MOL GROUP CONTRACTOR HSE MANAGEMENT New Elements of Contractor Safety BÉLA CSEH – MOL Group HSE Director Supplier Forum - Budapest, 14 th November 2007

CONTRACTOR SAFETY We believe that: All HSE events can and should be prevented Injury prevention applies to all personnel in the workplace Contractor HSE is consistent with overall corporate HSE Policy and leads to a good business flow

MOL GROUP AIM IN CONTRACTOR SAFETY No harm on health, no property damage or loss on MOL Group or Contractor side Continuous reinforcement, change in attitudes/ perceptions Providing guidelines and techniques for observing and correcting unsafe acts and conditions Consistent message that safety is a priority to the organization – unsafe acts and conditions will not be tolerated – leading by examples Management commitments – overcome a „safety is not my responsibility“ mentality Safety Leadership by Supervisors – turn a negative situation into a positive learning experience „LET´S DO IT IN A DIFFERENT (SAFER) WAY“„LET´S DO IT IN A DIFFERENT (SAFER) WAY“ ZERO INCIDENTS CULTURAL CHANGE STRATEGY

CONTRACTOR SAFETY vs. PROCESS SAFETY MANAGEMENT 1. Contractor Selection – Pre-qualification 2. Contract Preparation 3. Contract Award 4. Orientation & Training 5. Monitoring & Auditing 6. Post-Contract Evaluation

THE 6-STEP MANAGING CONTRACTOR SAFETY Contractor Selection – Pre-qualification Audit-qualify-select contractors with demonstrated satisfactory HSE performance Contract Preparation Document in an “Owner-Umbrella HSE plan” the HSE performance expectations, initial hazard analysis & evaluation, site HSE regulations including standards for execution of the work, responsibilities of key personnel and expected behaviors Contract Award Communicate and test for understanding of HSE expectations documented in the contract Orientation & Training Prepare contractor team for project success including HSE regulatory compliance Monitoring & Auditing Assure that we are following the plan outlined in the previous steps Post-Contract Evaluation Assess level of success and lessons learned. Determine whether to use the contractor again

NEW ELEMENTS IN CONTRACTOR SAFETY More precise description of site relevant HSE hazards in ITBs –Responsible: MOL Group Pre-qualification system with involvement of external contractor – only companies who gain one of different „HSE certificates“ (differentiated based on complexity of works), are allowed to work on MOL Group sites –New MOL Group Strategic HSE goal –Responsible: MOL Group – selection of company for auditing –Responsible: Contractors – to prepare themself for auditing and take part in certification process based on MOL Group HSE criteria ON SITE HAZARDS PRE-QUALIFICATION AUDIT

NEW ELEMENTS IN CONTRACTOR SAFETY Establishment of the „rules of the game“ –Performance expectations –Standards for execution –Key personal responsibilities (e.g. leader recognizable by helmet color, continual on-site availability, etc.) –Expected behaviors (e.g. standard safety helmets on each worker) –Management of subcontractors – responsibility of main contractor –Responsible: MOL Group – for establishing of rules –Responsible: Contractors – continuous fulfillment of rules „RULES OF THE GAME”

NEW ELEMENTS IN CONTRACTOR SAFETY (cont´) Regular work plan review –Regular formal and informal field audits and inspections –Recording audit findings and corrective action plans (Safety Logbook) –Monitoring of changing conditions –Investigation of all HSE accidents, incidents and near misses – for learning and information sharing –Responsible: MOL Group –Responsible: Contractors Annual Contractor Safety Award – Recognition Award –Responsible: MOL Group MONITORING AND AUDITING CONTRACTOR SAFETY AWARD

SUMMARY Starting date: January 2008Starting date: January 2008 Cultural changeCultural change is evolution and revolution – changing a basic perception of reality strong leadershipMOL Group and Contractors´ Management need to take a strong leadership role actively demonstrating the commitmentNot only provide safety resources, equipment and training, but actively demonstrating the commitment to safety Recognize and rewardRecognize and reward positive safety related behavior day to day effortsLong term achievement is a product of day to day efforts

WHAT IS YOUR ROLE IN CONTRACTOR SAFETY YOU WILL ACHIEVE THE LEVEL OF SAFETY THAT THE LEVEL OF SAFETY THAT YOU DEMONSTRATE YOU WANT TO ACHIEVE Any related comments, questions you may have please address to the address: