PAKISTAN

MOL Pakistan Oil and Gas Co. B.V.Branch Office, IslamabadIssue No. 15 2013. July - Sep

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PANORÁMA PAKISTAN is a quarterly newsletter of MOL Pakistan.

Editorial Board

Patron: Ferenc Juhasz MD/CEO

Editor: Gulfraz Raja

Editorial Team

Shahbaz Khan

Lt. Col. (R) Engr. Niaz Safdar

Saadi Faraz

Contents2 MD’s Message

3 MOL Group Management Delegation Visits MOL Pakistan

4 Young Talents Now on-Board!

5 Inspirational Speech to Growww Graduates by Mr. Alexander Dodds

5 MOL Achieves 4 Million LTI Free Man- Hours at Makori GPF Project

6 Loyalty Awards Ceremony / Aazadi Food Festival

7 HSE Leadership One Day Workshop

8 MOL Pakistan MD / CEO Message on MOL Group Life Saving Rules

9 Loyalty Awards Ceremony (Urdu)

9 Aazadi Food Festival (Urdu)

10 MOL Group Management Visits Pak (Urdu)

11 MD’s Message (Urdu)

MD’s MessageDear readers We are here with the fresh edition of Panorama for you after Eid and Independence Day celebrations. This edition is once again reflective of your opinions and feedback. We are delighted to share with our readers that MOL Pakistan became the first in E&P history of Pakistan to hire seven new female Trainee Engineers this year for the field site, a phenomena unheard of before in the industry. The hiring got through our Growww programme. Let me also briefly share with you the recent developments and activities that took place at MOL Pakistan and are part of the current edition. MOL as a Health and Safety compliant company cares for the safety of its employees. You will find details of Life Saving Rules (LSRs) that MOL Group has introduced to avoid any dangerous emergency situation. Being patriotic Pakistanis, you will enjoy reading about the ‘Azadi Food Festival’ that MOL Pakistan organized to mark the Independence Day in a unique way. You will also get glimpses of activities during the three day visit to Pakistan by MOL Group’s management’s delegation prominent being Mr. Alexander Dodds, Executive Vice President Exploration & Production MOL Group and Jozsef Simola, the Group CFO. At the end I would like to thank all of you for your continued support and feedback, it is precious and important for us as it gives us confidence and hope that we are in a two way communication process.

Thank you.

Editorial TeamFresh edition of Panorama is with you after you feel fresh for having been part of Eid and Independence Day celebrations. We hope you will find this edition interesting to read as large number of informative articles would give you better insight of MOL Pakistan’s recent activities.Panorama contains colorful pictures with the detailed articles of different events like mouth-watering Azadi Food Festival, loyalty awards, Kick-off event of Growww Fresh Graduate program and some others that took place since we last met here at Panorama, to make you feel the real joy of being part of those events. Keep us posted with your precious feedback about this edition as your valuable suggestions are always welcome. Thank you

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MOL Group Management Delegation Visits MOL Pakistan Alexander Dodds and Jozsef Simola lead the delegationMr Alexander Dodds, Executive Vice President Exploration & Production MOL Group & Mr Jozsef Simola, Group CFO accompanied by Mr Jozsef Torkoly Group E & P International Asset Manager,Mr Ferenc Farkas, Head E & P Buisness Development, Mr Zsolt Zolyomi Director Corporate Security were on a hectic three day visit to Pakistan from 16th to 18th Sep. In order to make their visit very rewarding and fruitful, flurry of activities were planned and executed. Their engagements ranged from visits within MOL Pakistan itself to meetings with industry dignitaries, like Secretary Petroleum, Director General Petroleum Concessions, MD OGDCL, MD POL, DMD PPL, to national figures like Ex Chief Minister KPK Province Mr Aftab khan Sherpao, and the then KPK Cabinet minister of Energy Mr Sikandar Sherpao. Mr Alexander Dodds also addressed a press conference addressing prominent media persons on future plans of investments and operations of MOL Pakistan in Pakistan. Details of above mentioned activities are as follows;

MOL Pakistan: The delegation from Head office met MOL’s Islamabad based employees, visiting various departments, attending a Loyalty award ceremony held to acknowledge long service employees. Mr Alexander Dodds and other members of delegation also undertook a road trip to the field where their stop over was at CPF (Central Processing Facility).There, apart from going around various sections of the plant, meeting field employees, they attended field based long service Loyalty awards ceremony. Mr Alexander Dodds addressed the Growww Program participants including young female engineers of the program. He addressed the Field employees and appreciated their good work for achieving various milestones.

