HSE Policies and Standards

When carrying out its activities, the aim of MOL Pakistan is to guarantee the health and safety of its employees, local communities, contractors and customers, to protect the environment and ensure public safety on the basis of the following principles: all activities must be managed in strict compliance with regulations and operating procedures established for the sectors of activity; the adoption of principles, standards and solutions that constitute international best practices in business for the protection of health, safety, the environment and public safety; to this end the company must implement systematic benchmarking processes; operational management must be based on state-of-the-art criteria in terms of environmental protection and energy efficiency and the objective must be pursued of improving health and safety conditions according to practices and procedures; research and technological innovation must aim at promoting processes which are increasingly compatible with the environment and whose content reflects the constant attention paid to the health and safety of employees and public; personnel training and the exchange of experience and information must be considered fundamental tools in order to achieve HSE objectives, with a view to the continuous improvement of prevention and protection standards; employees, when carrying out their duties, must be actively involved in the process of HSE safeguards; this, in the interests of their colleagues and the public at large, as well as in their own interests; employees, authorities and the general public must be informed periodically about the results achieved in terms of environmental protection, health and safety; when requested, cooperation must be ensured with competent authorities regarding the preparation of technical regulations and guidelines concerning HSE issues; the foregoing principles must be reviewed constantly and their application monitored periodically. Besides considering the protection of health, safety and the environment as a priority corporate objective, the company is actively engaged in contributing, with their respective technological know-how and professional skills, to the well-being and improvement of the quality of life of the communities in which we operate.

Commitments
COMMITMENTS

Preventing health risks in the workplace and in the surrounding areas Contributing to the fight against endemic and epidemic diseases entailing serious social consequences Drawing up schemes for the management of health emergencies

Health

Preventing workplace injuries Maintaining standards of excellence in the safety Management Effective control on emergency situations

Safety

Strengthening the environmental management system Mitigating atmospheric greenhouse gas emissions by monitoring through SMART program Limiting the environmental footprint of activities while safeguarding biodiversity Opting start-of-art technologies for environment friendly disposal of different kinds of operational wastes

Environment

HSE Governance and Management System

Within MOL Pakistan, the Health, Safety and Environment Department directly reports to the Managing Director / CEO and is responsible for promoting the constant enhancement of HSE performances and for encouraging an integrated approach to environmental sustainability topics. MOL HSE Department functionally reports to MOL Group HSE Department as well. Since its establishment in 2004, the HSE Department has been contributing to rationalizing, through a set of objectives and through coordination, the HSE activities carried out in all operational units. Employees and contractors, on their part, are bound to guarantee the safety of operations, the respect for the environment.

HSE Management System Model In 2008 MOL Group developed new regulatory system for all its divisions / companies to safeguard health, safety, the environment and the well-being of the public at large. MOL Group HSE MS Guidelines has been built upon broad experience in management systems in a number of MOL Group companies and upon best practices. Although it will require extra efforts to put it into place, the rewards in terms of better management, reduced risks and improved business efficiency will make it well worthwhile. Group Guidelines consist of mandatory rules for the proper conduct of business. However, to develop operations and implement good practices in MOL Group, recommended rules have also been included, the better to guide the development of processes.

Governance Governance Handbook Handbook consists consists of of

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The New Regulatory System

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Group Guidelines
Global Operative regulations

Group Group Guidelines Guidelines

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Loc al L ead ers

Local Local Operative Operative regulations regulations

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Local Operative regulations

Global Operative Regulations MOL Group HSE Management System Guidelines HSE_1_1GG provides guidelines for different business functions to incorporate HSE requirements into the operations. The HSE Management System guidelines consist of 15 elements and separate regulations to describe the each element have also been issued by Group. The HSE Management System is based on PDCA (Plan-Do-Check-Act) cycle and is line with OHSAS 18001 and ISO 14001. Local Operative Regulations MOL Pakistan is committed to decreasing the impact on environment, health and safety caused by its operations and utilization of its products. Therefore, the proper

management of Health, safety and environment issues has become the integral part of MOL strategic objective. MOL Pakistan makes every effort to apply principle of precaution to its operation. To cover all operational needs and customize local condition, MOL Pakistan has also developed local regulations in forms of HSE Manual, Policies and procedures incorporating the MOL Group requirements and best industry practices. All new local documentation is under review process and shall be implemented during year 2009.

