mol report

MOL PAKISTAN International HRM

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International HRM 2012

SUBMITTED TO:

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Sir. Sajid Bashir

GROUP MEMBERS:

Ahtasham-Ul-Hassan (mb083064)Arkam Shafiq (mb101019)Sarmad Paul (mb093085)

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ORGANIZATION SELECTED :

MOL Pakistan Oil & Gas Co B.V

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TABLE OF CONTENTDescription Page

No.Executive Summary 3

1. Introduction 4

1.1 Mol History 5

1.21.31.4

Foundation Of Mol PlcMol Group’s Primary ObjectiveManagement Structure

151828

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2. Product & Services Offered

2.1 Products 29

2.2 Services offered 30

2.3 Major Projects

3. Learning Experience 55

3.1 Internship Duration & Rationale for Selection 56

3.2 Details of Training department wise/ Tasks performed

60

3.2.1 Task Performed list 76

4 SWOT Analysis 78

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5 Recommendations 82

Conclusion 83

References: 83

Appendix 84

Acknowledgement 87

Personal Resume 88

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I.Exective Summary

The Hungarian Oil & Gas Company Plc (MOL Rt.) was founded in 1991, and that alone represents a milestone in the history of the Hungarian petroleum industry. It is not only a company that embraces the entire Hungarian petroleum industry, but one that has grown into one of the largest multinational corporations in Central Europe.

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This report is “Brief analysis of MOL” and my research objective is to share my practical experience of professional life which I got during the internship period .The research is based on my findings which I gather during the period and personnel observation.The primary source is interview survey and personnel observation during the internship and secondary source I read

article, text books and internet.

This report is brief description and summary of my work which i perform during eight week in, MOL , plot no.5/a, crown plaza, f-7 markaz,Islamabad. During the period I worked in HR department, the task and duties which were assigned their detail is given below this report. Specially highlight the hierarch structure and function of hr department of MOL . My premise is that Human Resource Management plays a pivotal role towards Organizational Behavior.

This internship program provides me the great opportunity of being exposed to actual business, dealing, and opportunity of professional insight which help me in future. it was a great

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experience for me to work in this organization.My theoretical knowledge about my subjects became potent and strong with the help of practical implication.

In the first chapter introduction MOL , its background, Objectives and Organizational structure & the service it is offering are given. The second chapter is about the learning & experience & the task performed during my internship. The third chapter of the report covers the analysis of report and the findings, which have been observed.Furthermore it analysis in detail strengths, weaknesses, opportunities and threats of the organization. SWOT analysis no doubt acts as a mirror for the management to know the strengths and weaknesses so that it can take appropriate corrective actions. The end of the report is about recommendations based on the analysis in chapter four. It mainly focuses on the recommendations pertaining to management to let MOL capitalize on the opportunities and overcome the weaknesses by using its strengths.

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MOL History

1884

Osaka Shosen Kaisha (O.S.K. Line) is founded.

1930

The 10,142 dwt Kinai Maru begins express service between Yokohama and New York, covering the route in 25 days,17 and a half hours, well below the industry average of 35 days.

1939

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The Argentina Maru and Brazil Maru are launched. These liners, which carry both cargo and passengers between Japan and South America, draw worldwide attention.

1942

Mitsui & Co., Ltd. spins off its Shipping Department to create Mitsui Steamship Co., Ltd.

1961

The Kinkasan Maru, the first freighter with fully automated centralized bridge operations, is launched.

1964

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Japan's shipping industry undergoes a major consolidation, creating Mitsui O.S.K. Lines, Ltd. (MOL), Japan Line, Ltd. (JL), and Yamashita-Shinnihon Steamship Co., Ltd. (YSL) through mergers.

1965

Japan's first specialized car carrier, the Oppama Maru, is launched, allowing more efficient transport of Japan's burgeoning automobile exports.

1967

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MOL adopts the "alligator" logo, designed by illustrator Ryouhei Yanagihara, as the symbol of its worldwide door-to-door container service.

1968

Containerships operated by all three major Japanese shipping companies start services on the Japan-California route -- MOL's America Maru, JL's Japan Ace, and YSL's Kashuu Maru.

1983

The liquefied natural gas (LNG) carrier, the Senshu Maru, is launched.

1988

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ihon Liner System inaugurated, taking over liner operations of JL and YSL.

1989

The launch of the 23,340-gt Fuji Maru, Japan's largest, most luxurious cruise ship, heralds the age of the leisure cruise in Japan. Navix Line is established by the merger of JL and YSL.

1990

A second luxury cruise ship, the Nippon Maru is launched.

1993

Institute of Shipping crew training school is established in Manila.

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1994

The MOL Safety Management System is certified for ISM Code and ISO 9002 international quality control standards.

1995

The Global Alliance (TGA) launches service on the European and North America eastbound routes. MOL's first double-hulled VLCC, the Atlantic Liberty is launched.

1996

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Liner marketing business acquires ISO 9002 certification.

1998

The New World Alliance (TNWA) service starts. Car carrier business acquires ISO 9002 certification.

1999

New Mitsui O.S.K. Lines is established by the merger of MOL and Navix Line.

2000

MOL Environmental Policy Statement established.

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2001

MOL Group Corporate Principles issue

+40 contries where we opearte~34000 no. Of employees ~50 million barrels of oil-equivalent hydrocarbons produced annually+1,600 number of MOL group filling stations~1million customers buying our feuls every day5 strategic refineries we opeartate2 petrochemical facilities we opearate

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Brief Introduction

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The Hungarian Oil & Gas Company Plc (MOL Rt.) was founded in 1991, and that alone represents a milestone in the history of the Hungarian petroleum industry. It is not only a company that embraces the entire Hungarian petroleum industry, but one that has grown into one of the largest multinational corporations in Central Europe.

Please visit the Hungarian Petroleum Industry Museum website (http://www.olajmuzeum.hu/en/alt.htm), where you will find more details on this topic, using the links offered by the various sections that focus on major milestones and significant events:

Mankind has come a long way Ancient origins, modern innovation

Mankind has known about hydrocarbons, appearing on the earth’s surface in the form of accumulations, since very ancient times. However, it was only thousands of years later that these

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http://www.olajmuzeum.hu/en/alt.htm


minerals were systematically utilised. Industrial-scale production and consumption of crude oil, including its processing into a variety of products, only emerged in the 19th century.

The oil lamp

Use of this revolutionary means of illumination spread swiftly throughout the world and required huge quantities of distilled crude oil. Demand grew fast as early as 1860.

The internal combustion engine (ICE)

This pioneering invention has played a critical role in the history of hydrocarbon production, processing and consumption. Widespread adoption of ICS’s significantly increased demand for motor gasoline, gas oil, lubricants and greases - a challenge the emerging refining sector had to meet.

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Developments in Hungary’s refining industry

Up to the 1880’s, developments in the Hungarian petroleum industry faced the same difficulties as the national economy as a whole. Lack of capital, the main bottleneck hampering crude oil production, forced Hungary to import. However, the processing sector was able to develop using feedstock (crude oil) imported from Romania, Galicia and Russia.

Establishment of the first refinery

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The first major refinery was constructed at Fiume, in 1882 (today “Rijeka”, in Croatia), and the Hungarian Petroleum Co. Plc. was founded in Budapest a year later.

After 1882, Hungary’s oil refining sector steadily developed, with 13 operating crude oil processing sites by 1898. Just before World War I, 12 plants alone were producing nearly 80% of total national production, i.e. 560,000 tons per annum.

The First Domestic Refineries

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Hungarian Petroleum Co started operations, in Budapest, in 1884, the Budapest Mineral Oil Plant in 1891, and the Hungarian Crude Oil Refinery Co in 1906.

The Crude Oil Refinery at Almásfüzítő was another major oil installation, constructed by Socony-Vacuum Oil Co. (New York) in 1907.

After World War I, only a few refineries remained in the territory of Hungary as newly-defined by the Treaty of Trianon, and these were merged under the name Fanto Works Co. in 1924 (renamed in 1933 the Fanto United Hungarian Mineral Oil Plants Co.)

Béla Bartha founded the Nyírbogdány Petroleum Plant Co. in 1922, replacing a small unit which had been in operation there for 18 years.

Between 1929 and 1930, Shell Oil (Anglo-Dutch) constructed a state-of-the-art refinery at the port of Csepel, with a capacity as high as 130,000 tons per annum.

The Szőreg petroleum plant was built in 1931 to supply oil products to the South Hungary region.

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In 1937, another plant was completed at Pétfürdő, financed by the State of Hungary, and a state-owned plant with significant refining capacity was commissioned at Szőny, under the name Hungarian Oil Works Co. (MOIL), thus completing the final structure of the refinery sector, which then remained unchanged until 1944.

Hungary becomes a crude oil producing country

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The first investors from abroad

In 1911, Hungarian law first permitted foreign investors to invest in, and acquire licenses for, the exploration and production of hydrocarbons, for the first time, thus joining domestic entrepreneurs. An Anglo-Persian Oil Co. (GB) subsidiary was the first company to seize this opportunity, starting exploration in the Mura river and Izaszacsal area. During World War I, Deutsche Bank also acquired a license for natural gas exploration and production in the Transylvanian Basin.

Difficulties after the Treaty of Trianon

The Treaty of Trianon caused enormous losses to crude oil and natural gas production and although sites were discovered beyond the new national borders, no areas in Hungary had been identified as zones for potential crude oil production. In this situation, the capital-short national

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economy had to base its plans primarily on international capital. In 1920, the Anglo-Persian Oil Co. acquired concession licenses for a 60,000 square kilometre exploration block, but in 1927, it relinquished it, since its subsidiary, the Hungarian Oil Syndicate Limited, had had several years of unsuccessful exploration.

State run exploration efforts

Hungarian state crude oil exploration efforts were successful as early as the 1930’s. In 1937, after intensive geological exploration efforts, commercially recoverable crude oil reservoirs were discovered in the Bükkszék region. At the same time the State was conducting unsuccessful exploration efforts in the Hungarian Lowlands.

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Anglo American capital invested in exploration

In 1931, British and American contractors established the European Gas & Electric Company (EUROGASCO), and started negotiations with the Hungarian Government. The company wanted to acquire oil and gas concessions in Central European oil-poor countries and to build hydroelectric and gas-fired power generation plants. Under an agreement, signed in 1933, the Hungarian State transferred its rights to mineral oil and natural gas exploration to EUROGASCO for an area situated west of the Danube. The company, applying state-of-the-art scientific methods and technology, then started exploration operations in September 1933, drilling its first wildcat wells in 1934.

Promising results

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The first well, drilled at Mihályi in the County of Sopron, produced high-pressure and relative high purity carbon dioxide gas. (Picture: carbon dioxide gas venting off from the Mihályi-1.

well)

Other drillings, however, were not successful for some time. The first successful one was drilled in the County of Zala, near the village of Budafapuszta, in 1936, and revealed commercially recoverable reserves, proving that it was worthwhile drilling exploration wells in Hungary. Based on these promising results, the company drilled a second well, „Budafapuszta-2.”

Restarting oil production in Hungary

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Based on these results, the Hungarian-American Oil Company (MAORT) was founded in 1938, with Standard Oil of New Jersey holding more than 90% of the company. Hungary had once again become an oil producing country through MAORT operations. 1939 oil production met 90% of the country’s needs, while 1940 production in fully satisfied them.

Successful MAORT operations

When EUROGASCO drilled the Budafapusztai 2 well, it provided Hungary with the chance to guarantee supplies to meet ever-increasing crude oil demand, from its own resources. From the very beginning, the focus of attention had always been on MAORT operations. Due to the amount of share capital employed, and its dynamic corporate and business development, it swiftly became one of the largest corporations in the country. By 1941/42, MAORT had defined its full and final organisational structure in Hungary. (Map diagram: sites and locations of MAORT operations).

