Drilling-China Integrated Management System

Document Number: Rev.:

L3.2-ADM-P/004 3.0
Document Title: Date:
Management of Cars of Non-Business Use 1st Aug., 2017

Document Owner Deputy general manager (administrative management)

Document Responsible Manager of Administration Department
Document Pursuant to Administration Management Manual L3.1-ADM-M/001

Rev Date Description Prepared Reviewed Approved

1.0 1st Aug., 2011 First issue Compiling team Xiaosong Chunhua
Yuan Liu
2.0 31st Aug., 2013 First version Compiling team Xiaosong Chunhua
Yuan Liu
Xiaosong
2.1 20st Apr., 2014 Amendment Zhenhuan Wang Chao Liu
Yuan
Compiling Yongjun Xiaosong
2.2 1st Jun., 2015 Amendment
Han Yuan
Compiling Hailong Xiaosong
3.0 1st Aug., 2017 Revision
Qu Yuan

Table of Contents

1. INTRODUCTION 3
1.1 Purpose 3
1.2 Applications 3
1.3 Laws, Regulations and Relevant Requirements 3
1.4 Definitions and Abbreviations 3
1.5 Feedback 3

2. RESPONSIBILITIES 3
2.1 Executive Leadership in COSL Drilling 3
2.2 Administration Department 3
2.3 Marketing Department 4
2.4 Subsidiaries 4
2.5 Operating Unit 4
2.6 Relevant Department/Staff 4

3. MANAGEMENT PROCEDURE 4
3.1 Car Use Application and Dispatch Procedure of Headquarter 4
3.2 Management Requirements of Headquarter 4
3.3 Leasing Procedure for Cars of non-Business in Plan 5
3.3.1Leasing Procedure for Cars of non-Business Use with Operating Unit
Service Procurement Limit 5
3.3.2Leasing Procedure for Cars of non-Business Use beyond Service
Procurement Limit of Operating Unit and Subsidiaries 5
3.4 Leasing Procedure for Cars of non-Business beyond Plan 6
3.5 Other Requirements 6

4. RELEVANT DOCUMENTS 6

5. RECORDS 6

6. ATTACHMENTS 6

Printed version is uncontrolled Page 1 of 6

 Drilling-China Integrated Management System
Document Number: Rev.:
L3.2-ADM-P/004 3.0
Document Title: Date:
Management of Cars of Non-Business Use 1st Aug., 2017

Printed version is uncontrolled Page 2 of 6

 Drilling-China Integrated Management System
Document Number: Rev.:
L3.2-ADM-P/004 3.0
Document Title: Date:
Management of Cars of Non-Business Use 1st Aug., 2017

1. INTRODUCTION

1.1 Purpose
This procedure is formulated to standardize management of cars of non-business use
in COSL Drilling and clarify leasing process of cars of non-business use.

1.2 Applications
This procedure is applicable to all units of COSL Drilling.

1.3 Laws, Regulations and Relevant Requirements

Vehicle Management Rules of COSL, AM-01-03-06
Measures for the Management of Performance and Business expenditure,
《中海油田服务股份有限公司车辆管理细则》，AM-01-03-06
《中海油田服务股份有限公司总部机关人员及直属单位负责人履职待遇、业务支出管理
办法》 海油服股内控[2015]224 号

1.4 Definitions and Abbreviations

Cars of non- Refers to cars used during business operation, work
Business Use experience exchange, official activity, visitors reception,
conference or group activity.

1.5 Feedback
COSL Drilling encourages users of this document to feedback comment to the
document, so that the document can continuously be updated.

Feedback may be given directly to document owner or document responsible.

2. RESPONSIBILITIES

2.1 Executive Leadership in COSL Drilling

Review annual budget of cars of non-business use of COSL Drilling.

2.2 Administration Department

1) Make annual budget of cars of non-business use in COSL Drilling headquarter;
2) Review leasing project and technical tenders of Subsidiaries and Operating Units
for cars of non-business use beyond single service procurement limits.

Printed version is uncontrolled Page 3 of 6

 Drilling-China Integrated Management System
Document Number: Rev.:
L3.2-ADM-P/004 3.0
Document Title: Date:
Management of Cars of Non-Business Use 1st Aug., 2017

2.3 Marketing Department

1) Involve in developing commercial leasing tenders of cars of non-business use;
2) Direct Subsidiaries to complete commercial leasing tenders of cars of non-
business use within service procurement limit.

2.4 Subsidiaries
1) Make annual budget of cars of non-business use of its own;
2) Control annual expense of cars of non-business use of its own;
3) Operating Company is responsible for reviewing and approving of leasing
application for cars of non-business use within Operating Unit service procurement
limit;
4) Operating Company is responsible for reviewing of leasing application for cars of
non-business use beyond Operating Unit service procurement limit; report to
Administration Department in COSL Drilling;

2.5 Operating Unit

1) Submit leasing application of cars of non-business use to Operating Company;
2) Responsible for managing leasing cars for non-business use of its own.

