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



Health

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





Safety

Preventing workplace injuries

Maintaining standards of excellence in the safety
Management

Effective control on emergency situations






Environment

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


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.

The New Regulatory System
T
IE
R

1

-
F
r
a
m
e
w
o
r
k
OOR
DTR LDA
Code
of
Ethics Standard
Principles
T
IE
R
2
-
G
G
s
Group
Guidelines
T
I
E
R

3

-
O
p
e
r
a
t
iv
e

r
e
g
u
la
t
i
o
n
s
Global Operative
regulations
B
o
a
r
d

o
f

D
i
r
e
c
t
o
r
s
,
E
x
e
c
u
t
iv
e

B
o
a
r
d
L
o
c
a
l

L
e
a
d
e
r
s
G
r
o
u
p
-
l
e
v
e
l
L
e
a
d
e
r
s
Regulations
representing the
requirements of:
MOL Group Code of Ethics (CoE)
It sums up and systematises all business-related ethical standards and
scopes of responsibilities which MOL Group established for itself.
MOL Group Code of Ethics (CoE)
It sums up and systematises all business-related ethical standards and
scopes of responsibilities which MOL Group established for itself.
Group Guidelines
Rules defined by a Group-level leader in consensus with the responsible
Council that describe the standardised operational requirements of the area
managed by the Group-level leader and describe rules to be mandatory
applied everywhere in the Group, where the activity is performed.
Group Guidelines
Rules defined by a Group-level leader in consensus with the responsible
Council that describe the standardised operational requirements of the area
managed by the Group-level leader and describe rules to be mandatory
applied everywhere in the Group, where the activity is performed.
Global Operative regulations
Rules valid for more than one MOL-Group member defined by Group-level
leaders describing operational framework specific either to product, service,
technology, geographic region or information technology system.
Global Operative regulations
Rules valid for more than one MOL-Group member defined by Group-level
leaders describing operational framework specific either to product, service,
technology, geographic region or information technology system.
OOR MOL Group Operational and Organisational Rules
It defines the MOL Group corporate governance philosophy, the Group operational
model, the basic operational rules and describes MOL Group Standard Principles.
Standard Principl es
Describe the position, the set of principles that directs business decisions and
activities to carry out core values and behaviours held critical to MOL Group.
OOR MOL Group Operational and Organisational Rules
It defines the MOL Group corporate governance philosophy, the Group operational
model, the basic operational rules and describes MOL Group Standard Principles.
Standard Principles
Describe the position, the set of principles that directs business decisions and
activities to carry out core values and behaviours held critical to MOL Group.
LDA MOL Group List of Decision-Making Authorities
Defines the most important decision-making points of the operation and
managerial authorities related to decisions. Thus, it disposes the key control
points required by efficient development and operation of MOL Group processes.
LDA MOL Group List of Decision-Making Authorities
Defines the most important decision-making points of the operation and
managerial authorities related to decisions. Thus, it disposes the key control
points required by efficient development and operation of MOL Group processes.
DTR MOL Group Description of Tasks and Responsibilit ies
Stipulates the key tasks and responsibilities of organisational units as well as
organisational co-ordination mechanisms that support decision-making (committees,
decision preparation teams), and their charter.
DTR MOL Group Description of Tasks and Responsibilit ies
Stipulates the key tasks and responsibilities of organisational units as well as
organisational co-ordination mechanisms that support decision-making (committees,
decision preparation teams), and their charter.
Local Operative regulations
Rules connected to a MOL Group member defined by its Local leaders
that describe local processes (with organisational responsibilities) and
methodologies based on the framework set in Group Guidelines and
Global Operative regulations by Group-level leaders.
Local Operative regulations
Rules connected to a MOL Group member defined by its Local leaders
that describe local processes (with organisational responsibilities) and
methodologies based on the framework set in Group Guidelines and
Global Operative regulations by Group-level leaders.
Local Operative
regulations
Governance Handbook consists of
OOR
CoE
Group Guidelines
Glossary
Governance Handbook consists of
OOR
CoE
Group Guidelines
Glossary



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 Islamabad Office: Chaired by Deputy Managing Director (DMD)
o Central Processing Facility: Chaired by Production Manager / Site In-
charge
o Manzalai Gas Plant: Chaired by Production Manager / Site In-charge
o Makori EPF: Chaired by Production Manager / Site In-charge
o Drilling site: Chaired by Drilling Manager / Company Man
o 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. Group-
level 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.

R Ri i s sk k A As ss se es ss sm me en nt t / /J JH HA A/ / H Ha az zo op p

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 / J HA 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.

H HS SE E A Aw wa ar re en ne es ss s a an nd d T Tr ra ai i n ni i n ng gs s

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 non-
conformity, 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