Verified Site Report

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1 Verified Site Report BP Zhuhai Chemical Company Limited 2008 BPZ Plant Issue date: March 2009 Verified by: BSI Contact: Sunny Wu (Quality Systems Coordinator)

2 Table of Content 1. Foreword 2. Introduction 3. Description of our operations 4. Identification and management of environmental impacts 5. Our impacts and performance 2 20

3 1. Foreword The BP Zhuhai Chemical Co., Ltd. is committed to effective management of health, safety, security and environmental (HSSE) issues and responsible stewardship of the environment and natural resources. This commitment is demonstrated through the day-to-day emphasis on employee safety and protection of the environment. This emphasis is realized through the implementation of an OMS (Operating Management System), which the Golden Rules of Safety is included and widespread communication of BP s vision of no accidents, no harm to people and no damage to the environment is included, too. The BPZ site programs have addressed the BP Golden Rules of Safety (Refining & Marketing compliance indicators) addressing high risk activities. 3 20

4 2. Introduction 2.1 Group policy BPZ is 85% owned by BP and as such BPZ aims to comply with group policies. Essentially the BP group aspires to achieve the following: No Accidents No harm to people No damage to the environment The BP group policy is endorsed by various Board members including the CEO. The full text of this policy can be seen in the BPZ General Safety Rules handbook (all employees and contractors receive a copy of this book) and the BP corporate document Local Operating Management System Handbook (in BPZ website).. Scanned Page 3 of General Safety Rules which owned by all BPZ employees and contractors are here attached: 4 20

5 2.2. Environment policy: We will identify material, processes, products and wastes that may cause risk on environment and implement measures to avoid, reduce or control the impact. We recognize that there are technical and economic factors that make this a difficult balance that must be managed. We will continually raise the awareness of environment of our employee and contract staff through provision of training, awareness sessions and other campaigns. Scanned business and environmental policies posted in the plant are attached overleaf: The business and environmental policy are endorsed by BPZ s management team and are posted throughout the plant OMS: The OMS is used to manage and improve HSSE performance. The BPZ OMS has been externally verified to meet the requirements of the ISO The System details the responsibilities of management, employees, and contractors for managing risk and improving performance. The overall responsibility for HSSE management lies with the Works General Manager, while the HSSE manager is responsible for oversight of the HSSE and the compliance program. As is made clear in the Local Operating Management Handbook documentation, all employees and contractors working at the BPZ are directly responsible for HSSE performance. Both ISO14001 and OMS follow the continual improvement cycle of Plan, Do, Check and Action, in OMS it specifies as Intent, Risk Assessment & Prioritization, Planning & Control, Implementation & Operation, Measurement, Evaluation & Corrective Action, Management Review & Improvement. 5 20

6 The training and awareness requirements of the HSSE help to ensure that all Employees, whether administrative, manufacturing, or support staff, consider the potential Health and safety risks, environmental impacts and legal requirements of their particular Jobs and what to do to minimize impacts and deliver compliance. This awareness is achieved through education, training, and experience, and is supported by HSSE and operational procedures, work practices, monitoring and measuring, and auditing. The efficacy of these systems is verified through internal and external audits. 6 20

7 3. Description of our operations 3. 1 BP Zhuhai Chemical Company Limited (BPZ) is the first Sino-foreign joint venture in producing and selling PTA product in China. BP owns 85% of the shares and Fuhua owns 15% of the shares. BPZ, located in Zhuihai Gaolan Port Economic Zone, Guangdong Province of China, produces a single product, Purified Terephthalic Acid (PTA), which is the primary and preferred raw material in the production of polyester fibers, resins, films, and container resins. Customers are primarily located in the South and Central China. China and worldwidedemand for PTA is growing and is expected to be strong in the foreseeable future. The facility occupies 400,000m2 with an approximate of 250 BP staffs and an additional of 300 contractors. BPZ's first phase successful commissioning started in Jan PTA #2 started construction in June 2006 and began to feed-in to operate in the end of December At full operation rate, the total annual production capacity is 1,400,000 tons, making BPZ one of the largest PTA plants in China. A map of BPZ s location in China 7 20