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The status of sites as of 20th December 1941 reported by the state register was

Bázakerettye Branch

Lovászi Branch

Lendvaújfalu Field

Hahót Exploration well 5

Oil Transportation Pipeline Lovászi-Kerettye-Budapest

Újudvar, Kápolnásnyék and Soroksár Loading stations

Mihályi-1deep well with dry ice plant

Inke1deep well

Geological and geophysical exploration operations in the concession block.

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This was at a time when exploration programmes

were carried out at Nádudvar, Rákóczifalva, Tótkomlós, Szolnok, and at Püspökladány, Törtel, Tatárülés, Nagykőrös, Kaba, Furtazsák and

Jászkarajenő


British and American companies during World War II

Since Hungary was at war with Great Britain and the United States, their interests in Hungary encountered serious problems. In December 1941, the Hungarian State confiscated Shell Crude Oil’s plants, as well as those of Vacuum Oil Co. and MAORT, and they were placed under direct control of the Hungarian war directorate.

Reconstruction – excessive production – nationalisation

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Damages caused by World War II

The Hungarian crude oil industry suffered significant damage during the concluding phases of World War II. Reconstruction was launched immediately after fighting ended. Under the armistice, and the Potsdam peace treaty, concluded between the Allied Forces and Hungary, MANÁT (formerly a German property) was transferred to Soviet Union ownership

Joint Hungarian Soviet ventures

The Hungarian-Soviet Crude Oil Co. (MASZOVOL) was founded in 1946, and started drilling exploration wells in blocks previously owned by MANÁT and the State of Hungary. The first Hungarian-Soviet joint venture well (50%/50%) was drilled in the Hungarian Lowlands near Berekböszörmény, the second at Biharnagybajom.

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MASZOVOL only enjoyed a fairly short period of operations, but, in 1949, was able to discover a natural gas field, near the village of Kaba, in addition to minor crude oil reserves at Körösszegapát and Biharnagybajom. (Picture: wells drilled by MASZOVOL)

Although MAORT’s legal status was once again established in 1945, certain factors emerged that hindered trouble-free operations. These included rapidly rising inflation, Soviet army orders for unreasonable and dangerous increases in production levels, artificially low oil

prices, and unproductive relationships between individual civil servants and the company.

Declining crude oil production

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Crude oil production declined during the post-war period due for several reasons including the enforced and excessive production in the Zala fields which caused a natural drop in recovery ratios, difficulty in striving to create a rational production programme, and financial problems surrounding MAORT. This situation was very harmful indeed to the national economy, and resulted in major conflicts between the Hungarian State and MAORT. The political leadership thought the situation could only be resolved through nationalisation.

Trumped up lawsuit to support nationalisation

In August 1948, certain MAORT senior managers were arrested on charges of industrial sabotage. Business management of the company was taken over by the State in September, and in December 1949 nationalisation took place. In 1948, the infamous MAORT lawsuit, based on trumped-up and specious charges, took place and its detrimental effect caused serious damage to the whole of Hungarian industry, for quite long time thereafter. (Picture: Dr. Papp Simon in

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front of the court, demonstration when MAORT was nationalised) details on the MAORT lawsuit www.oilmuzeum.hu

In 1949, following nationalisation, five national oil companies were formed from MAORT units, under the control of the Transdanubian Mineral Oil Centre. In October 1952, these companies were merged into the Hungarian-Soviet Oil Co. (MASZOIL). MASZOIL, as a single Hungarian-Soviet joint venture (50-50%) constituted the entire Hungarian oil industry until 1954.

Exploration efforts were accelerated and the first positive result was when, in 1951, the Nagylengyel-2 well uncovered

the Nagylengyel oil field. During the 1950’s, Hungary was forced to implement a high-speed

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industrialisation programme and oil demand increased accordingly. This demand could only be met with enforced field production programmes. This had serious adverse consequences, soon recognised at Nagylengyel field as early as 1954. The Nagylengyel wells produced 1.2 million tons of crude oil in 1955.

Following MASZOVOL’s lead, MASZOIL continued appraising the already producing Biharnagybajom field, developed in the Hungarian Lowlands. In 1951, a new oil reservoir was discovered in the Mezőkeresztes area. In 1953, two new natural gas fields were discovered (Nádudvar and Rákóczifalva) thus expanding the volume of identified hydrocarbon reserves.

In East Hungary, hydrocarbon exploration achieved another major success in 1956, following the winding up of MASZOIL in 1954 - the discovery of the Demjén crude oil reservoir.

In 1954, the Lowlands Crude Oil Production Company was established to perform ever-increasing production operations. The scope of these operations was extended to the Szolnok region, in 1955.

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Increasing demand strengthening of the crude oil industry

The Hungarian Oil & Gas Trust is founded

In 1957, the Hungarian crude oil industry was again integrated into a single entity, named the Hungarian Oil & Gas Trust (Hungarian acronym - OKGT), the gas industry joining in 1960. Companies within the Trust were re-structured several times and when the organisation was finally consolidated, practically no changes were made in the crude oil production company until 1991.

After establishment of OKGT, exploration operations continued in the Transdanubian area, near Nagylengyel, and resulted in the discovery of further oil reservoirs. Exploration efforts also proved successful in the Hungarian Lowlands (Algyő, Zsana, etc.).

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By 1950, Transdanubian oil fields were supplying almost 99% of national crude oil production, but as a result of subsequent exploration operations, the onus of production then fell to the Lowlands region. Thus the Lowlands gradually took over the main role of crude oil and natural gas production. (Picture: Tápé-1 well, Zsana gas blow-out)

Tests and studies were carried out to try to restrict the impact of water influx in the fields. As a result of the secondary recovery methods applied in South Zala’s depleting oil fields, additional production was successfully achieved. Exploration operations continued in new areas and were sometimes successful.

Foundation of MOL Plc

The Hungarian petroleum industry in the present day

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After several re-structuring exercises, the Hungarian Oil & Gas Company Plc was founded in 1991, as the legal successor to OKGT, and today the Hungarian petroleum industry operates within the framework of this company. We were able successfully to integrate the entire Hungarian hydrocarbon industry through the establishment of MOL, and only after a carefully considered selection process.

The source of our success

After centuries of exploration, and the development of opportunities to utilise hydrocarbons and implement up-to-date processing methods, Hungary can be rightly proud of its internationally-

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recognised results. Outstanding researchers and leading experts work to ensure optimum operating conditions for the Hungarian hydrocarbon industry, as well as first class opportunities for training and education.

MOL Group at a glance

MOL Group (“MOL” or “the Company”) comprises MOL, Hungary’s largest enterprise, the Slovakian oil company Slovnaft, the leading Hungarian petrochemical company TVK, the Austrian retail and wholesale company Roth, the Italian refining and retail company IES and the Croatian retail network Tifon. In addition, MOL has a strategic partnership with the Croatian national oil and gas company, INA (including a 25% stake), the Czech electricity group, CEZ and the Oman Oil Company (OOC), having 7 and 8% stake in MOL respectively.

MOL’s activities focus primarily on its core geographic region. It has close to 1,000 Filling Stations and exploration and production facilities in eight countries in Europe, the Middle East,

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Africa and the CIS states. MOL has upstream, downstream, petrochemical and gas transmission operations in over forty countries and is market leader in each of its core activities in Hungary and Slovakia.

MOL has produced Europe’s fastest growth in shareholder return in the past ten years, ahead of all its major industry peers on the continent, excluding Russian companies. MOL’s market capitalisation is worth around USD 16bn. The Group employs some 15,000 people, worldwide.

While focused on financial and business results, the Company has made significant advances in its social and environmental performance and corporate governance and is fully committed to Sustainable Development. Accordingly, it has systematically improved its operations and is making sustainability an intrinsic part of its corporate strategy.

In the field of alternative energies, MOL has initiated a range of activities in support of sustainability principles. MOL was among the first companies in Europe to produce sulphur-free

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“One company, one

goal, continuous

opportunity”


motor fuels, to blend bio-fuel and to advance the introduction of geothermal energy, thus systematically reducing Hungary’s carbon footprint.

As a result of MOL’s success, the Company has become an attractive destination for potential employees, permitting the development of an international pool of expert talent. In recent years, MOL has developed an outstanding employee compensation and benefit scheme, while offering strong international career opportunities.

Steps In Regional Expansion 2000

Acquisition of 36.2% of Slovnaft Acquisition of 32.9% of TVK 2001 Control gained over TVK (stake 34.5%) 2002 Control gained over Slovnaft (stake 70.0%)

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“One company, one

goal, continuous

opportunity”


ZMB joint-venture signed 2003 Acquisition of 25% of INA Acquisition of Austrian storage facility Acquisition of Shell Romanian Filling Stations 2004 Acquisition of a 98.4% stake in Slovnaft, through public offering - full integration of Slovnaft Acquisition of Roth, Austria 2005 Acquisition of Shell Romania 2007

2007 Events

19th July MOL and INA announce the discovery of a new natural gas field near Zaláta, in southern Hungary

31th July MOL announces acquisition of IES

2nd August MOL announces acquisition of Tifon

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30th August MOL signs a Memorandum of Understanding for a strategic cooperation with CEZ

9th October MOL announces cooperation with Qatar Petroleum to exploit new and existing oil and gas fields

6th November

MOL announces acquisition of a 40% stake in an offshore Cameroon block

7th November

MOL announces production-sharing agreements in two Kurdish blocks in Northern Iraq

5th December

MOL announces initiative to create a joint gas transmission company in Central & South East Europe.

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MOL Group’s primary objective

MOL Group’s primary objective is to provide superior shareholder returns. It will achieve this by fully exploiting its market potential, implementing dynamic development and expansion strategies, and achieving, where possible, further internal efficiency improvements. MOL also aims to triple its hydrocarbon production and double its sales of refined products, by 2010.

MOL: the leading regional integrated, independent oil and gas company

Leading

Group profitability among the highest in the sector Outstanding operational efficiency, highly competitive asset base

Regional

Leverage of favourable geographical position, strategic advantages and skills

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Optimised logistics Successful combination of organic and acquisitive growth

Integrated

Balanced portfolio based on regional Downstream growth and the geographic expansion of Upstream activities.

Optimisation of synergies within the Group along the value chain from Exploration to core Petrochemicals Independent Oil and Gas company

Delivering on strategic plan Strong track record on delivering value through partnerships and infrastructure development Further capital withdrawal from non-core assets to focus on core businesses.

The Hungarian Petroleum Museum

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The Museum is located at Zalaegerszeg, and collects, arranges and presents artifacts from the Hungarian hydrocarbon industry.

The Hungarian Petroleum Museum is national and specialised. It has been collecting, arranging and presenting, both through exhibitions and publications, Hungarian hydrocarbon industry artefacts, since its foundation in 1969.

Enlarging the collection

In the central Museum facility at Zalaegerszeg, there is a special exhibition paying homage to the celebrated geologist, Dr. Simon Papp. The Zsigmondy Memorial Room also deserves a visit

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for those interested in the life and times of great Hungarian petroleum industry and underground water production personalities.

The collection grows richer and richer: since the 1993 acquisition of the Zsigmondy Vilmos Collection, the Museum has collected and preserving historical hydrocarbon industry and underground water production artifacts. The Hungarian Petroleum Museum established a permanent exhibition at Vecsés in 1995, where visitors can study crude oil and natural gas pipeline transportation artifacts. In addition, in Bázakerettye, there is an exhibition presenting oil sector artifacts in a former plant shed, opened in 2001.

Open air sites

The Museum is also proud of having a permanent open air section: technical hydrocarbon industry artefacts are on show in a 30 000 m2 area, at Zalaegerszeg, next to the Göcsej Village

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Museum. The statue park featuring great Hungarian petroleum industry personalities can also be visited at this site.

The indoor exhibition hall, on the other hand, presents the technical and technological history of the industry’s development, and visitors can also learn more about the activities and oeuvre of the Zsigmondy family.

If you want something really special, then hike along the „History of Industry” trail, opened in 2003: the trail, named “memorial sitesof the hydrocarbon industry” invites you to enjoy a 220 km walking experience in the Zala-Mura region, which also covers the Slovenia and Croatia border areas.

