I. Quality Policy:

Strictly abide by contracts and carry out drilling operations to high standards

Strive to enhance quality through scientific management

Build up the Hilong image and exceed customer expectations

Strictly abide by contracts and carry out drilling operations to high standards: The Company always strictly complies with the terms of contracts in order to fulfill its commitment to drilling and service quality, effectively control the whole drilling and service process, and meticulously conducts every step of the work in regards to every individual well so that the quality of the drilling work will meet customer requirements.

Strive to enhance quality through scientific management: The Company relies on scientific management and quality assurance systems in the development of new technologies so as to provide customers with first-class drilling engineering and service, win the trust and support of customers with increasingly higher quality, and enhance its market competitiveness.

Build up the Hilong image and exceed customer expectations: The Company’s quality management system is resolutely focused on operational improvements, improvements in service quality and the maximization of customer satisfaction. At the same time, the Company endeavors to first build up the Hilong image through the high quality of its operations and services, then to win the international market through branding, before finally relying on quality and markets to increase the beneficial results of its operations and achieve sustainable development.

I. Quality Objectives:

1) Drilling and workover operation and technical service contract compliance rate: 100%;

2) Customer satisfaction index: 95%;

3) For drilling and workover operation and technical service quality of turnkey projects:

Wellbore quality one-time pass rate: ≥98% (incl. well deviation, overall angle change rate, and bottom horizontal displacement);

Cementing quality pass rate: ≥90%;

Coring recovery rate: ≥90% (The fractured stratum coring recovery rate shall be more than 60%);

Electrical measuring one-time success rate: ≥80%;

Rate of timely delivery of wells: ≥95%.

4) For per-diem contract drilling and workover operation quality:

Compliance with customer instructions during operations: 100%;

Drilling equipment maintenance-life ratio (as required in customer contracts): ≤1.5%;

Compliance with the customer-specified technical parameters: 100%;  

Rate of timely reporting in the event of downhole accidents and the reporting of indications of abnormal complexity of operations: 100% (customers should be proactively assisted in the handling of such matters);

Single-well inspection pass rate: 100%.

II. HSE Policy:

People first, health first, safety first, environmental protection first.

People first: People are the most valuable asset, and respecting and valuing the employees in all our operations is a fundamental principle of the Company.

Health first: The Company depends on the lives and health of employees for survival and development, so we must enhance labor protection and prevent occupational health disorders.

Safety first: The safety of the Company's property and employees' lives is connected with our image and long-term development, so we must take all preventive measures available to prevent safety incidents from occurring.

Environmental protection first: It is our duty and obligation to reduce the adverse environmental effects of our operations, continually improve working and living conditions, and lead our domestic competitors in terms of environmental performance.

HSE Objectives:

Long-term HSE objectives: zero injuries, zero accidents, and zero pollution.

Short-term HSE objectives:

1) Fatality frequency rate: 0;

2) Lost Time Injury Frequency (LTIF) per million man-hours: ≤5;

3) Major environmental pollution accident: 0.