#2b: Shift leader / supervisor pack (Contractors and sub-contractors) TRAINING PACKAGE #2b: Shift leader / supervisor pack (Contractors and sub-contractors) LIFE SAVING RULES WHO DECIDES TO BREAK THE RULES, DECIDES NOT TO WORK FOR MOL GROUP

A message from the CEO „…The Life Saving Rules set out clear and simple “dos” and “don’ts” covering activities with the highest potential safety risk and apply to all employees and contractors. The best-performing companies operate within a simple framework of rules and trust their employees to do the right thing. Our Life Saving Rules will help us do the same. They are simple, sharp and do what they say – save lives. As our workers, leaders, managers, supervisors and contractors, I’m asking you to make a personal commitment to the Life Saving Rules too, make sure everyone understands and follows them. Safety will always be our top priority and this shall be based on respecting each other and our rules. My message is a simple one - if you choose to violate the rules and do your job the unsafe way, then you choose not to work for MOL Group. We are determined to save lives.” József Molnár MOL Group CEO

What are the Life Saving Rules? The Life Saving Rules are basic safety rules for high-risk works where failure to comply with the rules has the highest potential for serious injury or death. They also highlight simple actions individuals can take to protect themselves and others. None of the Life Saving Rules is new, they have already been valid through various legal and internal regulations. Most staff already comply every day. The aim is not to blame employees but to drive a culture of compliance. The focus is on modifying worker and supervisor behaviours in the workplace by raising awareness. Compliance is mandatory for everyone, MOL Group, contractor and sub-contractor employees alike. Failure to comply will result in disciplinary action.

Prevent serious injuries What is our goal?  Prevent serious injuries 17 fatalities* NOW GOAL Compliance with the LSR would have saved many of these lives *Staff & contractor/sub-contractor employee fatalities 2008-2012

How were they developed? Review & analysis of: MOL Group historical incident data (fatalities, serious or high potential incidents) OGP recommended practice Oil & gas industry practice Criteria applied: Rules apply to at least 50% of fatal incidents Rules can be clearly defined and easily understood by staff & contractors Violation of the rules can be monitored consistently

Real incidents Ignition source Permit to work Gas testing Workforce and contractor personal accidents in the last 5 years March 2010 Contractor employee died in an explosion during a tank cleaning at Csepel logistics depot in Hungary. Permit to work June 2012 Two contractor employees were killed due to asphyxiation by nitrogen at TVK in Hungary. Gas testing Workforce and contractor personal accidents in the last 5 years January 2010 Slovnaft employee drowned in a service shaft at Slovnaft Refinery in Slovakia. Life Saving PPE February 2012 Contractor employee fell from the canopy of a Tifon filling station in Croatia as he attempted to remove snow and suffered fatal injuries. Energy isolation October 2008 Contractor employee was fatally injured by electric current as he was measuring electric motor at Slovnaft Refinery in Slovakia. No alcohol or drugs Workforce, contractor and 3rd party personal incidents in the last 5 years September 2012 Third party driver was killed in a road accident with a contractor tank truck at Krk in Croatia. ! !

Consequences of breaching the rules Rule violators expose themselves or others to a higher risk of injury or fatality. All rule-breaking cases will be investigated thoroughly. If the rule violator acted intentionally, the maximum appropriate disciplinary action will be applied. For employees of contractors or sub-contractors, this can include removal from site and disqualification from future Company work. If a supervisor sets the conditions for rule breaking or fails to follow through if one is broken, appropriate disciplinary action will apply.

What are the rules? Do not smoke outside designated areas Verify energy is isolated before starting work Obtain and follow a permit to work Use correct lifesaving PPE whenever required Conduct gas tests whenever required Do not carry out work in trenches without effective shoring up Do not remove safety signs or override / disable safety-critical equipment Do not violate safe lifting rules No alcohol or drugs before and during working Comply and intervene

1. Smoke only at designated areas, do not use ignition source As a supervisor / shift lead / foreman, I have to: Inform personnel about designated smoking areas; Ensure the permit to work is obtained if hot work is carried out; Inform personnel about hazards and rules of hot work.

2. Verify energy isolation before work As a supervisor / shift lead / foreman, I have to: Be aware and inform personnel of the hazardous energy sources at the work site; Confirm all hazardous energy sources have been isolated and isolations are in place, for example: blinds, fuse locks or valve handle locks; Confirm no stored energy or other hazards remain; Confirm that it is safe to start work.