A presence in scientific life

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The Hungarian Petroleum Museum has regularly issued its own publications since 1974 and publishes one or two books a year in a series entitled „Museum Publications”. The Museum’s research experts also regularly contribute articles to other periodicals and professional publications.

The Foundation of the Hungarian Petroleum Museum has funded the Museum since 1991, and founding members include the Hungarian Oil & Gas Trust, Budapest Bank and the Hungarian Hydrocarbon Research & Development Institute.

MOL Europe

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MOL Europe is part of the liner division of Mitsui O.S.K. Lines, founded in 1884 in Japan. As a whole, MOL is one of the largest shipping companies in the world and liner operations count for some 40% of oversees shipping.

MOL distinguishes itself from its competitors by operating trades between all continents. The European Head Office is based in Poortugaal (the Netherlands) and manages all trades in and from the EMEA area, covering Europe, Asia, Africa and North America.

Global Organization

Like many multinational organisations, MOL has divided the world in three areas: Asia & Australia, Europe & Africa and North & South America. Each area has its own Area Head Office and is responsible for (part of) the Trades to and from their area and of course, for the Trades within the area. In addition, the area head offices coordinate the regional offices which

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take care of the operational and logistic activities in the ports and hinterland. Worldwide, over 8.500 people work in MOL.

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Marine crew and vessels are managed centrally from Japan. MOL has its own marine education centres in Croatia, the Philippines and India.

MOL Europe

MOL Europe manages trades to Asia, Africa and North-America and coordinates six regions in Europe and three in Africa. In Europe, MOL employs nearly 600 people and in Africa approximately 250.

The head office holds general departments such as finance, hr, marketing and administration but also more specific functions like trade management, business process, yield management, cost & logistics and marine operations.

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The regions typically have customer service for imports, exports, logistics and sales as their main functions.

The area organization within Europe is divided into 6 regions: UK& Ireland, Nordic, Centre, West Med, South and West. Each region has its own management team which is lead by the Regional General Manager and the local management team. Regional head offices are located in Southampton, Goteborg, Poortugaal, Hamburg, Le Havre and Genova.

The European Head office is truly international. Aside from Japanese and Dutch colleagues you will find people from all over Europe and beyond, like India, South-Africa and Taiwan; they amount to almost fifty percent. Although the Regional offices have a more local flavour, they are an integral part of MOL’s international network.

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MOL Information Technology

A couple of years ago, MOL decided to split the IT activities from the operational business division. The main purpose was to create a global IT organisation, which looks after the office IT environment and develops our own ERP system which is used to facilitate the operational processes.Although the development centres are not based in Europe, the European branch of MOL-IT still has a wide range of positions ranging from EDI development to Helpdesk to System Administrators.

MOL Liner Business

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Container shipping is a fascinating industry. Almost everything you can buy in a shop or store has been shipped in a container. Whether it is fruit,

car parts, clothing, toys, audio equipment or Christmas decorations: good chance that it was shipped in a container.

Seasons, economy, politics and demography all have an impact on the volume of cargo being transported.

“Liner business” refers to the sailing schedule of the container ships, which operate fixed lines and times and calls

at standard ports. In a way, it can be compared to a bus or train schedule.

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MOL operates various lines between continents. In Europe, we focus on the Europe – Asia, Europe – Africa and Europe – North America lines or Trades. The ships sail in a loop, calling at various ports in the departure and destination region and often at strategic ports along the way as well.

It can take a ship up to 56 days to complete the Asia – Europe loop. Because MOL wants to offer a weekly schedule, we have eight ships sailing in the same loop. This allows a weekly coverage for every port. The ships in a loop are usually supplied by a group of companies, called alliances. MOL is part of The New World Alliance (TNWA), together with Singapore based APL and Hyundai Merchant Marine from South Korea.

Each Trade has different dynamics. The Europe – Asia Trade is dominated by a large volume of light weight cargo coming to Europe, whilst less -albeit heavier- cargo is shipped to Asia. The Africa – Europe Trade knows many commodities such as cacao, cotton, etc; many of them are

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seasonal. The equipment used to ship this cargo is different from the standard containers which are predominantly used in the Europe – Africa route. The Transatlantic Trade is primarily influenced by the exchange rate of the US dollar.

The volume of cargo that is being transported over sea is continuously increasing. Shipping companies adapt to this by introducing more, and larger, vessels. It also affects the ports, which have to make sure that they can harbour these bigger ships and manage the in- and outflow of containers. This is the reason that for example Rotterdam, Hamburg and Antwerp have ambitious expansion plans. MOL is part of a joint venture that will build and own a large container terminal on the Maasvlakte II in Rotterdam, to be completed in 2013.

The container business is very competitive. The players in the field watch each others behaviour closely and respond immediately when the competition adjusts their rates or changes their services.

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All these aspects are important to the day to day operations of MOL. Every department, from imports to marketing, has to make sure that they optimise not only their internal processes but the cooperation with other departments as well.

MOL as an employer

“MOL is a big international company with the personality of a small family”

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Shipping is a global business – it is exciting to realise that when you are working for MOL you are part of the process of moving millions of goods around the world!MOL is a strong, solid and sizeable company with a healthy ambition for growth.

Due to our size, our global presence and our plans for growth, there are always job opportunities and possibilities for career development. Opportunities need to be recognised and grasped by the individual but as a company we do our best to facilitate our talented and dedicated people to move on within the company. In fact, many of our managers have grown from within. This does not happen overnight and therefore MOL has a large commitment to training and development activities. This can range from traineeships, training-on-the-job, temporary assignments, project work to formal classroom training sessions and individual development planning. In our regular performance management cycle we like to discuss and acknowledge your near past performance but a significant part of our discussions will also be centred around future aspirations and development needs.

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MOL is able to create opportunities for personal and professional growth thanks to the variety of roles and its presence in various geographical regions both within Europe and worldwide.

Many career opportunities

In the past years we have developed the so called LOM program (Learning Opportunity for future Managers) which is a 2 year trainee scheme with a wider European focus. Besides this European initiative we also started a global career development program named MOL POWER which prepares our talented people for strategic and global roles.

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Corporate values

Teamwork, Trust, Honesty, Respect, Risk taking, Customer focus, Timely & open communication.

MOL Corporate Information

Mitsui OSK Lines was formed in 1964 by a merger that joined Mitsui Steamship Company with OSK Lines and, as such has a pedigree stretching back more than a century, to the origins of Japanese shipping companies.Today MOL operates one of the world’s most extensive and efficient transportation and

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distribution systems offering total logistics solutions that include air, sea and road transportation, all supported by vast data communication networks.

Internships and Traineeships

MOL supports students who want to do an internship, traineeship or practical training in our company. Usually the internship will be a “work along” type of training but it might also be possible to do your thesis project in MOL, provided that the subject and framework are sufficiently in line with our activities.

The terms and conditions for an internship vary per country, but in general we do not engage in internships shorter than four months and/or less than four days per week.The financial compensation depends on the country and the school you attend.

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MOL has two in-house trainee programs. A European programme (LOM) of two years for young professionals with management potentials and a global programme (POWER) of four years for colleagues who aspire an international career. At the moment, both programs are exclusively available for internal candidates but in the future one or both programs might be open for eMOL Europe.

MOL Pakistan' operations in Pakistan

MOL Pakistan, a fully owned subsidiary of the MOL Group (www.molgroup.hu) registered in Netherlands has been working in Pakistan since 1999.

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MOL Pakistan is committed and dedicated to the balanced integration of economic, environmental and social factors into its everyday business operations and to maximise long-term stakeholder value to safeguard its licence to operate. MOL Pakistan operates in a profitable, safe and an ethically acceptable way by paying due regard to its environmental and social responsibility.

Currently, it is led by Mr Erno Liptak, Managing Director, who brought a wealth of international experience in exploration and production projects from across the globe to ensure that MOL Group achieves its desired position and long-term goals in Pakistan.

MOL Pakistan presently produces Oil & Gas from TAL Block as the operator of the concession. It also holds concessions for Margala and Margala North Blocks and has recently acquired

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significant shares in the Karak block as non-operating partner which is considered as another promising prospect for the future discoveries.

MOL Pakistan is always on the look for further investment opportunities in Exploration and Production (E & P) sector of Pakistan through involvement in further Exploration Blocks and acquisition of state owned upstream/downstream opportunities available for privatization. MOL Pakistan sincerely believes that its E & P skill inventory gathered over the period of time can positively contribute towards the self-sustainability of Pakistan’s energy needs.

Tal Block

The Government of Pakistan granted Tal Petroleum Concession & Exploration License to MOL in Tal Block (3370-3) with the Oil & Gas Development Corporation Ltd (OGDCL),

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Pakistan Petroleum Ltd (PPL) and Government Holdings (Pvt.) Ltd (GHPL) as joint venture partners on February 1999, Pakistan Oilfields Ltd (POL) also joined the TAL consortium in 2001.

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The Tal Block is located in NWFP and is spread over the areas of districts Kohat, Karak, Hangu and Bannu and some areas of North Waziristan and Orakzai agencies of Federally Administered Tribal Areas (FATA). MOL Pakistan as Operator of TAL Block has three successive discoveries to its credit. First was Manzalai from where production will start at 250MMSCFD after its Central Processing Facility (CPF) in Manzalai Development & Production (D&P) Lease is completed in early 2009. Makori, the second discovery, is currently under Extended Well-Head Testing (EWT) appraisal phase. It is expected to be a profitable venture, by the year 2009.

Third and recent discovery named as Mami Khel is also under consideration for appraisal phase. MOL Pakistan along-with TAL Joint Venture Partners would proudly be catering for more than 75% energy requirements of NWFP with start up of Manzalai CPF.

Currently, MOL Pakistan is supplying around 35MMSCFD gas and 500 barrels per day of condensate from Manzalai Field, which would be increased to 250MMSCFD gas, and 4,200 barrels per day of condensate with start of production from Manzalai CPF. In addition to

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Manzalai production, MOL Pakistan is supplying around 30MMSCFD associated gas and 2,000 barrels per day of condensate from Makori Field.

It is expected that the above mentioned discoveries in the Tal Block will add significant reserves of oil and gas in the North of the country which has historically been a gas prone area. Surely, a large number of domestic, commercial and industrial consumers will benefit from these discoveries especially during winter months, when severe shortages of gas occur and life comes to a standstill.

So far MOL, along with its JV Partners, has made an investment of US$ 303 million (cumulative, as of Dec 31, 2007) and a total of another US$ 221 million investment is planned for the year 2008.

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Margala & Margala north blocks

MOL Pakistan is also the Operator of the Margala and Margala North Blocks, covering area of the Federal Capital and parts of Punjab and NWFP, where POL is a joint venture partner. These Blocks were awarded to MOL on Nov 08, 2006.

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Preliminary studies of field geological and environmental studies have already been completed. In-house interpretation of existing seismic and well data has also been completed and new 2D seismic acquisition campaign has already been started in July, 2008.

Karak Block

MOL has recently signed a deal with Mari Gas Company Limited (MGCL) to buy 40 percent stake in the Karak exploration block in Pakistan.

As part of the deal Mari Gas, which is one of the largest oil and gas exploration firms in Pakistan, would get a 25 percent stake in a block owned and operated by MOL in Oman.This partnership allows both MOL and Mari Gas to diversify their exploration portfolios and further extend MOL’s presence in Pakistan.

