in the Company’s service operations. These facilities, equipment and products shall be consistent with the purpose required, and conformable to the design technical criterion.

2.2.6 Working Plan

Each section and department of the Company shall be based on the Company’s guidelines, objectives and the requirements of QHSE management system, and combine its own specialties, to make its own annual Working Plan, and to systematically enter the QHSE requirements. The following are the content to form the Working Plan:Health Plan, Environment Plan, Safety Plan and Quality Plan.

2.2.7 Emergency and Response

The Company will make plans for each link and organize regular drilling for dealing with emergent incidents so as to guarantee that all departments in charge of emergency preparation and treatment are aware of their responsibilities and liabilities.

2.2.8 Alternation Management

The Company shall control the alternation of personnel, equipment, process and procedures, as well as plotting (plans) of any kind, to avoid side effect to quality, professional health, safety and environment.

2.3 Responsibility of Management

The manager general of the Company shall be in a systematic way of transparency to control the quality, professional health, safety and environment system, actively participate and push forward the enterprise QHSE culture, and place the QHSE matter in the same important status with other key business objectives.

2.4 Resources Management

2.4.1 Information Management

The internal information of the Company shall be secured for free circulation through effective approaches. It is necessary to keep effective inter-exchange of information with clients, suppliers, relevant government authorities and third parties. It is encouraged to actively take part in various professional organizations and keep contact with them.

2.4.2 Human Resource Management

In order to make effective Management of the Company’s staff and workers, provide proper training, guarantee the competence of personnel who are related to quality, professional health, safety and environment management, the Company has constituted the Control Procedures of Capacity, Consciousness and Training.

2.4.3 Equipment and Facilities Management

Infrastructure and service monitor facilities shall be rationally furnished according to productive business, operation service process, required professional health, safety and environment conditions, which include the following:

a) Facilities that affect professional health, safety and environment;

b) Equipment for process realization needed by operation services;

c) Monitoring and Measuring devices needed in operation process;

d) Equipment and facilities for transportation and communication that support the operation services.

2.4.4 Working Environment Management

For the sake of professional health, safety and environment protection, and meeting the quality requirements, the Company will control the following working environment:

a) The inter-relations of working locations, operation sites and the environment nearby (traffic and production safety, dangerous articles, fire control, garbage disposal, comprehensive control of social security, and so on);

b) Normal working/living conditions and safety protection facilities for staff and workers in the process of production realization;

c) Environmental conditions needed in the realization process of operation services;

d) Necessary conditions (such as equipment storage, operation and safety protection) for normal running of the equipment that is required in realization process of operation services;

e) Working and operation environment (operation samples) in favor of upgrading the consciousness of staff and the image of the Company.

2.5 Operation Control

The Company has paid close attention to quality and harmful/environmental factors recognized in the realization process of products, which include research and development, manufacture, well logging, perforation, geological logging, cast fishing, interpretation of materials and etc., and taken effective control and protective measures according to the QHSE standards to prevent them from happening so as to ensure the realization of the QHSE objectives.

2.5.1 Plotting for Product Realization and Relevant Activities

The Company’s product realization and relevant activities are mainly conducted on the basis of plotting for technical research and development, manufacture of instrument, well logging, perforation, cast fishing, geological logging, and material processing/interpretation services.

2.5.2 Processes Related to Clients

Determination of Requirements Related to Products

Examination and/or approval on requirements related to operation services (products)

Communications with Clients

2.5.3 Design and Development (DD)

Design/development practice is implemented by following the flow that includes not only plotting, input, output, examination and/or approval, validation, modification and confirmation in the process of research and/or development, but also quality, safety risk and environment impact on the continued construction.

2.5.4 Purchase

Based on the requirements of relevant standards, the Company imposes the control management on the selection and assessment of suppliers, purchase process, process information and validation of the products purchased. According to the features of the industry, the four processes shall be carried out in the order of the selection and assessment of suppliers, purchase information, purchase process and the validation of products purchased.

Selection and Assessment of Suppliers

Purchase Information

Validation of Products Purchased

2.5.5 Proceeding of Operation Process

In order to provide satisfactory operation services that can meet the prescribed quality requirements, guarantee the operation process that is closely adapted to the requirements for professional health, safety and environmental management, and avoid the dissatisfaction of such quality, professional health, safety and environmental management in operation services or activities, the documented management procedures shall be made so that the operation services and activities are possibly controlled.

Control of Well Logging, Perforation, Geological Logging, Interpretation on Logging Materials, Cast Fishing and Instrument Manufacturing Process

Management of Safety and Environment

Management of Staff and Workers’ Health

Management of Equipment and Facilities

Confirmation of Process

Identification and Retrospectiveness

Property of Clients

Protection of Products

The Relevant Parties

2.6 Check and Evaluation of Performance

The Company shall verify, through clients’ satisfaction, monitoring and measuring of products, monitoring and measuring of process, performance measuring and monitoring, internal audit, data analysis and improvement, that its products, service and activities accord with the requirements for quality, professional health, safety and environmental management. It shall also rely on the active participation of the entire staff and workers to promote the sustainable improvement of QHSE management system.

2.6.1 Monitory of Clients’ Satisfaction

The Company will get to know the achievements and performance of its management system through monitoring and measuring the degree of satisfaction or un-satisfaction to its clients.

2.6.2 Monitory and Measurement of Products

In order to verify the conformity of products with the requirements, the Company will, based on the arrangements of plotting, impose monitoring and measurement on such aspects as: purchase of products (commissioned processing), raw materials, interpretation results, research and development results (hardware and software), manufacturing of instruments and etc. so as to take measures to constantly improve the products.

2.6.3 Monitory and Measurement of Process

In order to verify the conformity of process, functionality and plotting results of QHSE management system, the Company adopts the approach of regularly classified supervision and examination to monitor and measure processes and activities of the management system so as to take measures for constant improvement on them.

2.6.4 Measurement and Monitory of Performance

The Company sets up, implements and keeps Management Procedure of Process and Performance Monitory, thereby ensuring the regular monitory and measurement of the activities that control the important harmful and environmental factors to the Company.

2.6.5 Control on the Unqualified Products

The Company shall impose the control of unqualified products, including products purchased (commissioned processing), raw materials (for well logging and logging records), interpretation results (of well logging and logging records), research and development results (of hardware and software), instrument manufacturing and etc.

2.6.6 Data Analysis

In order to verify the applicability and effectiveness of the management system, and to evaluate where the management system shall be effectively and constantly improved, the Company collects, determines and analyzes the relevant data (factual materials) of products, processes and system by taking the proper approaches.

2.6.7 Improvement

The Company tries its utmost to constantly enhance the effectiveness of its management system by employing the guidelines, objectives, audit results, data analysis, rectified and preventive measures, and management appraisal.

Constant Improvement on the Effectiveness of the Management System

Rectification Measures

Preventive Measures

Investigation and Settlement of Accident, Incident and Inconformity

Internal Evaluation and Examination


The management system appraisal of the Company will be presided over by the manager general, at least once every year, with its frequency being increased when great changes occur in the internal or external environment of management system.

Such appraisal shall be well plotted and planned, with the content of its implementation being clearly input and date of its implementation well arranged.