3. Obtain and follow permit to work A permit to work must always be obtained prior to starting the following activities and followed throughout the job*: (1) Confined space entry, (2) Hot work, (3) Critical lifting, (4) Work at height and/or over water, (5) Ground disturbance, (6) Maintenance works of particularly increased risk or conditions (e.g. simultaneous operation, work on live high voltage system/equipment, opening of vessel/equipment with hazardous content, overriding safety critical equipment/system, high pressure cleaning etc.) As a supervisor / shift lead / foreman, I have to: Confirm that the requirements of the permit to work are in place; Ensure that a watchman is always present when people are in a confined space; Confirm that gas testing is carried out as per permit to work; Confirm that it is safe to start to work. *: This list is to be considered as minimum, further activities may be under permit to work obligation as defined locally. Performing a work different from what the permit to work was issued for is considered as working without a permit to work.

4. Use correct lifesaving PPE whenever required Personal Protective Equipment termed ‘life saving’ are personal fall arrest systems and personal respiratory protection equipment (except dust masks). A personal fall arrest system must be used when working outside a protective environment with a fall hazard over 2 metres. As a supervisor / shift lead / foreman, I have to: Make sure that the specific life saving PPE is available and personnel are trained; Confirm that suitable anchor points are available if personal fall arrest system is to be used; Confirm that it is safe to start work at height or in the hazardous or potentially hazardous atmosphere.

5. Conduct gas tests whenever required As a supervisor / shift lead / foreman, I have to: Confirm that gas testing is carried out by trained personnel as per permit to work; Ensure that enough calibrated gas detectors are available; Request more gas tests if necessary to keep the workers safe; Confirm that it is safe to start work.

6. Do not carry out work in trenches without appropriate shoring As a supervisor / shift lead / foreman, I have to: Ensure that any pits or trenches deeper than 1.2 metres are sloped or protected by shoring; Ensure that any pits or trenches deeper than 1.2 metres are considered as confined spaces.

7. Do not remove safety signs or override / disable safety critical equipment Examples of safety-critical equipment include isolation devices/emergency shut-down valves, lock out/tag out devices, trip systems, relief valves, fire and gas alarm systems, certain level controls, alarms, crane computers. As a supervisor / shift lead / foreman, I have to: Be aware and inform personnel of the safety-critical equipment in the work place; Confirm that authorisation of overriding / disabling safety critical equipment does not put the safety of personnel, asset or the environment to risk; Ensure necessary temporary control measures are in place when safety critical equipment is overridden / disabled.

8. Do not violate safe lifting rules As a supervisor / shift lead / foreman, I have to: Ensure a signaller is appointed whenever necessary (eg. blind lifting, critical lifting*); Make sure the lifting area is secured with tapes or barriers; Make sure the lifting path is clear; Ensure that rigging and lifting are both performed by competent persons; Confirm that proper rigging equipment is used; Ensure that nobody walks under a suspended load; Stop lifting in the event of loss of communication. *: Some lifting activities involve increased hazards (like lifting heavy loads close to crane capacity or over critical technological areas), these are called critical lifting.

9. No alcohol or drugs before and during working As a supervisor / shift lead / foreman, I have to: Assign work to people who are fit to work; Immediately remove people from the work who are under the influence of alcohol or drugs.

10. Comply and intervene Keeping the Life Saving Rules will save lives. One who chooses not to keep the Life Saving Rules chooses not to work for MOL Group. As a supervisor / shift lead / foreman, I have to: Provide a safe workplace and assign safe work in line with the Life Saving Rules; Inspect the Life Saving Rules are followed; Intervene if somebody violates the Life Saving Rules and apply consequences.

Your responsibility Know the Life Saving Rules: purpose; application; reporting; investigation; consequences. Ensure and verify that your and your sub-contractors personnel have been trained. Keep your team engaged with the LSR, always recognize positive behavior. Lead through personal example. Ensure and verify that the LSR are applied in a fair way. Verify, measure and continuously improve compliance.

