E&P activities progress in four stages: exploration, development, production and abandonment. Each stage involves risks of injuries and illness, accidents, and impacts on the environment. Giving top priority to managing risks related to health, safety and environment (HSE) in carrying out our business activities, JX Nippon Oil & Gas Exploration has established and is implementing systematic approaches to manage those risks (HSE management system or HSE-MS) based upon internationally recognized standards such as ISO14001 ^※1　and OHSAS18001^※2. Moreover, to further prevent workplace accidents and reduce our environmental impact, we continually improve the HSE-MS and apply it across the entire organization, from the JX Nippon Oil & Gas Exploration headquarters to each office and operation site.

The president and CEO who leads the corporate HSE committee consisting of senior management in the Tokyo headquarters is committed to implement the HSE-MS at all levels within our organization and accordingly, each branch office which manages oil and gas field operations as an operator has established its HSE committee headed by each representative of each branch office.

Integration of the HSE-MS between the Tokyo headquarters and each branch office is achieved though;

• setting annual corporate HSE objectives and targets;
• conducting an annual corporate emergency response exercise between the Tokyo headquarters and a branch office;
• reporting and circulating HSE performance statistics and incident reports within our organization and discussing lessons learnt from each incident occurred;
• conducting an annual corporate HSE audit to a branch office by the Tokyo headquarters;
• holding an annual corporate HSE meeting with HSE and/or operations representatives of each branch offices chaired by the Tokyo headquarters where annual HSE performance is discussed in detail.

Integration of HSE-MS between the Tokyo headquarters and each branch office and commitment by president and CEO in the Tokyo headquarters enhance effective implementation of HSE-MS at each branch office for continual improvement.

Part of our systematic approaches are externally assessed by accredited organizations for ISO14001 and the branch offices in Malaysia and Vietnam obtained the ISO 14001 certificates in 2007.

Note

※1Environmental Management Systems Specification with Guidance for Use

※2Occupational Health and Safety Management Systems Specification

As part of the HSE-MS, JX Nippon Oil & Gas Exploration established a corporate emergency response plan and a structure based on site specific emergency status, and an oil spill response plan. Under the plans our response is organized in a tier structure comprising the accident site, the operation site office, and the company headquarters. Depending on the level of the emergency the necessary organizations and resources are mobilized at each tier to minimize the impact on human life and the environment. The plans are regularly tested for effectiveness.

Emergency drills are performed internally and together with relevant emergency services providers, and improvements to the plans are made as necessary. In order to promptly respond to a major oil spill, we utilize an industry mutual aid organization in Malaysia, and have engaged industry-recognized oil spill response services providers in other countries.