8 3.2 BP and its employees strive to maintain the facility s reputation as a responsible Neighbor. Employees volunteer their time with a variety of community outreach programs. These include educational and environmental activities, as well as support of local Charitable organizations. BP complements these efforts with targeted financial support and equipment donations in support of education. BPZ adopts BP's most advanced technology in PTA manufacturing. In the first year of operation, it achieved accreditation of ISO9001, ISO and OHSAS Compared with traditional technology, PTA #2 plant reaches the top efficiency of energy in terms of environmental protection and energy conservation. The unit energy consumption of PTA #2 attained further improvement on basis of 40% reduction of PTA #1 which is compared with traditional technology. Regarding to pollution control, newly developed PTA technology that is in world s leadership is able to minimize the environment impact to the lowest level. Compared with traditional technology, PTA #2 can reduce green-house gas by 65%, liquid waste emission by 75% and solid waste (TOC) by 40%. 3.3 During 2008, BPZ had the following achievements in social activities: 8 20

9 Community investment programs: Environmental Leadership Summer Camp (Picture 5)! " "!! # $ % &' % ( %) * &' $ +, " % " & $ +, %+$ &' % &'! - Scholarship for Porverty-Sticken University Students (Picture 2 shown on Page 8) Donation of Sichuan Earthquake: 100krmb by company, 81krmb by employees (Picture 3 on Page 9) Road safety adv. campaign in Zhuhai city (Picture 4 on Page 9) Awards by government: 2008 Top 100 Enterprises and 100 Manufacturers in Guangdong (Picture 1 shown on Page 8) Active engagement in Road Safety Award Awards received: BP Zhuhai President, Mr. Dan Leonardi was awarded 2007 Zhuhai Economic Figure Energy Conservation and Pollution Control Award for BP Zhuhai s outstanding performance in energy conservation and pollution control. As recognition for its contribution to the community, BP Zhuhai received Excellent Enterprise with Foreign Investment and Great Dedication for Corporate Social Responsibility (CSR) from China Association of Enterprises with Foreign Investment (CAEFI). Awarded by the General Administration of Customs as Red Name Enterprises of PRC. BP Zhuhai won many awards from the Zhuhai city government for its outstanding safety performance, import trade contribution, key tax contributor, etc. 9 20

10 BPZ 2008 Verified Site Report 2008 Top 100 Enterprises and 100 Manufacturers in Guangdong (Picture 1) Scholarship for Porverty-Sticken University Students (Picture 2) 10 20

11 BPZ 2008 Verified Site Report Donation of Sichuan Earthquake: 100krmb by company, 81krmb by employees (Picture 3) Road safety adv. campaign in Zhuhai city (Picture 4) 11 20

12 Environmental Leadership Summer Camp (Picture 5) Environmental Leadership Summer Camp (Picture 6) 12 20

13 4. Identification and management of environmental impacts 4.1 Management system HSSE impacts at the BPZ site are identified in several ways. These include: identification of environmental aspects through the ISO14001 HSSE MS, requirement imposed by state and/or local issued permits and programs, corporate requirements, review of past incidents to identify recurring problems or trends, and other established safety and environmental programs. The HSSE MS conform to the ISO standard and includes a procedure for identification and ranking of environmental aspects. 4.2 Legislation State and/or local issued legislation, regulation, and/or permits and programs set minimum compliance expectation for BP. 4.3 Policies BP Group policy, Code of Conduct, standards and expectations ensure consistency of practice in BP world. The BP Management Framework, BP standards, the greenhouse gas reduction program and OMS (Operating Management System) requirements are embedded in site management programs. 4.4 Incidents Incidents are investigated to determine the root causes, with actions taken to prevent recurrence. Lessons-learnt from incidents at other sites are also assessed and actions Completed, as appropriate, to prevent occurrence at BPZ site. 4.5 Employee contribution Employee involvement is critical to deliver HSSE results with programs directed to promote visible leadership and engagement of the entire workforce in HSSE programs. Site involvement programs include daily site leadership audit, Safety Observation Conversation. Audits, Process Safety Management Programs and pre task safety review. Examples of some of the prominent HSSE issues and performance results of the BPZ site are given in the following section. BST (Behavior Science Technology) programs is to observe the employees safe and at risk behaviors in order to remove barriers. In BPZ a BST committee meets regularly and observers are trained for site observation

