Contractor safety in MOL Group

MOL Group MOL Group HealthHealth SafetySafety EnviromentEnviroment DivisionDivision

byby ViktViktóória Mria MáártonrtonHSE Assurance HeadHSE Assurance Head

Presentation overview• Statistical summary of HSE incidents in Y2005• Main root causes of contractor incidents• Measures taken by MOL Group HSE• Contractor HSE management • HSE related phases of contractor activity

Distribution of HSE incidents by BUs

� 50% of all incidents reported from E&PPossible explanations:

- high reporting discipline- many sites within the country

• 30% of all incidents reported from Refining

Contractors - Total: 60

27

127

21

1 1

E&PGas TransmLogisticsPetchemRefiningRetailIS

115 reported HSE incidents till December

Subsidiaries - Total: 55

31

3

6

13

1

E&PGas TransmLogisticsRefiningRetail

Distribution of incidents by category

Subsidiaries

28

14

10

3

� Majority of reported cases are Lost Time Injuries and Road accidents:

• Subs: 10 road accidents with no injury + 6 LTIs involving road traffic = 16 cases

• Contractors: 5 road accidents with no injury + 4 LTIs + 1 NLTI = 10 cases

Contractors

28

21

5

22 1 1

Lost Time InjuryNLTIRoad accidentTechnical accidentNear missEnvironmentalFire

Main root-causes of HSE incidents of contractors

HighHighHighHighHighHighHighHighHighHighMultiple fatalities, including chemicals with acute toxic effects

5.

HighHighHighHighHighHighMediumMediumMediumMediumSingle fatality (small exposed population)4.

MediumMediumMediumMediumLowLowLowMajor injury, permanent partial disability or prolonged work absence

3.

LowLowLowLowLowLowNegligibleNegligibleNegligibleNegligibleMinor injury affecting work performance. Lost Time Injury (LTI)

2.

NegligibleNegligibleNegligibleNegligibleNegligibleNegligibleNegligibleNegligibleNegligibleNegligibleSlight injury, not affecting work performance or causing disability (NLTI)

1.

Happens several times per year at

location

Happens several times per year in

the company

Incident has occurred in the

company

Heard of incident in the

industry

Never heard of in the industry

Probability of harm to people

Consequences

Main root-causes of work injuries (LTIs, NLTIs):

- Falling from height – 10 cases – (1 subs. + 9 contractors)- with consequence 3 in two cases (subcontractors of Explant and SMaO)

- Badly prepared work environment – identified in 5 investigated cases - with consequence 2 in two cases

- Hand injuries – 21 cases – mainly with consequence 2

Measures taken• Organisation of Contractor Safety Workshop

• Preparation of Action Plan for Contractor Safety Management improvement

• Preparation of 4 "Safety Alert" presentations for HSE Committee - to call the top management attention to common risks arising from works executed by contractors on MOL Group sites

• Organisation of Safety Day for contractors

• Execution of contractors HSE audits together with subsidiaries HSE experts

• HSE co-operates in investigating the most serious incidents

• Arranging a meeting with HSE partners and Corporate Services expert to improve the process of work permitting, preparation of a Group level process regulation is under way

Contractor HSE Management

• Contractor HSE Management – extending the system to contractors through subsidiaries

• HSE performance serves as the basis of contractor qualification

• Main goals:

� Improve workplace health, safety and environmental performance of contractors – effective HSE program for contract

� Assisting contractors in administering programs – consistent with client expectations

� Facilitate the interface with company / other contractors

Contractor HSE Management

• PHASES OF CONTRACT ACTIVITY

1. Planning � setting requirements2. Pre-qualification

� new contractors� qualified contractors

3. Selection� Full / Short HSE Plan� general HSE requirements of contract

Contractor HSE Management

• PHASES OF CONTRACT ACTIVITY (cont’d)

4. Pre-mobilisation� kick-off meeting� site hand-over� pre-job audit

5. Mobilisation6. Execution

� work permits� contractor HSE audits

7. De-mobilisation & Close-out

Contractor HSE Management

EFFECTIVE CONTRACTORHSE MANAGEMENT = REDUCED LIABILITIES

HSE Qualification process

HSE Performance measurement

Contractor audits

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