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The Company continues to optimize governance for sustainable development, and puts forward the philosophy of “always do better” into the enterprise development strategy and daily operations. The Company appoints a specific department to prepare and publish sustainability reports and carry out sustainable development training and exchanges. All the departments and business units participate to promote systematic and standardized management of sustainable development combining its functions and responsibilities, so as to achieve the combination of governance for sustainable development and business management.In 2014, the Company organized special trainings for relevant departments on theoretical and practical knowledge of sustainable development including basic concepts, domestic and international standards,trends, practices and cases studies, which improved the work ability of related personnel and thus more effectively promoted the implementation of sustainable development work of the Company.
Governance for Sustainable Development
Focus on sustainable development
Effective results of improving work standards
In 2014, we conducted activities with respect to improvement of our work standards comprehensively. We established systematically and improved 714 various types of
work standards as work standards of departments; each unit carried out “Five Ones” to be effective, namely: to be effective in each post, each project, each management detail, each technology and each process. The Company completed 502 key tasks and projects in total. The Company also promoted quality improvement, cost reduction and efficiency increase with high standards of work style and execution, and further reinforced basic management, improved work and service standards and increased customer’s satisfaction.
  •    Conduct law compliance training.
  •    Establish a legal risk prevention system
  •    Comply with all laws
  •    Enhance systematic training
  •    Intensify internal control assessment
  •    Continue to optimize the internal control system
  •    Conduct risk management training
  •    Promote the normalization of risk management
  •    Improve risk assessment management
  •    Establish risk control mechanism
  •    Carry out anti-fraud education
  •    Establish reporting platform
  •    Strengthen system improvement
safe production management
By earnestly implementing the policy “Safety First, Prevention Foremost, and Comprehensive Control” and upholding the concept of safety and environmental protection with “Safety and Environmental Protection First, People-orientated and Keep Equipment in Good Condition”, the Company actively constructs safety management of the teams and groups, launches standardization activities for safe production and fully enhances the working standard to lay a solid foundation for safety management and to become an intrinsically safe enterprise.
Performance of safe production
Index Unit Year 2014 Year 2013 Year 2012
Number of production safety accidents case 30 49 59
Number of recordable injury incidents case 18 35 46
Accumulated OSHA ratio % 0.08 0.18 0.24
Accumulated working days lost ratio % 0.71 1.7 2.16
Number of death of employees person 1 0 1
Number of death of contractors person 1 2 0
Occupational health management
The Company attaches great importance to occupational health, formulated the “Occupational Health Management Approach” and established and improved its occupational health management responsibilities system, occupational hazard warning and inform system, occupational hazard monitoring and evaluation management system, occupational health surveillance and records management system. In 2014, the Company completed the detection and evaluation of 135 workplaces exposed to occupational hazard factors, with a completion rate of 100%, and the number of annual new occupational disease is 0. The number of cumulative occupational disease of the Company is 4 from 2007. At the same time, we constantly improve the working condition for employees with reference to the relevant laws, regulations and standards, to provide staff with a more safe and comfortable work environment.
Statistics of occupational health checks of the PRC employees
Index Unit Year 2014 Year 2013 Year 2012
Proportion of completion in inspection of occupational hazard factors % 100 99 98
Proportion of occupational health checks completed % 99.9 99.7 99.6
Number of persons attending occupational health checks* person 5,509 4,448 4,489
Proportion of all staff health check and health records % 99 99 98.2
Environmental protection management
The Company adheres to the sustainable development philosophy of “Green, Clean, Low-carbon and Recycling Economy” and implemented the concept of green and low carbon into every links in its production and operation. The Company pursues clean production and invested RMB11.29 million for environmental protection in total in 2014.the Company invested RMB2.676 million in energy saving and emission reduction. The total energy consumption of the Company was 382,179 tonnes of standard coal, representing a decrease of 0.53% over the same period last year; we achieved energy saving amounting to 23,910 tonnes of standard coal.
Classified statistics of energy and water consumption
Index Unit Year 2014 Year 2013
Electricity 10,000 kWh 1,546.00 1,460.50
Diesel fuel Tonnes 254,362.47 252,798.30
Natural gas Cubic meters 263,836.00 255,063.00
Oil fuel Tonnes 4,182.00 6,663.91
Petroleum Tonnes 688.37 708.12
Engine oil Tonnes 1,582.77 1,640.48
Water Tonnes 1,127,592.5 --
By adhering to the management policy of “Supremacy of credibility, Equipment in Good Condition and Quality Assurance”, the Company improved all levels of quality management organization of the Company to clarify the responsibilities of quality
management. The Company also improved quality management system and continued to improve and achieved the certificate issued by DNV to ensure the appropriateness, effectiveness and operability of the system, and carried out trainings such as “Quality Accident Case Study” and “Professional Technology Training on Quality” in order to enhance the employees’ awareness on quality in the industry and quality risk prevention awareness. In 2014, the Company conducted 708 quality trainings in total with 9,195 participants.
The Company promoted various activities on quality management actively, facilitated the establishment of front-line quality management teams and developed quality management implementation rules and carried out soecial events such as "High-quality for a prosperous enterprise”, “Quality Month” and “Year of Quality and Efficiency” in order to improve service quality and product quality.