Meetings at Islamabad: The senior management from Head Office held

meetings with industry experts like Secretary Petroleum, Managing Director OGDCL, Managing Director POL, and DMD PPL. They also met Ex Interior Minister & Chief Minister KPK Province Mr Aftab Khan Sherpao. Matters of mutual interest were discussed.

Press Conference: Mr Alexander Dodds, addressing prominent journalists and media persons of Pakistan, highlighted the achievements of MOL Group in general and its representative subsidiary MOL Pakistan Oil & Gas Company in particular. The investments so far made and future plans of MOL were also explained. The journalists took great interest in future investment plans of MOL Pakistan in Oil & Gas exploration activities.

TV Interview: Mr Alexander Dodds was interviewed by Pakistan’s Television, a leading channel. The interview went on air on 8th October 2013 in the business segment of PTV. Mr. Dodds spoke in detail how MOL had been a success story in Pakistan and contributing to the energy requirements of Pakistan. Mr. Jozsef Simola,the Group CFO,mean while held various meetings with financial directorate of MOL Pakistan and reviewed budget,procurement activities, implementation of SAP,review of IT/IS, 5 years plan,presentations on MOL Pakistan’s JV Operations and financial matters.

Signing of MOUs: While at Islamabad, three MOUs were signed during delegation’s visit. The brief contents of the MOUs are as under;

MOU with OGDCL The intent of MOU between MOL Plc and OGDCL is to collaborate in mutually beneficial activities especially in;

Identification of potential candidates for the application of IOR/EOR technologies in the OGDCL operated fields and joint collaboration in this respect based upon MOL’s extensive experience of more than 50 years in the said technologies and considering the enormous potential of pertaining fields with respect to energy security for Pakistan.

Opportunities for the potential farm in /farm out into the exploration acreages held by the OGDCL in Pakistan and MOL Production/ exploration acreage held in

Pakistan and abroad. Further strengthening the existing

collaboration with respect to operational efficiencies.

MOU with Pakistan Petroleum Limited (PPL)The intent of MOU between MOL Plc and PPL is to collaborate in mutually beneficial activities especially in;

Opportunities for the potential farm in /farm out into the exploration acreages held by the PPL in Pakistan

Further strengthening the existing collaboration with respect to operational efficiencies.

Identification of potential candidates for the application of improved oil recovery/enhanced technologies in the PPL operated fields, and joint collaboration in this respect based on MOL’s extensive experience of more than 50 years in the said technologies.

MOU with Pakistan Oilfields Limited (POL)The intent of MOU between MOL Plc and POL is to collaborate in mutually beneficial activities especially in;

Identification of potential candidates for the application of IOR/EOR technologies in the POL operated fields and joint collaboration in this respect based upon MOL’s extensive experience of more than 50 years in the said technologies and considering the enormous potential of pertaining fields with respect to energy security for Pakistan.

Opportunities for the potential farm in /farm out into the exploration acreages held by the POL in Pakistan

Further strengthening the existing collaboration with respect to operational efficiencies.Later before delegation’s departure to Hungary, dinner was arranged in their honor which was attended by MDs/CEOs of JV partners,MOL Pakistan’s management and other important dignitaries related to industry.

