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On August 14th, the audit experts of China Petroleum Health Safety Environment Audit Center of Beijing (hereinafter referred as CPAC) conducted the second phase audit of the operation of our company's HSE system. This audit was conducted by a combination of document audit and on-site field audit. Compared with the first stage, the scope and content of this audit were more detailed, in-depth and specific.

The audit is divided into two stages, August 14th-16th was the on-site review stage, and August 21th-23th was the document review stage. During the on-site audit stage, audit experts rushed to the company's  Shaanxi Ganshan Department. At the construction sites of the SY8552-1 oil test team and the 50216 drilling team, the audit experts focused on the communication, implementation of the HSE documents in the construction team, and also discussed various hazards and impacts at the operation site, and the operating environment and several major audit items, such as personal protective equipment, high-risk facilities and equipment, hazardous operations and safety control measures, were carefully assessed. In the text review stage, the review experts listened to the company's financial department, marketing department, production department and other departments to report on the HSE work, and at the same time confirmed our company's management manual and procedure documents combined with on-site audit.

At the final meeting, the audit team believed that: the leaders of LHDC and the leaders in charge of various departments attached great importance to the establishment and maintenance of the HSE management system and fulfilled management responsibilities and commitments. The system documents prepared could be combined with the company's actual conditions, were operability, and were well implemented by the front-line construction team. At the same time, the issues raised in the first phase of the review had been rectified and the effect was remarkable. Based on the assessment of the above situation, the audit team found that our company was able to meet the certification requirements within the certification scope and passed the second-stage audit.

At the end of the meeting, Zhao Lin, General Manager of LHDC, made a concluding speech. He first expressed his gratitude to the experts of the audit team for their hard work over the past few days, and pointed out that the fundamental purpose of the establishment of the HSE system was to combine the company’s own actual conditions and integrate the requirements of the system documents specific to actual work, a set of operation systems with clear processes, clear rights and responsibilities, effective supervision and strong guarantees must be formed. Since its establishment, LHDC has always attached great importance to this work, and has made active efforts and achieved certain results. However, the audit still revealed many problems in the company’s management. In the future, it will strengthen the company’s internal audit. It is believed that through the efforts of various parties, the system construction work of LHDC will be improved day by day.