Sharing the LSR with your team Discuss each rule with your team and ask them to relate the Rules to what is important in their particular work area, e.g. working at height. Be clear that your expectation is that everyone, including you, will follow the Rules. Express that involvement of your subordinates in system operation is essential. Talk about how you will respond in the workplace if team members break a Life Saving Rule. Be clear: if following a Rule means a job can’t be done, find alternative safe solution to complete the work. Encourage them to stop the work rather than break the Life Saving Rule or make a shortcut.

Tips for training the LSR Familiarize yourself with the rules. Try to use the slides as help rather than reading from the slide. Think about the type of questions your team may ask you (and the answers you’ll give), as well as how to encourage discussion and engagement. Put special focus on the reporting and investigation of rule violations, this topic will always be in the center of attention. Tell your team how you are ‘living’ the Rules yourself. What do YOU intend to change? How will you behave differently? Explain how you intend to recognize positive behavior.

How the LSR are violated SYSTEM or UNINTENTIONAL ERROR DELIBERATE VIOLATION System error Violator did not receive documented training or followed instructions, procedures that led to the violation. Reckless contravention The person thought it was better for them personally to do it that way, e.g. getting a longer work break, getting away earlier, etc. Routine error This type of error has been made by the employee or group of employees as accepted way of doing the job. Malicious Contravention or sabotage The person committing the violation acted so with intentional negligence of the consequences or to cause harm. Benign contravention Violator thought it was better for the company to do it that way or considered the job could not be done if the procedures were followed. Poor awareness / understanding The violator demonstrates poor risk awareness and/or understanding of the impact his/her actions have. Slips and lapses Actions that did not proceed as planned, e.g. something was done twice, the wrong way or a step is forgotten.

How LSR violations shall be treated SYSTEM or UNINTENTIONAL ERROR DELIBERATE VIOLATION System error No disciplinary consequences are applied* Reckless contravention Strictest disciplinary consequences are applied Routine error Progressive disciplinary consequences are applied Malicious Contravention or sabotage Benign contravention Poor awareness / understanding Slips and lapses *: If no other causes are identified during the investigation. Inadequate instructions, procedures etc. that caused the violation must be corrected to prevent reoccurrence.

Reporting of violations Who can do on-the-site audit? MOL Group EHS MOL Group Investment MOL Group operator (site responsible) During the audit an Inspection log is created, that is approved and signed by the representative of the audited firm. Action Example Action executor Immediate Expulsion until correction (suspended work) (eg. until wear the lifesaving PPE) Auditor and site responsible operator Longer term Ban the employee (eg. proven alcohol comsumption) Contractor owner

Investigation of violations 1 Life Saving Rule violation is reported 2 Investigation team is nominated* 3 Establishing the causes 4 Investigation team recommends consequence* 5 Additional changes to systems, procedures are recommended if necessary *: Team nomination is necessary only in cases where consequences involve serious consequences, such as contract termination or as defined locally.

Disciplinary actions - X 50 000 HUF/Pers. 200 000 HUF 50 000 HUF Contractor / Subcontractor Staff Smoking out of the designated smoking area Energy isolation missing Working without work permit Not using/wearing the life-saving protective equipment Failure in performing the prescribed gas concentration test(s) Protection against collapse is missing Safety equipment and signs are removed or missing Violation of regulations relevant to lifting operations Proven consumption of alcohol or drug Penalty amount 50 000 HUF/Pers. 200 000 HUF 50 000 HUF 10 000 – 200 000 HUF Expulsion until correction (suspended work) - X Ban the relevant shiftleader Ban for 1 year for MOL Group sites. Ban for 1 year for MOL Group sites (if the PPE was not ensured). Ban for 1 year for MOL Group sites (if the equipment was not ensured). employees Ban the relevant employees for 1 year for MOL Group sites. (if the employee not used the PPE). (if the employee not used the equipment). employees for 1 year from MOL Group sites.

Additional help Visit the Life Saving Rules Contractor Information Site for: Visuals, handouts (Posters, flyers and training booklet) Training materials (Manager, Supervisor and Employee packages) Frequently Asked Questions Contact your local SD & HSE for any inquiries: [Name, phone, email]

WHO DECIDES TO BREAK THE RULES, DECIDES NOT TO WORK FOR MOL GROUP LIFE SAVING RULES WHO DECIDES TO BREAK THE RULES, DECIDES NOT TO WORK FOR MOL GROUP