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Young Talent Now on-Board! Kick Off EventIt was the fourth year MOL Pakistan has been engaged in inducting young talents under Growww Graduate Program, in collaboration with MOL Group. This year twenty three Trainee Engineers have been taken on-board. After the induction, kick- off event took place with a bang this year! The organizers were the Ex-Growwws Team led by Mr. Ali Yasin, the Project Coordinator of Growww 2013. The team came up with unique ideas to add colors to the event. The Kick-Off Event took place in MOL Pakistan Islamabad Office on Sep 20, 2013. It was a full day event with two main ideas & phases. The first idea was to have formal presentations from the critical functions/departments of MOL Pakistan. These short presentations were delivered in order to acquaint Growwwers with the applicable procedures & guidelines on the operations of MOL Pakistan.The Managing Director/CEO, Mr. Ferenc Juhasz gave a motivating speech to the newly inducted Trainees. The meeting was attended by the top management of MOL Pakistan, where all the departmental heads not only greeted the new comers but also made short introduction about themselves followed by their presentations.The second phase of this kick-Off meeting was to have an informal get together in order to know each other in a better way. The platform was given to the Trainees to socially connect themselves not only with the Management of MOL but also build healthy professional relations among themselves. Our special guest of the event was Ambassador of Hungary Mr. Istvan Szabo who attended the second phase of the Kickoff Event. The venue chosen to execute get together idea was the well decorated roof-top of MOL Pakistan Islamabad Office, close to natural environment, an outdoor evening function. The stage was set off for the show going live.Special arrangements for the event were not limited to stage, floral arrangements, a multimedia projector screen, welcome with a bang, the confetti & balloons but the games/fun activities among teams of Growwwers were also organized. This was followed by Talent Show among Fresh Graduates where they came up with the live performances on stage that set the stage on fire. The talent of

fresh graduates not only amused the Trainees but also the Management of MOL Pakistan & the chief guest who were equally amused.Not only that the Fresh Graduates had a great welcome but the last year’s Fresh Graduates who recently got confirmed as employees with MOL Pakistan were also invited to the event to share their experiences. They were given successful completion certificates on their Trainee Period by the Managing Director/CEO, Mr. Ferenc Juhasz.The Ex-Growwws did wonderful job not only by hosting the event in a unique humorous way that was entertaining for everyone but also played fun videos & NEWS to show to the attendees. The event was closed with the dinner where all got another opportunity to be in close contact & get to interact with each other.The whole idea of Kick off meeting & the welcome party in the evening was very well conceived,well implemented & appreciated by everyone.

On-Boarding Session The 7th Annual Group Growww On-boarding Days for new participants in

MOL’s fresh graduate program were held on Sep 25-26 at Siófok. Theme of this year was inspired by MOL Group’s key Employer Branding message; ‚Every journey to the top starts with the right choice’. The experience in itself was full of fun, activities, zeal, passion & learning.The event was an official welcome for the new Growwwers who joined through Growww Program 2013, came from almost 14 companies across MOL Group and their energy and enthusiasm showed that they will shortly be the driving forces of the change for MOL Group. The presence of senior management at the On boarding Days was a strong acknowledgement for Growwwers. Senior management successfully used this opportunity to show the Growwwers their leadership and inspire their achievement orientation towards future. Also, reinforce the fact that their knowledge and experience will be there for them and that MOL Group counts on their contribution in our teams across all business divisions and functional units.The first day of On-Boarding was fully loaded with useful information comprising presentations from Top Managers including Zsolt Harnadi, Alexender Dodds,Ferenc Horvath and the Former Growww participants who introduced these Growwwers with the corporate vision/mission/values, the strategy of MOL Group and described the current business activities we are into.

MOL PAKISTAN PANORÁMA 5

HR ACTIVITIES

MOL Achieves 4 Million LTI Free Man- Hours at Makori GPF Project

The idea of comprehensive team building exercise was superb. Twelve teams were formed where each team comprised of Growwwers from different countries which was great display of cultural diversity that MOL Group has to offer. It was then again a great idea in the evening to have a combined formal dinner with new colleagues in which two to three seniors joined on each table and did some experience sharing while enjoying the delicious Hungarian cuisine. On the second day a site visit to the Danube Refinery in Százhalombatta, Hungary was organized for the Growwwers where all of them got a chance to see one of the biggest refineries of Europe being operated by the MOL Group. This was a unique learning experience and huge exposure for all the Growwwers at such an early phase of their careers. After the visit of refinery official part of the tour was completed and all participants traveled back to Budapest on September 26, 2013.The next part of the trip was really exciting as Growwwers from MOL Pakistan got time and opportunity to explore the cities of Budapest and Doha. The cruise ride of Danube River, visit of