SD & HSE Committees SD & HSE Management Committee at head office level and sub-committees(s) have been established at Site(s) level to coordinate and control the activities of the Health, Safety & Environment System and to periodically review and evaluate the performance of the HSE System. o o o o o o Islamabad Office: Chaired by Deputy Managing Director (DMD) Central Processing Facility: Chaired by Production Manager / Site Incharge Manzalai Gas Plant: Chaired by Production Manager / Site In-charge Makori EPF: Chaired by Production Manager / Site In-charge Drilling site: Chaired by Drilling Manager / Company Man Exploration: Chaired by Exploration Manager / QC Supervisor

HSE Management Committee meets on quarterly basis and Sub-committee(s) meets on monthly basis.

Target Setting Target-setting is a basic element in good management and - as HSE themes are an integral part of Key Performance Indicators (KPI) - supports the improvement of HSE performance. To be challenging yet achievable, targets need to be set carefully and precisely to fit the nature of the specific operations, their locations and track records, in question. Every year, the HSE Unit sets performance targets for the company. Grouplevel targets, with breakdowns by Business Unit, are then approved by the HSE Committee. Communication HSE communication is of vital importance to provide access and understanding of existing and new requirements to employees. MOL Pakistan policies, procedures, guidelines, targets, objectives, goals and regulations are communicated to all the employees through Notice boards, Files, Memos, Email / website Posters, New letters, Surveys, Health and Safety trainings, Safety talks, Electronics notes, HSE Committee meeting and minutes, Management reviews / inspections and minutes of meeting, HSE Inspection reports / status feedback and Stop cards.

Performance of HSE is reported in HSE audit. The report is presented in the HSE executive committee review meeting at Field / Departmental level and head office level. Legal and other regulatory requirements are well communicated among all the concerns. Internal communication of legal requirements includes communication of status, regulations, permits and enforceable agreements. Risk Assessment /JHA/ Hazop No job is absolutely safe. Some hazards are always present during any job. However jobs can be made reasonably safe by avoiding a majority of serious hazards through development and enforcement of safe work procedures. For this purpose Risk assessment / JHA and Hazop activities are conducted and the result comprising of control measures are communicated. Hazop study was carried for Central Processing Facility (CPF) by involving MOL and consortium constructing the facility. HSE Awareness and Trainings HSE Trainings play important role for the floatation of MOL HSE requirements and specification. Training of staff and employees in fire prevention and fire fighting protection, general safety and job related is an important part of the MOLs HSE program. Each area / activity in-charge is responsible for ensuring that his staff and employees are properly trained on these aspects. Defensive driving and fighting course was organised at production sites and Islamabad office through specialized third party training organizations. In house safety First Aid, courses are conducted by Field Doctors. HSE Department conducted training sessions on general and job related safety for new hires and existing employees. These trainings laid emphasis on MOLs HSE policy, GORs, LORs, technical aspects of plant and equipment, safe operating procedures, safe working permit system (Where applicable), accident prevention techniques, plant or area emergency procedures and employees safety orientation. Drills on scenario like fire, medivac and security are also organised regularly to train response teams, educate employees and verify the effectiveness of the Emergency Response system (ERS) HSE and Technical Auditing The Audit Program lists all the departments and fields, the dates on which departments and fields to be audited, the audit team for each day and the audit team leader. The audits of different departments/processes and contractors activities are conducted on the basis of their importance and status as evident from the last audit results. MOL has a team of trained respective Internal HSE Auditors from various disciplines for conducting internal HSE audit at the various fields and head office of MOL. Corrective / Preventive Action Requests (CPARs) initiated by the Audit team are sent to

concerned Department Heads/ Site Incharge who investigates the cause of the nonconformity, proposes a corrective action to be taken and indicates the date by which the corrective action will be fully implemented. Chief Inspector Mines (CIM) also visited the MOL production and drilling facilities and conducted audit as per Mines Act 1923 and Safety in Drilling & Production Rules 1974. Overall the audit was successful and no major non-conformity was reported however, CIM suggested few additional measures to further strengthen safety system.

SD & HSE Committee Meeting at Makori EPF

SD & HSE Committee Meeting at Makori West-1

First Aid Training at Makori EPF

PTW Training at MGP

Fire Drill at MGP

Defensive Driving course at Islamabad

First Aid Drill at Makori West-1

Bomb threat drill at Islamabad

Bomb threat drill at Islamabad

Emergency Response team Meeting at Islamabad

Medivac Drill at Maramazai-1

Chief Inspector of Mines Visit to CPF

Chief Inspector of Mines Visit to Manzalai-7

Management audit at Islamabad Office