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Management Strucutre


Products & Services

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Products


Fuels Lubricants & Autochemicals

LPG

Services

Motorway ticket sale Gastro Medicine sale Telephone card sale

and charging

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http://www.mol.hu/en/drive_with_us/product_and_services/services/motorway_ticket_sale/

http://www.mol.hu/en/drive_with_us/product_and_services/services/gastro/

http://www.mol.hu/en/drive_with_us/product_and_services/services/medicine_sale/

http://www.mol.hu/en/drive_with_us/product_and_services/services/telephone_card_sale_and_charging/


Insurance Lottery (gambling) MOL wash Fast lane

Safety environmental protection sustainable development

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http://www.mol.hu/en/drive_with_us/product_and_services/services/insurance/

http://www.mol.hu/en/drive_with_us/product_and_services/services/lottery_gambling/

http://www.mol.hu/en/drive_with_us/product_and_services/services/mol_wash/

http://www.mol.hu/en/drive_with_us/product_and_services/services/fast_lane/


Safe car fill-up Collection of medicineswith expired warranty date

Collection of used car

batteries and dry batteries

Collectionof used oil

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http://www.mol.hu/en/drive_with_us/product_and_services/safety_environmental_protection_sustainable_development/safe_car_fill_up/

http://www.mol.hu/en/drive_with_us/product_and_services/safety_environmental_protection_sustainable_development/collection_of_medicines_with_expired_warranty_date/

http://www.mol.hu/en/drive_with_us/product_and_services/safety_environmental_protection_sustainable_development/collection_of_used_car_batteries_and_dry_batteries_cells/

http://www.mol.hu/en/drive_with_us/product_and_services/safety_environmental_protection_sustainable_development/collection_of_used_oil/


Customer Service

eVirtual Card Centre

ISA motor fuel orderingOrder motor fuel for your company on the internet!

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Wholesale Customer ServiceOur agents of the Wholesale Customers Service Centre are waiting for your questions, observations and orders.

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Lubricant Services

Bunker ServiceAt the service of shipping! During the bunkering procedure the supplying ship, the so called bunker boat equipped with fuel tanks, fills fuel into the tank of the other ship.

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General information

Information about our products and services:

In addition to providing general information we also forward our future partners’ ordering requests to the business representatives.

Information about ongoing orders and invoice related questions/ billing issues:

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If you would like to get information on your actual orders or accounts our agents will assist you!

Reception and inquiry of complaints and remarks:

Do you have product or service-related question, remark or complaint? Contact the Customer Service Centre! We provide answers and assistance and help you finding a solution.

Information about the Virtual Ordering Centre (VOC):

This service is only available for our contractual partners who have a password for the Virtual Order Centre. Our agents provide assistance in using the VOC. If you would like to

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use our VOC but do not have the necessary prerequisites, please indicate your request at the Customer Service Centre.

Exploration and Production

MOL Group endeavours to broaden the sources of its raw materials. Its exploration and production (Upstream) activities have the vital task of seeking new reserve replacement opportunities in various parts of the world.

This segment contributes to MOL Group cash flows through the exploration, field development, acquisition and production of existing and new hydrocarbon reserves at internationally competitive cost levels.

The source for profitable growth in the Upstream segment should be the realization of a focused

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international upstream growth strategy. This - in addition to the successful operation of existing projects - aims to identify and exploit newopportunities for further growth in accordance with MOL’s efficiency criteria, in order to achieve our target of increasing the upstream integration of the Group.

Upstream Portfolio

The current upstream portfolio consists of producing assets in 7 countries and assets with further exploration potential in all 15 countries where MOL Group is present. upstream map. Following numerous relatively smaller acquisitions in recent years, MOL has added significant impetus to its further growth by gaining operative control of INA and through the acquisition of 10% in Pearl project.

By the end of 2009 MOL Group increased significantly its 2P reserves to 665.1 Mmboe from 532.6 MMboe at the end of 2008, as a result of our further successful exploration activities and

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full consolidation of INA. Average production was 108,000 boe/day in FY 2009 and it was 142,500 boe/day in Q4 2009. Despite the challenging market environment, MOL remained one of the most profitable upstream players as a result of several optimization and efficiency increasing programs carried out in 2009. 2009 was a key milestone in MOL’s upstream history dramatically redrawing MOL’s

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World wide ActivitiesMOL Group’s upstream operations expands in Central Europe, the CIS countries, Middle East, North Africa and Far East.

We focus on international exploration and production activities, building on the experience we have developed internationally in recent years, and will focus on projects in the development and production phases, in selected attractive core geographical regions.

In the development of MOL Group’s exploration and production portfolio we regard it as a

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priority to utilize to the maximum extent the resources available within the Group, also building on a very close cooperation with INA and its experts.

Hungary Russia Pakistan Iraq Kazakhstan Cameroon Oman

India

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INA


INA's full consolidation had major effect on our upstream activities

By gaining operative control and fully consolidating INA, the upstream portfolio has been significantly increased in terms of reserve base, production and number of assets, while our position in the CEE region has been markedly strengthened.

According to SPE standards, INA’s 2P reserves amounted to 325.1 MMboe at the end of 2009, while average daily production was approximately 56,600 boe/day in the full year of 2009, out of which crude production amounted to 23,200 bbl/day (down by 5.5% compared to 2008) while gas production was 33,400 boe/day (down by 2.8% compared to 2008).

Name: MOL Hungarian Oil and Gas Company

Legal form: Plc

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Headquarter: Hungary, Budapest, Október huszonharmadika u. 18, H-1117Ownership structureMOL capital and shareholder structure (approximate)

The Company’s share capital amounts to HUF 104,519,063,578 represented by 104,518,484 pieces registered ordinary shares of the series “A” with a par value of HUF 1,000 and 578 pieces registered ordinary shares of the series “C” with a par value of HUF 1,001 and one piece registered voting preference share of the series “B” with a par value of HUF 1,000 that entitles the holder thereof to preferential rights as specified in the present Articles of Association. The "B" series share is owned by the Hungarian Government.

We have presented the ownership structure of MOL Plc., as at 31 March 2011, with consideration for notifications of ownership resulting from legal obligations.

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Key figures (2010):

Net sales revenue: 4,298.7 bn HUF (20,657 mn USD)

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Market capitalization: 10 bn USDNumber of employees: 32,601 (as total workforce on December 31, 2010., including INA employees)Number of filling stations: 1,623Gross crude oil reserves (MM bbl): 271.0Total refinery throughput (kt): 21,834Gross natural gas reserves (MM boe): 347.8Total crude oil product sales (kt): 20,940Total petrochemical product (olefin and polymer) sales (kt): 1,415

MOL policy

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MOL has always been committed to implementing the highest standards of corporate governance structures and practices. This is not only with regard to national expectations but also with reference to the continually evolving and improving standards of good governance on an

international level. As a result MOL is geared towards shareholders’ interests, whilst taking into account the interests of a broader group of stakeholders inevitably necessary to enhance the generation of exceptional value for MOL’s shareholders and people.Among other things, the voluntary approval of the declaration on the Budapest Stock Exchange Corporate Governance Recommendations by the Annual General Meeting in 2006, before the official deadline, served as testament to the Company’s commitment to corporate governance. In addition, MOL made a declaration concerning the application of the corporate governance recommendations of the Warsaw Stock Exchange prior to the admission of its shares to the Warsaw Stock Exchange in December 2004. The Company submits its declaration on this topic to both stock exchanges each year.

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MOL’s corporate governance practice meets the requirements of the regulations of the Budapest Stock Exchange, the recommendations of the Hungarian Financial Supervisory Authority and the relevant regulations of the Capital Market Act. MOL also subjects its policies to regular review to ensure that they take account of continually evolving international best practice in this area. MOL’s Corporate Governance Code containing the main corporate governance principles of the Company has been adopted in 2006 and has been updated in 2010. This Code summarises its approach to shareholders’ rights, main governing bodies, remuneration and ethical issues. The Corporate Governance Code has been published on the homepage of the Company.In 2011, MOL Group, the only Central & East European company to be in the running, has qualified for the SAM Gold Class based on its performance in the field of corporate sustainability. This was announced in The Sustainability Yearbook edited by SAM (Sustainable Asset Management) which conducts the performance research and analysis for the Dow Jones Sustainable Index. The 2,500 largest global companies, based on the Dow Jones Stock Market Index, are invited to undergo the research. The independent assessors examine the three

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dimensions of sustainability: long-term economic, social and environmental performance. Accordingly, the top 15% of companies from 58 business sectors are selected to appear in the Yearbook. MOL Group received the Bronze qualification in the last year, as well as being selected as the best “Sector Mover”. All the good work performed last year enabled the company to enter the SAM Gold Class category. To qualify for the SAM Gold Class, the SAM Sector Leader must achieve a minimum total score of 75%. Peer group companies whose total scores are within 5% of the SAM Sector Leader also enter the SAM Gold Class. This year out of 113 global oil companies, 68 were examined in detail with 17 being selected to appear in the Yearbook of which 8 entered the Golden Class category. According to SAM’s assessment, the Corporate Governance practice of MOL is outstanding, and its result is above the industry average. The evaluation criteria consisted several topics, e.g. board structure, corporate governance policies or transparency.

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Executive Directors

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Mr. Zsolt Hernádi


Between 1989-1994 he occupied various posts at the Kereskedelmi és Hitelbank Plc., and between 1992-1994 he was its Deputy General Manager. He was CEO of the Central Bank of Hungarian Savings Cooperatives between 1994 and 2001, and a member of its Board of Directors between 1994 and 2002. Between 1995 and 2001, Mr. Hernádi was Board member of the Hungarian Banking Association. Since 2001, he has been a member of the European Round Table of Industrials.

Since September, 2009 he has become the honorary citizen of the Corvinus University of Budapest.

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Board Of Directors

Mr. Zsolt Hernádi

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Chairman of the Board of Directors since 7th July, 2000, Chairman & Chief Executive Officer since 11th June, 2001, member of the Board since 24th February, 1999. Member of the Corporate Governance and Remuneration Committee.

Between 1989-1994 he occupied various posts at the Kereskedelmi és Hitelbank Plc., and between 1992-1994 he was its Deputy General Manager. He was CEO of the Central Bank of

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Hungarian Savings Cooperatives between 1994 and 2001, and a member of its Board of Directors between 1994 and 2002. Between 1995 and 2001, Mr. Hernádi was Board member of the Hungarian Banking Association. Since 2001, he has been a member of the European Round Table of Industrials. Since September, 2009 he has become the honorary citizen of the Corvinus University of Budapest.

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Zsolt Hernádi (50)

Chairman of the Board of Directors since 7th July, 2000, Chairman and Chief Executive Officer since 11th June, 2001, member of the Board since 24th February, 1999.Member of the Corporate Governance and Remuneration Committee. Between 1989-1994 he occupied various posts at the Kereskedelmi és Hitelbank Plc., and between 1992-1994 he was its Deputy General Manager. He was CEO of the Central Bank of Hungarian Savings

Cooperatives between 1994 and 2001, and a member of its Board of Directors between 1994 and 2002. Between 1995 and 2001, Mr. Hernádi was Board member of the Hungarian Banking Association. Since 2001, he has been a member of the European Round Table of Industrials.Since September, 2009 he has become the honorary citizen of the Corvinus University of Budapest.

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József Molnár (55)

Group Chief Executive Officer since 1st May 2011, and member of the Board of Directors since 12th October 2007.Member of the Supervisory Board and Audit Committee of INA d.d. since April 2010. From 1978 to 2001, Mr Molnar held various management positions at BorsodChem Plc, including Head of Pricing Department from 1982 to 1987, and Head of Controlling Department from 1987 to 1991. Between 1991 and 2001, as Chief Financial Officer and first

deputy to the CEO, he contributed to the crisis management and reorganisation of the company, and later to the creation of its vision, and subsequent privatisation. He played a key role in the stock exchange listing of BorsodChem shares. He was CEO of TVK between 2001 and 2003, and MOL Group Planning & Controlling Director until his appointment as Group CFO in

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September 2004. He was a Board member of SLOVNAFT a. s. between 2004 and 2008 and he was a Board member of TVK between 2001 and 2011. Group Chief Financial Officer between 2004 and 2011.

Board of Directors

MOL’s Board of Directors acts as the highest managing body of the Company and as such has collective responsibility for all corporate operations. The Board’s key activities are focused on achieving increasing shareholder value with considerations onto other stakeholders’ interest; improving efficiency and profitability and ensuring transparency in corporate activities and sustainable operation. It also aims to ensure appropriate risk management, environmental protection and conditions for safety at work.