14 5. Our impacts and performance The following are some of the key HSSE issues being addressed at the BPZ site: 5.1 Site Safety Performance Performance During 2008 the BPZ site experienced 23 (twenty-three) first aids to BP personnel and contractors and 2 (two) recordable injuries, zero DAWFW case and 1 (one) severe vehicle accident for BPZ and 1 (one) for SMSL (Supply, Marketing, Sales, Logistic). Ensuring no harm to people and complying with all legal requirements were what we tried to reach in Impact Working safely at the BPZ facility impacts not only BP employees and contractors, but their families. Providing a safe workplace is a core value throughout BP and is embedded in all of the work practices and processes at the BPZ site System employed to attain performance a) Management Operational Controls: Site safety is addressed in all aspects of our work. HSSE issues are addressed in: operating procedures, work planning, training, contractor orientation and evaluation, communication of lessons learned from other BP sites, project planning, and workforce involvement programs. b) Objectives and targets: The goal for injuries and illnesses is, naturally, zero. Numerical targets are established to focus on improvement. Our objectives remains: no accidents, no harm to people c) Audits and Assessments: The BPZ facility performed a series of internal audits and reviews that addressed: External compliance monitoring event addressing legal compliance Monthly management Safety Observation Conversation, Programs Audits, and HSSE inspection monitoring programs. d) Communication The site seeks to involve everyone in delivering HSSE performance to comply with legal and corporate requirements, and improve performance. The Works General Manager leads a site leadership meeting that meets bi weekly to monitor performance and provide program to review business issues in which all HSSE issues are discussed. HSSE team has a planning 14 20

15 meeting that meets by-weekly to monitor performance including contractor HSSE performance. There is a daily morning meeting to discuss all operation and HSSE issues with top management involved. Formal communication meetings: Quarterly town hall Bi-weekly site leadership meeting Bi-weekly HSSE team meeting Department team meeting Works General Manager lunches with employees e) Initiatives adopted in 2008 : Pre-task programs running which is to encourage all staff and contractors to think over the risks which may occur before doing any jobs; Enhancement of our near miss and safety observation reporting system; Regular site inspection by HSSE manager, Unit HSE engineer and other HSSE team members; Internal key process audits, such as MOC, PTW, Risk Assessment, and etc.; Manual handling programs, education of manual handling risks which greatly reduced first aids cases; Monthly PTW audit summary and analysis for root cause and corrective actions communicating with the whole workforce; Numerous occupational health programs were delivered; BST program is focus on the safe and at risk behaviors of employees and contractors to reduce at risk behaviors. Assessment of noise level to #2 unit was carried out during 2008 and modifications were made to control the noise the #2 unit. OMS was implemented to replace the ghser. HSSE compliance workshops were held to enhance the awareness to the site. f) Future plans In 2009, BPZ continues to improve the safety of employees, contractors, and visitors with particular emphasis on the eight elements of OMS

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18 5.2 Site Security Performance BPZ conducts daily patrol to the PX pipeline for protection; Site security supervisor conducts regular night visit. Alcohol test also involves the guards

19 5.3 Environmental Performance BPZ was awarded Exemplary Company for Safe Operation by the Zhuhai municipality. The plant is also nominated by the Zhuhai government to participate in the Guangdong Provincial safety award. Item unit 2008 Actual Compliance Summary To air % 100 To water % 100 To land % 100 Emissions to air Non-Methane Hydrocarbons(NMHC) Tons 93 Oxides of Sulphur(SOx) Tons 3 Oxides of Nitrogen(NOx) Tons 91 Discharges to water COD Tons 135 Manganese Kg 836 SS Tons 64 Total Wastewater M3 2,529,319 Hazardous Wastes Tons 117 GHG emissions Tons 232,565 Energy Consumptions GJ/Tons PTA 2.5 Unplanned Release & Public compliance - 1 time, 100 tons wastewater to storm ditch due to failed instrument - reported it to local EPA, all wastewater was damed up and pumped back to WWT finally, and no impact to the environment. public compliance

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