2008 ESS EXCELLENCE AWARD WINNEROil and Gas Industry

ESS ● T : 800 .999 .5009 o r 480 . 346 .5500 ● F : 480 .346 .5599 ● w ww .ess-home.com

The Challenge ► Compliance with HSE best practices and

international standards for CSR. ► Standardization and optimization of HSE

data management across global enterprise. ► Measured improvements in safety and

environmental management results.

The Solution ► Essential Air ► Essential Chemical Inventory ► Essential Compliance Manager ► Essential FEMS ► Essential Industrial Hygiene ► Essential Emergency ► Essential MSDS Manager ► Essential Task ManagerTM ► Essential Waste ► Essential Water The Results

► Successfully rolled out unified HSE system serving all 79 CNPC subsidiaries worldwide and trained thousands of users.

► Created centralized, scientific and uniform HSE information management system.

► Audited and input 1.6 million pieces of data. ► Stronger interdepartmental cooperation and

communication with lower management costs due to streamlined work processes

CNPC Launches HSE Information System at PetroChina as

Foundation for World-Class Sustainability The China National Petroleum Corporation (CNPC) is one of the world’s largest petroleum and chemical companies with proven reserves of 3.7 billion barrels of oil equivalent, dozens of international exploration and production projects and over a million employees around the globe. CNPC’ success in providing a stable energy supply to meet society’s growing demands is matched by its strong commitment to corporate social responsibility and sustainable development. CNPC recognizes Health, Safety and Environmental (HSE) management as central to its continued global growth and position as a leading corporate citizen.

In 2004, CNPC engaged IBM Global Services to find and implement a world-class HSE Management Information System (MIS) that would enhance safety and environmental protection by instituting industry best practices and consolidating the HSE work infrastructure. IBM conducted extensive due diligence and, by 2005, CNPC had selected Essential Suite software from ESS as its global platform for HSE. The new system was intended to balance information symmetry across CNPC, enable localized HSE management and strengthen decision-making by the governance team.

CNPC took a holistic global approach as it prepared to implement its new HSE MIS – working with IBM to deploy 10 Essential Suite modules at once into multiple facilities across China – in order to maximize the advantages of the comprehensive, integrated platform. IBM arranged for the ESS software to be translated into Mandarin and tailored to meet specialized CNPC’ requirements.

In 2006-2007, PetroChina (a CNPC subsidiary) became the first part of CNPC to deploy ESS’ Essential Suite. Its implementation represented the most extensive enterprise-wide HSE compliance and risk management software deployment of its kind in China. ESS' integrated software platform enabled PetroChina – the world's largest company by market capitalization – to drive process improvements that boosted productivity, generated time/cost savings and offered support to management decision-makers. The program’s success at PetroChina prompted CNPC to undertake an enterprise-wide roll-out of Essential Suite throughout its global operations.

Today, Essential Suite has been systematically and successfully deployed to all of CNPC’ 79 subsidiaries, 1,900 subunits and 18,000 basic units. Thousands of users have been trained and 1.6 million pieces of data have been audited and entered into the system.

Continued on back

2008 ESS EXCELLENCE AWARD WINNEROil and Gas Industry

ESS ● T : 800 .999 .5009 o r 480 . 346 .5500 ● F : 480 .346 .5599 ● w ww .ess-home.com

ESS Essential Suite software localized in Chinese.

In 2007, CNPC celebrated its “Safety and Environmental Protection Year” and instituted continued improvements in HSE management by strengthening accountability, reinforcing system standardization, issuing new regulations, enhancing employee training, and investing in a supportive corporate culture. The results were outstanding – including, for example, a sharp reduction in the number of industrial accidents and no major incidents of environmental pollution.* At PetroChina, progress was tracked using the company’s new HSE information system, built on ESS’ Essential Suite.

Health Management – A total of 31,569 hazardous workplaces were brought under inspection with 25,640 pieces of related data documented in the HSE information system; a total of 136,782 employees are under occupational health examination with 108,980 inspection records tracked in the MIS.

Safety Management – In 2007, CNPC documented 197,241 hazardous factors, 2,672 hidden hazards, and data about their elimination or control was entered into Essential Suite.

Environmental Management – The new HSE MIS also provides access to up-to-date data for air, water and waste emission status and calculations.

For CNPC, the benefits of the new HSE MIS include:

▪ Improved workload distribution and cooperation across enterprise because system empowers localized HSE management and communication.

▪ More efficient data collection and utilization due to improved data integration and standardization, sharing and mining.

▪ Enhanced data value and decision-making using analytic tools that provide visualized, detailed, multi-dimensional and expressive data models.

▪ Increased productivity now that employees are relieved of trivial accounting tasks and free to address higher-value priorities.

▪ Consistency of actions required for HSE best practices is enforced by alignment of information system with Plan, Do, Check, Act methodologies

▪ Assured continuity/reliability of HSE management across the enterprise thanks to systemic tools, historic data, online resources, etc.

“PetroChina has made great effort in the promotion of information technology by introducing Essential Suite in 2005. Through enterprise-level implementation of the software, PetroChina has realized detailed, scientific and normalized HSE management… significantly improving information sharing, information management efficiencies and escalating information management to a new height,” said Mr. Gao YunSheng during his presentation at ESS EXPO.08 in Phoenix.

Successful implementation of the HSE MIS across CNPC has proved advantageous not only to executive management, HSE departments and other operational segments but also for the company’s basic information management construction, HSE work processes and business decision making.

ESS is proud to provide the software platform for the CNPC HSE information system, helping this global industry leader make HSE into a strong foundation for corporate social responsibility and sustainability.

* 2007 CNPC Corporate Social Responsibility Report, pages 22-25; and 2007 CNPC Annual Report, page 14.

CNPC’ PetroChina HSE Management Information System Continued from front