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Given that MOL and its subsidiaries effectively operate as a single unit, the Board is also responsible for enforcing its aims and policies and for promoting the MOL culture throughout the entire Group.

The principles, policies and goals take account of the Board’s specific and unique relationship with MOL’s shareholders, the executive management and the Company. The composition of the Board reflects this with the majority (eight of eleven members) made up of non-executive directors*. At present, 8 members of the Board of Directors qualify as independent on the basis of its own set of criteria (based on NYSE and EU recommendations) and the declaration of directors.

The members of the Board of Directors and their independence status (professional CVs of the members are available on corporate homepage):

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Zsolt Hernádi, Chairman-CEO non-independent

Dr. Sándor Csányi, Vice Chairman independentMulham Al-Jarf independentDr. Miklós Dobák independentDr. Gábor Horváth independentZsigmond Járai* independentJózsef Molnár non-independentDr. László Parragh* independentIain Paterson independentDr. Martin Roman* independentOszkár Világi** non-independent

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* Before Zsigmond Járai, Dr. László Parragh and Dr. Martin Roman, until 29 April 2010 László Akar, Miklós Kamarás and Dr. Ernő Kemenes were the members of the Board of Directors.** Before Oszkár Világi until 30 April 2011 Görgy Mosonyi was the members of the Board of Directors.

Operation of the Board of Directors

The Board acts and makes resolutions as a collective body.

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The Board adopted a set of rules (Charter) to govern its own activities when the company was founded in 1991; these rules were updated in October, 2010 to ensure continued adherence to best practice standards.

The Board Charter covers:

scope of the authority and responsibilities of the Board,

scope of the committees operated by the Board,

the scope of the information required by the Board and the frequency of reports,

main responsibilities of the Chairman and the Vice Chairman,

order and preparation of Board meetings and the permanent items of the agenda, and

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decision-making mechanism and the manner in which the implementation of resolutions is monitored.

Members of the Board have signed a declaration on conflict of interest and they have reported their position as director in the Board to their employer or principal as regards other key management positions.

The Board of Directors prepares a formal evaluation of its own performance (the Committees evaluate their performance as well) and it reviews continuously its activity on a yearly basis.

Committees of the Board of Directors

The Board operates committees to increase the efficiency of the Board’s operations, and to provide the appropriate professional background for decision making. These Committees have

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the right to approve preliminary resolutions concerning issues specified in the Decisionmaking and Authorities List, which sets out the division of authority and responsibility between the Board and the executive management.

The responsibilities of the Committees are determined by the Board of Directors. The Chairman of the Board of Directors may also request the Committees to perform

certain tasks.

The members and chairs of the Committees are elected by the Board of Directors. The majority of the committee members is non-executive and independent.

The Board allocates responsibilities to the various Committees as follows:

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Corporate Governance and Remuneration Committee:

Members and dates of appointment (professional backgrounds of members are available on company homepage):

Dr. Sándor Csányi – Chairman, 17 November 2000 Zsolt Hernádi, 8 September 2000 Dr. Gábor Horváth, 8 September 2000 Dr. Martin Roman, 29 April 2010 * Mulham Al-Jarf 23 April 2008

* Before Dr. Martin Roman until 29 April 2010 Miklós Kamarás was the member of the Corporate Governance and Remuneration Committee.

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Responsibilities:

Analysis and evaluation of the activities of the Board of Directors, Issues related to Board membership, Promoting the relationship between shareholders and the Board, Procedural, regulatory and ethical issues, Reviewing corporate processes, procedures, organisational solutions and compensation

systems and making recommendations on the introduction of best practice standards.

Finance and Risk Management Committee:


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Dr. Miklós Dobák – Chairman, 25 October 2002 Zsigmond Járai, 29 April 2010 * Iain Paterson, 8 September 2000

* Before Zsigmond Járai until 29 April 2010 Dr. Ernő Kemenes and László Akar were the members of the Finance and Risk Management Committee.

Responsibilities:

Review of financial and related reports, Monitoring the efficiency of the internal audit system, Review of planning, scope and results of the audit, Oversight of the risk management,

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monitoring the liquidity position of the Company, the financial and operational risks as well as the methodology and strategy of management thereof, review the operation of Enterprise Risk Management (ERM) system,

Ensuring the independence and objectivity of the external auditor.

Sustainable Development Committee:


György Mosonyi – Chairman, 29 June 2006 Dr. László Parragh, 29 April 2010* Iain Paterson, 29 June 2006

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* Before Dr. László Parragh until 29 April 2010 Dr. Ernő Kemenes was the member of the Sustainable Development Committee.

Responsibilities:

Control of the operation under long-term economic, environmental and social aspects, Evaluation of objectives and results regarding sustainable development, Supervision of the non-financial (sustainability) chapter and the audit process of the

annual report, Accountability for sustainability performance of business divisions and subsidiaries.

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Relationship between the Board and the Executive Management

The governance of the Company is carried out in line with standardised corporate governance principles and practice, and, within its framework, the Board of Directors will meet its liabilities for the integrated corporate governance by defining the responsibilities and accountabilities of the Executive Board, established by the Board and securing the corporate operative activities, operating and organisational procedures, as well as standardised system for target-setting, reporting and audit (performance control system and business control system).

A consistent document prescribes the distribution of decision-making authorities between the Board of Directors and the company’s organisations, defining the key control points required for efficiently developing and operating MOL Group processes.

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Control and management of MOL Group will be implemented through business and functional organisations. The Executive Board (hereinafter “EB”) will be responsible for harmonising their activities.

The EB is a forum for decision preparation and its role is to provide a direct link between the Board of Directors and the Company’s staff and at the same time canalize the matters submitted to the full Board. The EB renders preliminary opinions and advises the Board members on certain proposals submitted to the full Board, the EB is also responsible for the oversight of the execution of the Board’s resolutions.

On the EB meetings each member has an obligation to express their opinion, on the basis of which final decision is made by the Chairman-CEO. In case of a difference of opinion between the Chairman-CEO, GCEO or GCFO, the decision shall be made by the Board of Directors.

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The Executive Board (EB) members are:

Zsolt Hernádi Chairman-CEO (C-CEO)

József Molnár Group Chief Executive Officer (GCEO)Zoltán Áldott President of the Management Board, INA d.d.Ferenc Horváth Executive Vice President, Refining and MarketingJózsef Simola Group Chief Financial OfficerOszkár Világi * Chairman and Chief Executive Officer, Slovnaft a.s.Sándor Fasimon ** Executive Vice President, Exploration and Production

* From 1st April, 2010.

** From 1st June, 2011.

In 2010, the Executive Board held 46 meetings and discussed 11 issues on a meeting on average.

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Incentives provided for Board of Directors

To ensure uniformity and transparency, in addition to fixed remuneration, MOL operates an incentive scheme for directors, which supports commitment of the participants and by taking the Company’s profitability into consideration can ensure that the interests of the participants in the compensation program can coincide with those of the shareholders.The basis of the effective incentive scheme for directors was approved by the Annual General Meeting (AGM) on 23rd April 2008.

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Elements of the incentive scheme:

Profit sharing incentive system (based on value added methodology):

From January 2009, the incentive system changed from convertible bond program to a value added, profit sharing incentive system. The annual incentive of the Board Members will be determined according to an economic value added methodology. The Economic Value Added will recognize performance as a result on top of the cost of capital invested.The incentive will consist of two parts: an absolute part (recognizing the performance only of the given year) and an incremental part (recognizing the performance of the given year compared to the average of the previous years).The profit sharing based incentive system supports the commitment of the participants, thus the methodology will reward the Board Members for increasing shareholder value on long-term and

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as a sustainable improvement.The new incentive system applies to non-executive and executive Board members as well.

Fixed remuneration

In addition to the Profit sharing incentive as of 1st January 2009, directors are provided with the following fixed net remuneration, following each AGM:

Directors 25,000 EUR/year Chairmen of the Committes* 31,250 EUR/year

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Other benefits

Directors who are not Hungarian citizens and do not have a permanent address in Hungary are provided with gross 1,500 EUR for each Board meeting (maximum 15 times) they travel to Hungary for

Incentive system for the top management

The incentive system for the top management in 2009 included the following elements:

1. Incentive (bonus)

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The maximum bonus amount is 40-100% of the annual base salary, paid in cash on the basis of the evaluation following the AGM. The elements of the incentive system include:

a) Corporate and division level key financial and non financial indicators (e.g. ROACE, operating cash-flow, lost time injury frequency, CAPEX efficiency, unit production, processing, operating, logistics costs, etc.).

b) Particular individual targets related to the responsibilities of the particular manager in the given year.

2. Relative performance incentive

The basis of the relative incentive is 10% of the annual base wage, and is determined on the basis of rank of manager-specific performance ratings.

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3. Complex long term managerial incentive system

The complex long term managerial system which changes and supplements the previous, solely stock option based system, has been implemented uniformly in the Company (Group) as of 1st January 2010.

Purpose of the new incentive system is the implementation of a new and outstanding, long-term incentive system for top managers which corresponds to the incentive system of the members of the Board of Directors and keeps management’s long term interest in the increase of the MOL stock price.

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Two incentives employed parallel in the new system:

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50% Incentive based on option + 50% Profit-sharing incentive

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Main characteristics of the two incentives

a) Incentive stock option

Purpose of the incentive: to create the long-term interest of MOL Group management in the increase of MOL stock price. The incentive stock option is a material incentive disbursed in cash, calculated based on call options concerning MOL shares; it is determined as a gross benefit. Cycle time: 5 year periods (2 year long waiting period and 3 year long redemption period) starting annually.

b) Profit sharing incentive

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The Profit-sharing incentive incites the long-term, sustainable increase of profitability, based on the value added methodology, thus ensuring that the interest of the participants of the incentive system corresponds with that of shareholders of MOL Plc . The Profit-sharing incentive is a cash-paid annual net bonus calculated on the basis of the increase of the value added. (Value added: recognises a profit performance generated on top of the cost of capital invested).

Since the base of the determination of one unit of the profit-sharing incentive for the given year is the audited financial statement for the given year approved by the AGM (MOL Plc.), the incentive should be disbursed following the AGM (MOL Plc.) summoned to close the given year .

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Other Fringe Benefits

These include company cars (also used for private purposes), life insurance, accident insurance, travel insurance, liability insurance, and an annual medical check up.

Supervisory Board

The Supervisory Board is responsible for monitoring and supervising the Board of Directors on behalf of the shareholders. In accordance with MOL’s Articles of Association, the maximum number of members is nine (present membership is nine). In accordance with Company Law, 1/3 of

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the members shall be representatives of the employees, accordingly three members of the MOL Supervisory Board are employee representatives with the other six external persons appointed by the shareholders.

The members of the Supervisory Board and their independence status:

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György Mosonyi, Chairman * non-independent

Dr. Attila Chikán, Deputy Chairman independentJohn I. Charody independentSlavomír Hatina independentAttila Juhász non-independent (employee representative)József Kohán non-independent (employee representative)Sándor Lámfalussy Prof independentDr. Sándor Puskás non-independent (employee representative)István Töröcskei ** independent

* Before György Mosonyi, until 30 April 2011 Dr. Mihály Kupa was the member of the Supervisory Board.

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** Before István Töröcskei, until 29 April 2010 István Vásárhelyi was the member of the Supervisory Board.

The chairman of the Supervisory Board will be the permanent invitee to the meetings of the Board of Directors and the Finance and Risk Management Committee.

Regular agenda points of the Supervisory Board include the quarterly report of the Board of Directors on company’s operations and the reports of Internal Audit and Corporate Security. In addition, the Supervisory Board reviews the proposals for the Annual General Meeting. The Supervisory Board reviews its annual activity during the year.

In 2010 the Supervisory Board held 5 meetings with an 83% attendance rate.