Hungarian State Opera House, Buda Castle, St. Stephen’s Basilica, Hero’s Square, Citadella, Gellart Hill & Statue, Fisherman’s Bastion with guided tour of city gave them unique opportunity to enjoy the stay to the maximum. Dinner for the same night was arranged and The Ambassador of Pakistan in Hungary, Mr. Iftikhar Aziz was invited as Chief Guest where all enjoyed Indian cuisine while having informal discussions regarding the official engagement and trip to Hungary. In a nutshell, the trip gave wonderful opportunity to the MOL Pakistan Growwwers to connect and socialize with

Inspirational Speech to GrowwwGraduates by Mr. Alexander Dodds,Executive Vice President,MOL GroupTo avail the opportunity of MOL Group Higher Management’s presence in Pakistan & their visit to Field site of MOL Pakistan, Central Processing Facility in Karak, an informal meeting was held between the Growww Graduates 2013 & Mr. Alexander Dodds, Executive Vice President, Group Exploration & Production on Sep 17, 2013.Mr. Alexander welcomed & appreciated the Growww program engineers at the site facility.He said that “Young Talent is vitally important to MOL Group! At MOL we respect international & cultural diversity. Furthermore he emphasized on the Team Work & Innovation & put forth his expectations that he keeps with the young talent by bringing in change with their creative ideas & innovations.”

MOL Pakistan achieved a remarkable and impressive milestone of 04 Million Lost time injury (LTI) free man-hours for Makori GPF project in September 2013. This mega project is being executed through contractor PDIL and its sub-contractor DESCON. This facility will be able to process 150 MMscfd of gas, 30,000 bpd of oil & condensate and 420 tons / day of LPG. Project was initiated on May 24, 2012 and on average 1,800-2,100 number of workforce has been working on daily basis at the site.Construction sites are considered potentially hazardous and accident-prone all over the world in any working environment. The construction site of this magnitude where heavy machinery is involved, excessive exposure to these site hazards exposes workers to injury and possible death. In spite of these facts, company managed this great achievement through determined safety commitment and implementation of robust safety standards and procedures. Key initiatives that have been taken in this regard include project hazards identification, risk assessments, training

the Colleagues from different countries, cultures and background. Moreover, it also gave them a unique opportunity of improving professionalism and developing their personalities for effective contribution to their work environment. The organizers of the On-Boarding session in Hungary Mr. Vladimir Dujic & Tímea Vörös worked day & night to make this whole event a success. On boarding session opportunity and overall exposure the Growwwers got, would go a long way in enabling them to achieve personal and company’s success.

of work personnel, daily toolbox talks, continuous supervision, inspections and implementation of safety procedures & standards etc. MOL Pakistan management and operation staff is striving to demonstrate that “safe site & safe working is fundamental to overall project success”.

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ARTICLES

MOL Pakistan Management recognizes the significance of employees having long association with the company and values the loyalty shown by them, for which Long Service Loyalty Awards are given in recognition of rendering long services to the company.This was the sixth consecutive year that MOL Pakistan organized Loyalty Award Ceremony. To avail the opportunity of MOL Group Higher Management’s presence in Pakistan, MOL Pakistan’s 6th Loyalty/ Long Service Award Ceremony for the year 2013 was organized to honor and appreciate the comrades who had completed their long association of 10 & 05 Years of Services with the Company.The awards have been distributed among the employees in two different ceremonies, one at MOL Pakistan Field – Central Processing Facility (CPF) on September 17, 2013 and another ceremony at Islamabad Branch Office on September 18, 2013. In both the ceremonies total 40 employees have been awarded; 35 employees on completion of 05 years of services and 05 employees on completion of 10 years of services.The special honor this year was to receive appreciation words by Excellency Mr. Alexander Dodds, Executive Vice President – MOL Group, who gave out motivational speech to the awardees. Mr. Alexander appreciated the awardees on their loyalty, passion

