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MOL GROUP CONTRACTOR HSE MANAGEMENT New Elements of Contractor Safety

MOL GROUP CONTRACTOR HSE MANAGEMENT New Elements of Contractor Safety. BÉLA CSEH – MOL Group HSE Director Supplier Forum - Budapest, 14 th November 2007. We believe that: All HSE events can and should be prevented Injury prevention applies to all personnel in the workplace

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MOL GROUP CONTRACTOR HSE MANAGEMENT New Elements of Contractor Safety

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

  2. We believe that: AllHSE 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 CONTRACTOR SAFETY

  3. MOL GROUP AIM IN CONTRACTOR SAFETY ZERO INCIDENTS CULTURAL CHANGE STRATEGY • 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“

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

  5. 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 THE 6-STEP MANAGING CONTRACTOR SAFETY

  6. 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 NEW ELEMENTS IN CONTRACTOR SAFETY ON SITE HAZARDS PRE-QUALIFICATION AUDIT

  7. 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 NEW ELEMENTS IN CONTRACTOR SAFETY „RULES OF THE GAME”

  8. 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 NEW ELEMENTS IN CONTRACTOR SAFETY (cont´) MONITORING AND AUDITING CONTRACTOR SAFETY AWARD

  9. SUMMARY • Starting date: January 2008 • Cultural change is evolution and revolution – changing a basic perception of reality • MOL Group and Contractors´ Management need to take a strong leadership role • Not only provide safety resources, equipment and training, but actively demonstrating the commitment to safety • Recognize and reward positive safety related behavior • Long term achievement is a product of day to day efforts

  10. YOU WILL ACHIEVE THE LEVEL OF SAFETY THAT YOU DEMONSTRATE YOU WANT TO ACHIEVE Any related comments, questions you may have please address to the e-mail address: supplier-forum@mol.hu WHAT IS YOUR ROLE IN CONTRACTOR SAFETY

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