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Remuneration of the members of the Supervisory Board

The General Meeting held on April 27, 2005 approved a new remuneration scheme for the Supervisory Board. Under the new scheme, the members of the Supervisory Board receive remuneration of EUR 3,000/month, while the Chairman of the Supervisory Board receives remuneration of EUR 4,000/month. In addition to this monthly fee, the Chairman of the Supervisory Board is entitled to receive EUR 1,500 for participation in each Board of Directors or Board Committee meeting, up to 15 times per annum.

Audit Committee

In 2006, the general meeting appointed the Audit Committee comprised of independent members of the Supervisory Board. The Audit Committee strengthens the independent control over the

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financial and accounting policy of the Company. The independent Audit Committee’s responsibilities include the following activities among others:

providing opinion on the report as prescribed by the Accounting Act proposal for the auditor and its remuneration, preparation of the agreement with the auditor, monitoring the compliance of the conflict of interest rules and professional requirements

applicable to the auditor, co-operation with the auditor, and proposal to the Board of Directors or to the Supervisory Board on measures to be taken, if necessary,

evaluation of the operation of the financial reporting system, proposal on necessary measures to be taken, and

providing assistance to the operation of the Supervisory Board for the sake of supervision of the financial reporting system.

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Members of the Audit Committee and dates of appointment (professional backgrounds of members are available on company homepage):

Dr. Attila Chikán, Chairman, 27 April, 2006 John I. Charody, 27 April, 2006 István Töröcskei* 1 May, 2011

and in case of long-term incapacitation of any of the permanent members, Sándor Lámfalussy Prof.

* Before István Töröcskei Dr. Mihály Kupa was the member of the Audit Comittee

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Report of the Audit Committee on its 2010 activities

In 2010, the Audit Committee held 5 meetings with an 87% average attendance rate. In addition to the regular items on the agenda, including the audit of all public financial reports, providing assistance with the auditor’s work and the regular monitoring of Internal Audit, the Committee reviewed the major risk factors of the Company, considering the changed international financial position and the status reports on risk management actions attached to these factors. The Committee continuously monitored the Company’s financial position in particular with regard to the impacts caused by the crisis. The Committee reviewed the materials of the Annual General Meeting (i.e. financial reports, statements of the Auditor).

External auditors

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The MOL Group was audited by Ernst & Young in both 2010 and 2009, excluding INA Group and Energopetrol (audited by Deloitte in both years) and the operating company of the Fedorovsky Block and (audited by PricewaterhouseCoopers, in both years). Within the framework of the audit contract, Ernst & Young performs an audit of statutory financial statements, including interim financial statements of MOL Plc. prepared in accordance with Law C of 2000 on Accounting and the consolidated annual financial statements prepared in accordance with International Financial Reporting Standards (IFRS, formerly IAS). Audits of the above mentioned financial statements are carried out in accordance with the Hungarian National Standards on Auditing, the International Standards on Auditing (ISA), the provisions of Accounting Law and other relevant regulations. The auditors ensure the continuity of the audit by scheduling regular on-site reviews during the year, participating in the meetings of MOL’s governing bodies and through other forms of consultation. The auditors also review the stock exchange reports issued quarterly; however they do not perform an audit of or issue any opinion on such reports.

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Ernst & Young also provided other services to MOL Plc. Summary of the fees paid to the auditors in 2010 and 2009 are as follows (HUF mn):

2010 2009

Audit fee for MOL plc (including audit fee for interim financial statements)

156 156

Audit fee for subsidiaries 427 425

Other non-audit services 73 10

Tax advisory services 90 40

Total 746 631

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Other non-audit services in 2010 included primarily the comfort letter issued with respect to the issuance of MOL’s EUR 750M bond and various due diligence and valuation services. The Board of Directors does not believe that non-audit services provided by Ernst & Young compromised their independence as auditors.

Relationship with the Shareholders insider trading

The Board is aware of its commitment to represent and promote shareholders’ interests, and recognises that it is fully accountable for the performance and activities of the MOL Group. To help ensure that the Company can meet shareholders’ expectations in all areas, the Board continually analyses and evaluates developments, both in the broader external environment as well as at an operational level.

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Formal channels of communication with shareholders include the Annual Report and Accounts and the quarterly results reports, as well as other public announcements made through the Budapest Stock Exchange (primary exchange) and the Warsaw Stock Exchange. Regular and extraordinary announcements are published on PSZÁF (Hungarian Financial Supervisory Authority) publication site and on MOL’s homepage.

In 2010 MOL participated in 8 roadshows and investor conferences (3 US and 5 European) having over 220 meetings with potential and existing shareholders. A 2 day Investor and Analyst day was organised in Croatia (Pula), where our key financial investors and analysts participated. 8 top managers hold presentations on MOL Group’s growth opportunities focusing on the key projects of upstream and downstream divisions. An offshore platform visit to an exploration and a production platform were organised for the participants as well. In 2010, MOL issued EUR 750 million fixed rate note and participated on a European roadshow afterwards.

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MOL Group is committed to the fair marketing of publicly-traded securities. Insider dealing in securities is regarded as a criminal offence in most of the countries in which we carry out business. Therefore, we require not only full compliance with relevant laws, but also the avoidance of even the appearance of insider securities trading and consultancy.

MOL Group requests from its employees, in line with the laws and MOL’s insider trading regulation, that they:

Should not buy or sell shares in MOL Group or any other company while in possession of insider information.

Should not disclose insider information to anyone outside the company, without prior approval.

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Should be careful, even with other MOL Group employees, should disclose insider information to a co-worker when they have permission to do so and if it is necessary to do their job.

Should protect insider information from accidental disclosure.

Exercise of shareholders’ rights general meeting participation

Voting rights on the general meeting can be exercised based on the voting rights attached to shares held by the shareholders. Each “A” Series share entitles its holder to one vote. The actual voting power depends on how many shares are registered by the shareholders participating in the general meeting.

A condition of participation and voting at the general meeting for shareholders is that the holder of the share(s) shall be registered in the Share Register. The depositary shall be responsible for

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registering the shareholders in the Share Register pursuant to the instructions of such shareholders in line with the conditions set by the general meeting invitation.

According to Article 10.1.1 of Articles of Associations:No shareholder or shareholder group (as defined below) may exercise more than 10% of the voting rights with the exception of the organization(s) acting at the Company’s request as depository or custodian for the Company’s shares or securities representing the Company’s shares (the latter shall be exempted only insofar as the ultimate person or persons exercising the shareholder’s rights represented by the shares and securities deposited with them do not fall within the limitations specified here below).”

In accordance with the Company Act the shareholders have the right to participate, to request information and to make remarks and proposals at the General Meeting. Shareholders are entitled to vote, if they hold shares with voting rights. The shareholders having at least one per cent of the voting rights may request the Board of Directors to add an item to the agenda of the

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General Meeting, and may submit resolution proposals with respect to the points of the agenda. The conditions to participate in the general meeting are published in the invitation to the general meeting. Invitations to the general meeting are published on company homepage according to the Articles of Association. The ordinary general meeting is usually held in late April, in line with the current regulation.

The ordinary general meeting, based on the proposal of Board of Directors approved by the Supervisory Board, shall have the authority to determine profit distribution, i.e. the amount of the profit after taxation to be reinvested into the Company and the amount to be paid out as dividends. Based upon the decision of the general meeting, dividend can be paid in a noncash form as well.

The starting date for the payment of dividends shall be defined by the Board of Directors in such way as to ensure a period of at least 10 working days between the first publication date of such

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announcement and the initial date of dividend distribution. Only those shareholders are entitled to receive dividend, who are registered in the share register of the Company on the basis of shareholders identification executed on the date published by the Board of Directors in the announcement on the dividend payment. Such date relevant to the dividend payment determined by the Board of Directors may deviate from the date of the general meeting deciding on the payment of divide

LEARNING & EXPERIENCE

Internship Durstion & Rationale for Selection

Internship in MOL was my very good & life time working experience in my career. It was an opportunity for me to explore my abilities and to implement the course, which I studied specially in MBA (HR).

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I did my internship in MOL (human resource department ) for eight weeks (6-july-2011 to 5-sept-2011) and in that duration; I got the opportunity to know about the mining environment. The reason for selecting MOL for internship is that it is the sector, which provides multi-services under one umbrella & Secondly, it is a multinational company so it will help me to explore my capabilities more than a local company. My internship experience gave me a good learning experience because I had the privilege to work with such cooperative and experience staff.

Main Deparments

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MS-Administration

Community Development SOD Reservoir Engineering Drilling Exploration Tax & JV Finance/Treasury Management Support MS IT/IS Human Resources Contracts & Supply Chain Management

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Production Directorate Project & Technical Services Regulators & Joint Venture Relations SD & Health Safety & Environment

Operational Units

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Supervise the activities of Human Resources, Corporate Communication, Enterprise Relations, Strategy Development and Chief Economist

Management, supervision, control of and support to inorganic actions (M&A, strategic partnership, JVs, divestment projects), specifically in transactions with critical impacts or size regarding the Group. Definition of inorganic targets of the group-level strategy. Transactions related to the shares of MOL and major subsidiaries.

Corporate Centre

Managing the process of decision-preparation relating Corporate governance committees. Managing the activities of corporate governance, process management at the Group level.

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Corporate Affairs

Corporate Based Developement


DownStream

Downstream main activities are the management of the processes from supply raw materials, through refining and logistics to the sales (hydrocarbons) of various products produced, co-ordination of business activities along the Supply Chain. Maximising the utilisation of assets serving the strategic goals of the MOL Group.

Downstream covers the activities of:

Refining & MarketingRetailPetrochemicals andSupply Chain Management.

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Exploration & Production

The Exploration & Production Division enhances MOL Group oil and gas reserves to increase shareholder value.

Divisional activities include the exploration and acquisition of economically recoverable oil and gas assets by applying optimal field development and cost-effective recovery methods for reserves discovered and/or acquired in Hungary and abroad.

This Division actively manages the Upstream portfolios.

Finance

Finance manages MOL Group financial, accounting, information provision and corporate service activities.

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Health Safety and Environment Protection

Health, Safety and Environment Protection ensures MOL Group compliance with HSE legal requirements, and provides professional management of HSE tasks efficiently, thus supporting business activities. Sustainable Development coordinates all issues related to sustainability and CSR in accordance with best international practices.

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Internal Audit

Performing independent and objective evaluator and internal consultant role through regularly reviewing control mechanisms built into business processes, serving continuous improvement of organisatonal operation. Evaluating and developing risk management efficiency, business controls and corporate governance.

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Legal

The Legal department manages all legal cases in which the Company is involved. In addition, this organisation co-ordinates the legal cases affecting more than one member of the MOL Group and also Subsidiaries’ legal cases that have significant impact on Group operations.

Power

Management and control of the introduction of MOL Group’s Power strategy. Group-level management and control of power related activities.

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Introduction of Human Resource Department

Human resource department acts as a bridge between the organization and the employees, to uphold the guidelines and laws as well as the practices. Growth of an organization depends upon the HR department, which is responsible for hiring, downsizing, recruitment, implementation of policies, compensation, increments, promotions, salary packages.

The main purpose of the HR departments to put the right person on the right job. To achieve organizational goals MOL needs a talented HR department. Besides hiring the right people to manage and perform specific jobs, HR managers have to build up commitment and loyalty among the workforce by keeping them up to date about company plans, and laying out the implications for job security and working conditions.

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ROLE OF HR DEPARMENT

► Hiring & firing► Interface to admisnistration► Indiviuail labour contratcs► Career management► Performance mangement► Tranings► Talent programs► Health checks► Work & residence permits.

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► Intercultural tranings.► Insurance► System development► Regulsation of expatriates compensation.► Standardised labor contracts.► Solving special cares(e.g. compensation packages )► Co-ordination of certain task.