The most important festival of Pakistan, the Independence Day, stirs in every citizen’s heart with a feeling of strong patriotism and passion. It is marked with celebrations throughout the country. Keeping the tradition of celebrating Independence Day actively, MOL Pakistan management decided to arrange traditional Pakistani food festival at MOL Pakistan office cafeteria form August 12 – 16, 2013.The main theme of food festival was to pay tribute to the diversified culture of

& interest to move ahead as a stronger & experienced team for future ambitious & strategic targets of the company. The awards were distributed among the colleagues by the Managing Director / CEO MOL Pakistan Mr. Ferenc Juhasz.Other MOL Group higher Management guests who graced the occasion were Mr. Jozsef Simola - Group CFO, Mr. Jozsef Torkoly - MOL Group E&P International Asset Manager, Mr. Ferenc Farkas - Head of E&P Business Development, Mr. Zsolt Zolyomi - Director Corporate Security.

Loyalty Awards Ceremony

Aazadi Food Festival

Pakistani cuisine varieties. The event included food, decor and the theme itself. Each day was celebrated with mouth watering and delicious cuisine of each province of Pakistan. The food festival kicked off with KPK Pashtun cuisine in its very pashtun style. The lovely aroma of the chappli kabab became tempting and irresistible. Next day, the Punjabi traditional food added more enthusiasm to Azadi Celebrations with its diverse range of dishes. Exclusive dishes of the Punjab

such as sarson da saag and makki di roti were there to depict true Punjabi culture.Followed by KPK and Punjab, there was Sindhi cuisine with a great variety of dishes including Sindhi Biryani and Chicken Hyderabadi. Last but not the least was Baloch cuisine with its full grandeur. Prominent Baloch dishes such as the lamb-skewed Sajji gained massive attention of food lovers.Apart from the relishing food items, MOL Pakistan office – corridors, reception area and cafeteria were decorated in synchronization with Azadi theme which stirred the Azadi spirit among the colleagues who were exhibiting their solidarity and patriotism by displaying lapel pin holder national flags. The young employees finding the surroundings of celebration and jubilance , got them selves pictured. The celebrations continued for over two days.

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HR ACTIVITIE

The pursuit of effective health safety and environment (HSE) performance can be compromised by ineffective leadership. This is an essential process for organizations aiming to achieve ongoing and sustainable improvement in their HSE performance. Strong leadership is critical for an HSE vision to be realized.MOL Pakistan organized a One Day HSE Leadership Program to give Chiefs & Deputy Chiefs the skills to create an environment conducive to behavioral and cultural change. They were shown how they can influence HSE outcomes, given a better understanding of what underpins good performance, and taught the skills to build a culture in which everyone has a sense of ownership. This was achievable through a highly interactive learning process that included in-depth self analysis, training in leadership, HSE management systems and cultural changes.

HSE Leadership One Day Workshop

The program emphasized that addressing HSE should not be seen as a regulatory burden. It offers significant opportunities and benefits that can include:

Reduced costs; Reduced risks; Lower employee absence and

turnover rates; Fewer accidents; Lessened threat of legal action; Improved standing among suppliers

and partners; Better reputation and corporate

responsibility among investors, customers and communities;

Increased productivity, because employees are healthier, happier and better motivated.The training was very absorbing and all participants very energetically participated to keep the spirit of the training alive. The trainer did his best by involving all in healthy and interesting inter team

competitions bringing lot of excitement and interest into what could have been a very dry subject. The event was described by participants as a short but crisp brush up of HSE leadership ideals for which organizers deserved a pat. They were of the opinion that this workshop will contribute towards making employees more competent in health & safety, which will ultimately help our company to avoid the distress that accidents and ill health cause. Such workshop also helps avoiding the financial costs of accidents & occupational ill health.MOL Pakistan is committed to a safe culture by focusing on HSE management system, with strong visible leader-ship from line management setting the example for all, to ensure everyone goes home, without harm, every day”.