2.6 Relevant Department/Staff

Responsible for submitting application for car use to Administration Department and
supervising safe driving behavior of the driver

3. MANAGEMENT PROCEDURE

3.1 Car Use Application and Dispatch Procedure of Headquarter

1) All application should be informed to Administration Management in advance and
put forward in the cosl vehicle management system. Administration Management is
responsible for making overall arrangement for car use of leadership in COSL
Drilling and department managers, or large or important official activities;
2) Administration Management should arrange for non-business cars accordingly;
3) Administration Management should verify the status of cars for non-business use
with the fleet monthly.

3.2 Management Requirements of Headquarter

1) Management of cars of non-business use should follow the principle of “collective
management and unified dispatch”;

Printed version is uncontrolled Page 4 of 6

 Drilling-China Integrated Management System
Document Number: Rev.:
L3.2-ADM-P/004 3.0
Document Title: Date:
Management of Cars of Non-Business Use 1st Aug., 2017

2) Car pool of the same direction should be implemented. Internal compromise

among different units should be achieved by Administration Department. Dispatch
return car and car pool appropriately to reduce cost;
3) Staff working in Yanjiao are encouraged to take public transportation;

3.3 Leasing Procedure for Cars of non-Business in Plan

3.3.1 Leasing Procedure for Cars of non-Business Use with Operating Unit Service
Procurement Limit

1) Operating Unit shall fill in Application Form for Project Initiation of Service
Purchasing L3.2-PRO-P/003-R001, submit to Administration Department of
Operating Company for review after reviewed by the unit responsible;
2) After reviewed by Administration Department of Operating Company and other
relevant departments, submit to leadership of Operating Company for approval;
3) After approval from the leadership of the Operating Company, Administration
Department/commercial agency and the applying organization shall complete
developing technical tenders while business staff of Operating
Company/commercial agent finish commercial tenders;
4) Business staff of Operating Company/commercial agency shall award bid to
qualified suppliers;
5) Business staff of Operating Company/commercial agency shall complete bid
evaluation together with Operating Company/commercial agent and applying
organizations;
6) Administration Department of Operating Company/commercial agency shall report
to local branch; while the local branch is responsible for contract signing;
7) Administration Department of Operating Company/commercial agency shall report
to Administration Department of COSL Drilling for record after signing the contract.

3.3.2 Leasing Procedure for Cars of non-Business Use beyond Service Procurement
Limit of Operating Unit and Subsidiaries

1) Operating Unit shall fill in Application Form for Project Initiation of Service
Purchasing L3.2-PRO-P/003-R001, submit to Administration Department of
Operating Company for review after approval from the responsible of the unit;
report to Administration Management of Administration Department of COSL
Drilling after reviewed by executive leadership in Operating Company;
2) Administration Management of COSL Drilling shall review the application and
report to executive leadership of COSL Drilling for approval after approved by
Administration Department manager;
3) The applying organization shall complete the technical tender and report to
Administration Management for approval; it is supposed to complete commercial
tender together with Marketing Department;
4) Marketing Department shall award bids to qualified suppliers;
5) Marketing Department shall organize to complete bid evaluation with
Administration Management and the applying organization. Report the evaluation
result to manager of the Administration Department and executive leadership;
6) Procurement Management Department of the Company/local branch shall
complete contract signing.

Printed version is uncontrolled Page 5 of 6

 Drilling-China Integrated Management System
Document Number: Rev.:
L3.2-ADM-P/004 3.0
Document Title: Date:
Management of Cars of Non-Business Use 1st Aug., 2017

3.4 Leasing Procedure for Cars of non-Business beyond Plan

1) Rental will not be allowed to run or unplanned operation in principal; Exceed the
annual budget due to the change of homework arrangement, a budget adjustment
application should be submitted before it can be implemented after approval;
2) Filling the Application for budget adjustment of COSL Drilling,l3.2-buds-p001-r012,
approve the implementation follow the budget adjustment process.

3.5 Other Requirements

1) Annual agreement of car leasing of the Company shall be prioritized.
2) Subsidiary shall be responsible for car leasing of non-business use within its
service procurement limit while this procedure shall be fully applied and record to
COSL Drilling after leasing completion;
3) Rent shall include vehicle insurance and toll, daily maintenance expense, driver
wages, fuel cost etc. If the rent excludes expense above, the contract shall be
renewed after negotiation with the renting party. Reimbursement of vehicle
insurance, toll, daily maintenance expense is forbidden;
4) When leasing external unit vehicles, if the leasing term is more than 6 months,
shall be reported to the administrative department of the company for the record,
each area shall be reported to the local company for the record. The filing
documents shall include the condition of the vehicle in the leasing unit, the reasons
for the leasing of vehicles, the use of the vehicle for leasing, the displacement of
the vehicle, the rental, lease term, the name of the rental unit and the photocopy of
the qualification.

4. RELEVANT DOCUMENTS
None

5. RECORDS
Application Form for Project Initiation of Service Purchasing L3.2-PRO-P/003-R001
Application for budget adjustment of COSL Drilling L3.2-BUD-P/001-R012
《服务采办立项审批表》L3.2-PRO-P/003-R001
《钻井事业部预算调整申请表》L3.2-BUD-P/001-R012

6. ATTACHMENTS
None

Printed version is uncontrolled Page 6 of 6