Support by HR deparment for employees

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MOL co-orporate service. OR(wage data) PWC(taxes) AIG (insurance) MOL HR adminstration Health center Intercultural trainers PWC(permits)

Functions OF HR Department

Employment (recruitment, selection and induction into the organization)

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Transfer, Promotion, Layoff (checking conformity of skills with new department in case of transfer)

Training and Development (coaching, performance appraisal, post appraisal counseling, job rotation, understudies, special broadening assignments, feedback)

Compensation Administration (designing and installing job evaluation program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market)

Health and Safety (health programs, safety programs) Discipline and Discharge (Discipline = training that mould or corrects, punishment of

wrongdoers. Training people to abide by rules of behavior and punishing those who don’t, formulating list of rules and penalties for each offence, approval for discharge)

Labor relations (wages, rates of pay, hours of work, conditions of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime)

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Benefits and Services (pensions, insurance programs, sick leave pay plans, loan funds, social programs, recreational programs)

Organization Planning (developing concept of company as a structure or system) Organization Development (increase level of trust and supportiveness among people in

the organization, enhance interpersonal skills, make communication more open and direct, directly confront problems, tap the knowledge of all who can contribute to problem solutions wherever they may in the organization)

Human Resource Planning (right number of qualified persons available at the proper times, performing jobs that are useful to the organization and which provide satisfaction for the individuals involved, goals and plans of organization, current human resource situation including skills inventory, human resource forecast including comparison of projected future demand for employees with projected supply, designing programs to implement the plans of recruitment, selection, performance appraisal, transfer, promotion, training, motivation, compensation, audit and adjustment)

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Equal Employment Opportunity (no discrimination in terms of gender, race, age, national origin, religion. Involves complaint investigation, interpretation and policy, monitoring performance)

Personnel and Behavioral Research (improving worker productivity and also increasing the quality of working life, employee attitudes and motivation, predicting success in management and organizational relationships)

Personnel Information Systems (HR planning, skills inventories, employee benefits analysis and productivity studies)

RECRUITMENT

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Getting The Right People:

The recruitment process is planned to provide MOL; with the best available talent, consistent with the needs of the business and its capacity to make full use of those recruited.

Getting The People Right

MOL has consistent policies and practices in training and developing staff and involving them as ‘partners’ in the business rather than as functionaries whose roles are restricted to obeying instructions.

Recruitment of the Staff

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It is the process of discovering the potential job candidates. Now days every organization is focusing on human resource to improve its performance. A good recruiting program should attract the qualified and not the unqualified. Meeting this dual objective will minimize the cost of processing unqualified candidates. The MOL recruiting process is as under: -

Planning The Recruitment Process:

Decisions On Vacancies:

Before deciding on the existence of a vacancy, management checks whether there is a need for the work to be carried out at all or whether it can be incorporated into an existing employee’s job. In case an external source is needed, management then checks whether it should be a permanent, full-time employee or whether it should be a contractual one.

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Consulting Other Staff Who Are Involved:

The human resource management then considers other departments in the organization that might be interested in the appointment in order to make it a joint effort. They talk to relevant supervisors and especially to the people the new person will work with. A set of expert panelists are then selected from each relevant department to interview applicants.

Working Out The Sort Of Person Required:

The human resource management then lists the duties, responsibilities, authority and relationships that the job involves. They decide what qualifications are needed, what type and

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length of experience are required, and what personal attributes are important. On this basis they then draw up an up-to-date job description and person specification and proceed to forecast how soon the person is expected to be competent, what training they are prepared to give and when the start date of the job should be.

Finding Out If He/She Exists:

The HR management then speculates whether they are likely to find the qualities, qualifications and experience that they are seeking in one person. If so, research is carried out on the kind of pay and benefits package to offer. They do this through monitoring advertisements, referring to salary surveys and networking with other employers in their area and sector. This research will also determines whether they are likely to find suitable candidates locally or whether they will

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have to look further afield. Then they contemplate whether people will want to join the organization and on how to attract them.

Planning On How To Find Them:

The HR management gives priority to its own employees even in case of a negative assessment. They first advertise the post internally, both as a courtesy to staff and because they may pass the information on to any interested friends and relations. Word of mouth is also a valuable recruitment method for them and they draw on all appropriate contacts they have.

Decision On Whether To Advertise:

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Once the HR management decides that there is a need to advertise, they pinpoint the part of the press that they need to contact. Since most of the posts are of a specialist nature, they intend on advertising in the journals of professional bodies and the trade press. Their next step is to find out how much adverts cost for varying amount of space and decide what they can afford.

Writing The Advertisement:

The HR management usuallty advertised in news papers.

All their adverts for jobs mention the following clearly but succinctly:

The duties and responsibilities of the job

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The qualification and experience required including hands-on experience, internal and external experience

What form of reply is demanded (CV or request for an application form)

Drawing Up A Short List:

Then the HR management decides on the length of the short-list. Following the advert they need help to sift through the applications.

They look out for the following when reading an application:

How well-matched is the candidate to the requirements Any unexplained employment gaps The quality of presentation

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How tailored the reply is to the particular job and MOL as an organization.

Replying To Candidates:

Those that match the job are called over to undertake an on-line evaluation test.

Interviewing Potential Candidates:

The candidates that pass the on-line evaluation test are then called for interviews. A date and a time are arranged and the candidate appears for the interview. The questions of this interview are designed especially for gauging the personality and ability of the candidate.

THE SCREENING PROCESS:

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The results are screened by a set of panelists in order to minimize chances of error in selecting the candidates. The HR management sometimes keeps a small number of candidates in reserve.

Management determines the supply of human resources as follows:

Internal supply:

This is determined through:

HR Audit:

It summarizes each employee’s skills, knowledge and abilities.

Replacement Charts:

Visual representation of who will replace whom if there is a job opening

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External Supply:

This is determined through:

Demographics Labor market

Organising the Induction Of New Recruits:

The purpose of induction is to ensure that new employees:

Are integrated into their working environment as quickly as possible Learn relevant aspects of the organization’s mission, culture, policies, procedures and

methods of working Become productive and well motivated

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Become aware of the skills and knowledge needed for the job Understand their responsibilities

Advantages:

Newcomers are integrated more quickly into the organization and become productive earlier

You show that you value the newcomer, making them feel welcome and giving them a sound impression of the organization

Recruitment costs are seem as an investment Successful induction is an essential first stage of an employee development program

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Planning The Induction And Involving And Informing Others:

The induction program is drawn up and authorized by the newcomer’s manager. The mentor, if any, is also involved in the process. Other staff that will be working with the new employee are informed of the induction program whether or not they will be involved.

The induction plan contains three stages in a thirty-day period:

The First Stage Covers The Bare Essentials And The Objectives To Be Met; The Second Stage Involves Learning By A Mix Of Approaches; The Final Stage Familiarizes The New Comer With All Departments.

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Preparing The Work Area:

The new employee’s work area is kept in tiptop shape. All relevant stationery is checked and it is seen to that the equipment is in working order.

Introducing The Recruit To The Organization And The Department:

The newcomer is informed of housekeeping arrangements and provided with the employee handbook. He/she is given copies of the necessary documentation, the organization chart and job description etc. An introduction to the department and team in which he/she will be working must also be made. Although the newcomer will be introduced to people around the organization, a detailed look at what other departments do will follow at a later stage of the induction process.

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Emphasising The Importance Of Organization Policies And Procedures:

New employees are made aware at an early stage of policies and regulations based on legislation. Other procedures based on national standards and other schemes are also introduced.

Planning A Balanced Introduction To The Work:

No matter how the training is done, a mix of explanation, observation, practice and feedback is continuously dispersed. Information overload is avoided. The new employee is straightaway given real work to do to avoid boredom and to give early opportunities for achievement.

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Clarifying Performance Standards:

The performance levels required are made clear from the outset since HR management is aware of the fact that employees cannot be expected to meet standards of which they are unaware.

Conducting Regular Reviews Of Progress:

These are made during the induction program on a periodic basis, to ensure that all the objectives and the new employee’s needs are being met. The program sometimes has to be adapted to match individual learning requirements and speeds. The usual reviews consist of informal chats but a more formal appraisal interview takes place at the end of the program, particularly when the employee is on probation. The views of the employee on the overall induction process are sought for the design of future programs.

RECRUITMENT SOURCES:

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Internal Vs. External Sources:

External recruitment is currently the trend at MOL as it is still in its infancy but once all vacancies are filled, the organization will switch over to internal sources. MOL at this moment is looking for the perfect mix of employees in order to combine the best of all worlds and expose the organization to new ideas and new ways of doing business etc. The final philosophy behind internal recruitment sources is that a sample of applicants are generated who are well known to the firm, these applicants are relatively knowledgeable about the company’s vacancies which minimizes the possibility of inflated expectations about the job and above all, it is faster to fill vacancies internally.

Direct Applicants And Referrals:

Direct applicants are people who apply for a vacancy without prompting from the organization. Referrals are people who are prompted to apply by someone within the organization.MOL uses

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both sources of recruits since they have certain advantages e.g. before applying for the vacancy, they have already collected information regarding the job and believe themselves to possess qualifications in conformity with the requirements.

Advertisements In Newspapers And Periodicals:

MOL believes that these generate less desirable recruits and at a greater expense.

COLLEGES AND UNIVERSITIES:

Fresh graduates from colleges and universities are also a welcome source to MOL.

RECRUITMENT CHANNELS:

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INTERNAL CHANNELS:

These include:

Job Posting Programs: These inform employees about openings and required qualifications and invite qualified employees to apply.

Departing Employees: In the case of MOL , a buyback occurs—that is, when the employee resigns to take another job, management tries to outbid the new job offer.

EXTERNAL CHANNELS:

SELECTION

TYPES OF SELECTION OF METHODS

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Same as external sources.

Following are common selection methods employed by HR management at MOL:

INTERVIEWS:

“A dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment”.

The HR staff :

Keep the interview structured, standardized, and focused on accomplishing a small number of goals. That is, they plan to come out of each interview with quantitative ratings on a small number of dimensions that are observable and avoid ratings of abilities that may be better measured by tests.

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Ask questions dealing with specific situations that are likely to arise on the job, and use these to determine what the person is likely to do in that situation.

One part is “experience based” questions, which require the applicant to reveal an actual experience he/she had in the past when confronting the situation.

The other part are “future oriented” questions, which require the person to state what he/she is likely to do when confronted with a certain hypothetical situation in the future.

REFERENCES AND BIOGRAPHICAL DATA:

MOL solicits information on the employee from the people who know the candidate through reference checks.

Biographical data is collected directly from the job applicant.

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COGNITIVE ABILITY TESTS:

These tests differentiate between the mental capacities of individuals. There are three dominant facets of the tests that the HR management applies:

VERBAL COMPREHENSION:

They check on the candidate’s capacity to understand and use written and spoken language

QUANTITATIVE ABILITY:

They check the speed and accuracy with which the candidate can solve arithmetic problems of all kinds.

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REASONING:

They check the candidate’s capacity to invent solutions to many adverse problems

PERSONALITY INVENTORIES:

There are five common features of personality:

Extroversion Adjustment Agreeableness Conscientiousness Inquisitiveness

TRAINING

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Training is the organized procedure by which people learn knowledge and/or skills for a definite purpose. Almost every employee hired by an organization will require some training in his or her job. Some training programs may be more extensive than others, but all require the trainer to have identified content and subject matter needed in the training and tasks to be performed on the job to ensure that the training will prepare individuals to perform the job effectively. Many firms provide new employees with copies of the descriptions and specifications for the jobs to which they have been assigned. This aids in orienting them and acquainting them with what they are expected to do.

DESIGNING EFFECTIVE TRAINING SYSTEMS:

MOL uses an “Instructional design process” (which refers to a systematic approach for developing training programs). It consists of the following:

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CONDUCTING NEEDS ASSESSMENT

There are different pressure points that suggest whether training is necessary such as performance problems, new technology, internal and external customer requests for training, job redesign, new legislation,and changes in customer preferences, new services or employees’ lack of basic skills. The assessment carried out by MOL involves:

ORGANIZATIONAL ANALYSIS:

Determining the appropriateness of training, given MOL’s business strategy, its resources available for training and support by managers and peers for training activities.