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MOL Pakistan MD / CEO Message on MOL Group Life Saving RulesMOL Group has identified common failures that have contributed to several fatalities in the past years. To ensure that these failures are addressed, MOL Group has introduced 10 Life Saving Rules (LSRs):

LSR-1: Do not smoke outside designated areas

LSR-2: Verify energy is isolated before starting work

LSR-3: Obtain and follow a permit to work

LSR-4: Use correct lifesaving personal protcetive equiments (PPE) whenever required

LSR-5: Conduct gas tests whenever required

LSR-6: Do not carry out work in trenches without effective shoring up

LSR-7: Do not remove safety signs or override / disable safety-critical equipment

LSR-8: Do not violate safe lifting rules

LSR-9: No alcohol or drugs while working

LSR-10: Comply and intervene

The LSRs set out clear and simple “DOs” and “DON’Ts” covering activities with the highest potential safety risk. These LSRs apply to all operations under MOL Pakistan operational and / or governance control. Compliance with the LSRs is compulsory for employees and contractors alike. It is obligatory for our workers, leaders, managers and supervisors to make a personal commitment to these LSRs. They must understand and follow them. Safety is always our top pri¬ority and this is based on respecting each other & our rules.It is hoped that strict implementation of these life Saving Rules will go a long way in ensuring safe working environment in the Company.

My message is a simple one

“if any employee of the company or contractors chooses to violate the rules and does his job the unsafe way, then he chooses not to work for MOL Pakistan”. We are deter¬mined to save lives.

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ARTICLES

10 MOL PAKISTAN PANORÁMA

MOL PAKISTAN PANORÁMA 11

MESSAGES

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PANORAMA Pakistan awaits and appreciates your comments.

Feedback:gulfraz.raja@molpakistan.com

MOL PakistanContact details:Plot. 5-A, Crown PlazaF-7 Markaz, Islamabad P.O. Box: 1562 Islamabad 44000Tel: + 92 51 111 665 725Fax: +92 51 2655827www.molpakistan.pk

CRS Public RelationsOfficial PR Agency of MOL Group in Pakistan24 - Nazimuddin Road, F-10/4 Islamabad - PakistanTel: ++ 92 51 2113414-5Fax:++92 51 2113416www.crspakistan.com

gulfraz.raja@molpakistan.com

Driven by the highest standards of corporate governance and social responsibility, MOL Pakistan believes in building strong relations with all the stakeholders with special focus on local communities and the district line departments where it operates to facilitate the stakeholders up to the maximum level of satisfaction.MOL Pakistan has established an independent department (Community Development & Relations Department) at Islamabad office level from where its representatives, based at various locations in the operational area, are engaged in trying to have best of relations with local communities by minimizing the issues related to the company’s business if any. This is done at the grass roots level with an aim to have smooth operations of the company without any disturbance through any quarter.

To achieve this aim ,Community Development & Relations Department thus also arranges Awareness Sessions for local communities in the operational areas where company representatives give out detailed presentation on nature of its operations and what benefits those operations would bring about to the locals of the area. The awareness brief by the Company contain details of its operation, procedures, policies on one hand and acknowledging and thanking for support by the host community for their support & working relationship during these operations on the other .This occasion is also utilized for community feedback and knowing their issues. The rise of issues due to Company’s presence in the area is also discussed and way forward is arrived at. Any delays in resolution of issues related to the community are also explained for the satisfaction of community.Accordingly,an awareness session cum Iftar Dinner was held at Makori on 7th August 2013,at the Hujra(residence) of Malik Abdul Naser ( Makori) which was participated by Maliks and elders of Makori Village. Detailed discussions took place regarding their concerns on various issues including their demand for enhanced rate of land compensation of MKE Ext. FL, besides other general community issues.

Awareness Session/ Iftar Dinner for Makori Elders

The participants repeated their support and cooperation during MOL projects, particularly that of CPF and requested MOL support in turn in resolving their pending issues including payment of Makori-2 and that of communal land at CPF. In response, Community elders were assured that MOL was equally interested to close all the pending issues and suggested for another sitting at CPF and work out solution of the issues. Payment procedure of Communal land at CPF was also explained, and delays were explained to be due to their being heard by the courts. MOL contributions to community development were also highlighted and they were requested to support in resolving all sorts of issues with MOL through dialogue.All the elders agreed unanimously to sit together after Eid to resolve these issues amicably.