Certificates of Quality Management System obtained by the Company
We strive to enhance service capabilities and build brand of COSL and dedicate to provide customers with more efficient services of high quality. As expected by its customers, the Company has top-ranking drilling equipment management over the world with 99.41% of its equipment in good condition and downtime of only 1.28 hours/rig per month. In 2014, we deepened the awareness of common destiny with our customers, and tried to find out rooms for our customers to reduce their costs and improve efficiency, thus we saved 839 drilling rigs days in total for customers and a number of oversea projects were highly valued and recognized by customers.
Mexico HYSY 936 made records during its operation in Mexico and was highly commended by Party A, and received a letter of endorsement from PEMEX.
Norway COSLPioneer ranked first in the comprehensive performance over 22 rigs by STATOIL and was awarded “Rig of the Month” in June.
Indonesia COSL Boss while working in Semai II segment in Indonesia’s sea faced with challenges of
difficult operation with complex projects, but it still maintained good working performance and HSE performance and was highly recognized by MurphySemail Oil Co. Ltd.
The Company adheres to customer demand-oriented and established technological innovation system with the close connection between R&D institutes of the Company and production and research to meet the demand of customers for technical services and improve customer satisfaction. In 2014, the Company invested RMB1.09 billion in technology in total and obtained 142 patents, among which 33 patents were developed by the Company. The rotary steerable drilling and logging while drilling (LWD) system completed joint maritime operation for the first time successfully, deep-water drilling fluid and the application of cementing technology on field made a major breakthrough and was fully equipped with drilling fluid and cementing technology service capacity in water depth of 2,500 meters.
Key performance of technology innovation of the Company (2012-2014)
Index Unit Year 2014 Year 2013 Year 2012
New patents Items 142 158 135
R&D investment RMB10,000 108,984* 72,166 60,080
Road to deep water   Breakthrough in operating depth
  The Company practiced the deep-water strategy actively through establishment of a full deep-water equipment group, research and development of a complete technology system for deep-water exploration and building of a first-class deep-water operations team. At present, the Company has a full range of exploration, development and production service capacity from shallow water to deep water, and is managing and operating 44 rigs, among which 7 are deep-water semi-submersible drilling rigs, forming full deep-water operational capacity in deep water of 750m, 1,500m and 3,000m.
Statistics of employees
Index Unit Year 2014 Year 2013 Year 2012
Rate of signing labour contract % 100 100 100
Social insurance coverage % 100 100 100
Proportion of female employees % 8.6 9.1 9.1
Number of new employees during the reporting period Person 1,871 1,129 752
Number of foreign employees Person 1,286 981 843
Number of PRC employees Person 14,810 12,849 12,148
Number of employees Person 16,096 13,830 12,991
Talent training achievement
For five years, the Comp any built management team, technical team, operational team and international team through establishment of a hierarchical level and differentiating three-dimensional training models based on core development ideas of “More professional, more superior”. At present, there is 1 national leading scientist, 2 specialists of the National Thousand Talents Program, 29 senior professors, 2 technical experts (granted government allowances), 7 CNOOC technical experts, 26 company technical experts, 1 government allowances skills expert (granted government allowances), 2 national technical experts, 11 State-owned enterprise technical experts and 5 company skills experts in the Company.
Personnel training methods   Localization and diversification of employees
New employee training
Technical and skills personnel training
Management personnel training
International talents training
  • Professionalism
  • Management philosophy
  • Corporate culture
  • Corporate Strategy
  • Application and improvement
  • Field practice
  • Consolidating practice
  • Theoretical training
  • Senior management personnel
  • Strategic reserve personnel
  • Front-line team training
  • Exchange and mixed mechanism
  • Corporate training
  • Overseas talents (master) training
With the continuous development of the overseas business, the Company actively promotes the localization and diversification of staff, adheres to equality, freedom, anti-discrimination employment policy and makes efforts to provide opportunities for employment, training and development of the local people. We also promote employees with different cultural backgrounds to respect each other’s religion, customs and personal hobbies and etc., and enhance mutual understanding. By the end of 2014, the number of our foreign employees for overseas business was 1,286, and the localization rate reached 57%.
Localization of overseas employees
Index Unit 2014 2013
Ratio of localization % 57 45
Number of local employees person 1,286 981
The Company actively involved in public charity and supported the development of education in poor areas. Since 2007, the Company has donated RMB12,000,000 to build 12 “COSL Hope Primary Schools” in Yunnan and Hainan provinces, 7 in Yunnan and 5 in Hainan provinces. More than 4,000 students are benefited.
COSL also was awarded "Special Award for 25 years Hope project Contribution“ for its consistent performance of their social responsibility by China Youth Development Foundation and the Special Award of China CSR Honor Roll and Outstanding Corporate Award for social responsibility by China Enterprise Confederation Management Consultation Committee.
COSL Hope Primary School survives in Ludian earthquake
On 3 August 2014, a magnitude 6.5 earthquake occurred in Ludian county of Zhaotong City, Yunnan Province. Two COSL Hope Primary Schools located in hardest hit were in good condition with slight cracking in walls and no damage in main school building. The school put up tents to provide shelter for more than 10 villages. Other 5 COSL Hope Primary Schools located in the earthquake area are not affected at all. No reports on casualties and buildings damage from COSL Hope Primary Schools in earthquake area received. To further improve the recovery of two schools and to aid affected students, the Committee of the Company decided to donate RMB500,000.