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PERSON ANALYSIS:

Determining whether performance deficiencies result from a lack of knowledge, skill, or ability or from a motivational or work design problem; identifying who needs training; and determining employees’ readiness for training.

TASK ANALYSIS:

Identifying important tasks, knowledge, skills and behaviors that need to be emphasized in training.

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CREATING A LEARNING ENVIRONMENT:

For employees to acquire knowledge and skills in the training program and apply this information to their jobs, the training program includes specific learning principles. Following are some of the principles followed by MOL:

EMPLOYEES NEED TO KNOW WHY THEY SHOULD LEARN:

MOL HR management realizes that employees learn best when they understand the purpose and expected outcome of training activities. The training objectives have three components and help employees understand why they need the training:

A statement of what the employee is expected to do (performance) A statement of the quality or level of performance that is acceptable (criterion)

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A statement of the conditions under which the trainee is expected to perform the desired outcome (conditions)

EMPLOYEES USE THEIR OWN EXPERIENCES AS A BASIS FOR LEARNING:

Since employees are more likely to learn when the training is linked to their current job experiences and tasks, hence they are provided an environment that is identical to the environment they will be working in.

EMPLOYEES NEED TO HAVE OPPORTUNITIES TO PRACTISE:

Practice involves having the employee demonstrate the knowledge, skill or behavior emphasized in the training objectives under the conditions and performance standards specified by the objective. The MOL HR management makes it a point that instruction does not exceed employees’ short-term and long-term memory capacity. If lengthy procedure or process is to be

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taught, instruction is delivered in shorter sessions, or chunks, in order not to exceed memory limits. Visual images are also used to reduce demands on memory.

There are multiple practice sessions distributed over a period of 3 months.

EMPLOYEES NEED FEEDBACK:

Employees need information about how well they are meeting the training objectives. Feedback focuses on specific behaviors and is provided as soon as possible after the trainees’ behavior in order to be effective. Also, positive trainees’ behavior is verbally praised or reinforced depending on the circumstances. Videotapes are also an integral part of the practice sessions. The trainers view the videotape with trainees, provide specific information about how behaviors need to be modified, and praise trainee behaviors that meet objectives.

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EMPLOYEES LEARN BY OBSERVING THE OTHERS:

A process called behavior-modeling training, which uses models to get trainees’ attention and to demonstrate the skills or behaviors that trainees need to learn. For the model to be effective, HR management clearly specifies the desired behaviors or skills and gives the model characteristics similar to the target audience. After observing the model, trainees are given the opportunity to reproduce the skills or behavior shown by the model in practice sessions.

EMPLOYEES NEED THE TRAINING PROGRAM TO BE PROPERLY COORDINATED AND ARRANGED:

Good co-ordination ensures that trainees are not distracted by events that could interfere with learning. Activities before the program include communicating to trainees the purpose of the program, the place at which it will be held, the name of a person to contact if they have any questions, and any preprogram work they are supposed to complete. Books, speakers, handouts

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and videotapes are prepared. All necessary arrangements to secure rooms and equipment are made. The physical arrangement of the training room complements the training technique. Trainees are informed of starting and finishing times, break times, and location of bathrooms. Distractions are kept to a minimum. When trainees are asked to evaluate the program and take tests to determine what they have learned, time is allotted for this activity at the end of the program. Following the program, any credits or recording of the names of trainees who completed the program are noted down. Handouts and other training materials are stored or returned to the consultant. At the end of the program, the manager considers how it could be improved for the following time.

ENSURING TRANSFER OF TRAINING:

For training programs to be successful, trainees are made to use training in their work. Transfer of Training—the use of knowledge, skills and behaviors learned in the training environment on

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the job—is influenced by the degree to which learning occurred in the training program, the work environment, and the extent to which trainees are prepared to deal with factors in the work environment that inhibit use of new skill, knowledge or behavior.

SELECTING TRAINING METHODS:

MOL uses the following:

PRESENTATION TECHNIQUES:

These involve traditional classroom instruction, distance learning and audiovisual techniques. They are used ideally for presenting new facts, information, different philosophies and alternative problem-solving solutions or processes. They consist of:

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Classroom Instruction:

The trainer lectures a group. In many cases the lecture is supplemented with question-and-answer periods, discussions and case studies. The instructor tries to build active participation, job-related examples, and exercises into traditional classroom instruction so that trainees will learn and use the information presented on their job.

Distance Leaning

It will be used by the Head Office and Branch offices to provide information about new services, policies or procedures as well as skills training and expert lectures. It involves two-way communication between people. It includes audio conferencing, videoconferencing and docuconferencing (this allows employees to collaborate on a shared document via computers).

Audiovisual Techniques

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This is a common method used by MOL that involves overheads, slides and video. Video is the more popular instructional method. It is being used by the organization for improving communication skills, interviewing skills and customer service skills and for illustrating how procedures should be followed. It is usually used in conjunction with lectures to show trainees’ real life experiences and examples.

HANDS ON TECHNIQUESThese include:

On the Job Training:

It is used for newly hired employees, upgrading the skills of experienced employees when new technology is introduced, cross-training employees within a department or work unit, and orienting transferred or promoted employees to their new jobs. The basic philosophy of the HR

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management of MOL is that employees learn through observing peers or managers performing the job and trying to imitae their behavior.

Simulations:

A training method that represents a real-life situation, with trainees’ decisions resulting in outcomes that mirror what would happen if the trainee were on the job. They allow trainees to see the impact of their decisions in an artificial, risk-free environment and use simulations to teach management, interpersonal as well as technical skills.

Business Games and Case Studies:

These are designed to make the trainees study and discuss among themselves (case studies), while in business games, the trainees must gather information, analyze it and make decisions. MOL believes in business games because they stimulate learning since participants are actively

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involved and they mimic the competitive nature of business. The types of decisions that participants make in games include all aspects of management practice.

Behavior Modeling:

Each training session focuses on one interpersonal skill and includes a presentation of the rationale behind the key behaviors, a videotape of a model performing the key behaviors, practice opportunities using role playing, evaluation of a model’s performance in the videotape and a planning session devoted to understanding how the key behaviors can be used on the job. In the practice sessions, trainees are provided with feedback regarding how closely their behavior matches the key behaviors demonstrated by the model. The role-playing and modeled performance are based on actual incidents in the employment setting in which the trainee needs to demonstrate success.

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GROUP BUILDING TECHNIQUES

These help trainees share ideas and experiences, build group identity, understand the dynamics of interpersonal relationships, and get to know their own strengths and weaknesses and those of their co-workers.

EVALUATING TRANING PROGRAMSMOL continuously monitors its training programs in order to:

Determine whether the program is meeting objectives, is enhancing learning and is resulting in transfer of training to the job.

Determine whether trainees believe that the content and administration of the program were satisfactory.

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LEAVE RECORD:Attendace Is Mainained By Proper System. If any one comes late 3 days a month one leave is deducted from annual leaves.

There are three Basic Types Of Leaves:

Sick Casual Annual If all these leaves are finished then without pay leaves are deducted.

*Other conditons are specified in the MOL attendane policy

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EMPLOYEE SAFETY AND HEALTH

EMPLOYEE SAFETY

Safety Awareness:

The employees are given a physical environment that is comfortable and healthy. In summer there is adequate air-conditioning and in winter there is central heating. There exists an auto fire extinguishing system. There are numerous fire exits and all the employees are made aware of the locations. Since MOL is handling cellular services and there is no potential danger in the nature of its business, hence the only thing that the HR management needs to ensure is a healthy environment.

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Employee Health

Employees who are dependent on any drug or other element, or who have emotional or physical health problems often experience difficulties on the job and create difficulties for those who work with them. The HR management takes great care in training the supervisors to handle such problems and with an organizationally sanctioned program in place to help these employees, the supervisors stick to their area of expertise (i.e. monitoring employee performance) and refer any employee whose performance seems to be hindered by health problems to a staff of experts. HR management is hoping to kill two birds with one stone with these programs:

That these kinds of programs will help in preventing problems that inhibit performance, hence giving a substantial payoff in productivity.

This will also create goodwill among the employees that will translate into increased job satisfaction and higher retention rates.

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These programs are remedial in nature. They attempt to ameliorate problems encountered by workers who are drug dependent or psychologically troubled.

These programs are preventive in nature and attempt to promote good health among employees who are not necessarily having current health problems

Componenets Of Safety & Health ProgramFollowing are the components of the safety and health programs at MOL:

Objectives and policies Top management support Organization (arrangements created are conditioned by the size of MOL and the nature

of its safety problems) Establishing Responsibility for Safety Engineering (proper engineering to remove work hazards)

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Job Safety Analysis Analysis of accidents Education and training Enforcement (of standard operating procedures and safety rules) Healthful work environment Adequate medical treatment Rehabilitation (in case of a serious disability caused to employee)

HEALTH SERVICES:

Following are included in the health services of MOL :

Adequate facilities for emergency care of work injuries and for conducting pre-employment and periodic medical examinations

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Proper first-aid treatment for injuries. Serious cases are referred to private practice physicians and hospitals

Pre-employment medical examinations Reasonable first aid to employees for non-occupational illness while on the job. Information and education services for the personal health of employees Consultation with those suffering physical or emotional maladjustment to the work

situation. Co-operation with public health authorities in regard to mass inoculations and other

measures for the prevention of communicable diseases Advice and supervision, where necessary, to maintain proper company sanitation.

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JOB RELATED FEATURES

Job AnalysisThe HR management at MOL indulges in the process of getting detailed information about jobs. This includes the identification of the tasks performed; the machine and equipment utilized; the services involved; and the training skills, knowledge, and personal traits required of the worker. It helps:

Recruitment, selection and placement Performance appraisal Training and development Job evaluation and redesign Career planning

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Human resource planning

PURPOSE:

Evaluate how environmental challenges affect individual jobs Eliminate unneeded job requirements that can cause discrimination in employment Discover job elements that help or hinder the quality of work life Plan for future human resource requirements Match job applicants and job openings Determine training needs for new and experienced employees Create plans to develop employee potential Set realistic performance standards Place employees in jobs that use their skills effectively Compensate jobholders fairly

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JOB DESIGN (FOR MOTIVATION):

MOL indulges in job design by defining the way work will be performed and the tasks that will be required in a given job. The procedure that management undertakes involves the following components:

Job Rotation Larger Units of Accomplishment (breaking the whole task into little steps) Job Enlargement (adding more and different tasks to a specialized job) Job Enrichment (adding duties and responsibilities that will provide for skill variety, task

identity, task significance, autonomy and feedback on job performance) Self Managed Work Teams

PERFORMANCE MEASURES:

EMPLOYEE TURNOVER

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Managing staff turnover & retentionMOL determines, through job analysis and design, the kind of performance it expects from its employees, and maintains regular records on each employee right from the joining date. Turnover can be classified in three ways:

Employer controlled: dismissals, redundancies and early retirements Employee led: dissatisfaction of varying kinds Employer and employee uncontrolled: long-term sickness, normal retirement, maternity

leave and death in service

The advantages of managing staff turnover are:

More effective recruitment Better staff morale

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Improved knowledge of labor market as a whole More constructive development of organization’s knowledge base

Establishing The Extent Of The Problem:

MOL management uses many measurement techniques

BENCHMARKING THE ORGANIZATION AGAINST OTHERS:

The MOL management will continuously monitor national, regional and industry figures in order to see whether its turnover rates are reasonable or not.

They also monitor general labor market trends to assess how these will affect the organization. These include demographic factors, the number of women, ethnic minorities and graduates in the workforce, and labor mobility.

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WORKING OUT WHY TURNOVER TAKES PLACE:

Although external forces may influence turnover, internal factors are usually more significant. Motivation factors include:

Working for an efficient boss Thinking for yourself Seeing the end result of work and gaining a sense of achievement Being assigned interesting and challenging work Being informed, listened to and respected Being recognized for efforts Having opportunities for development Working with good and supportive colleagues

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At the same time management also studies the hygiene factors such as pay and working conditions as well as the safety needs of employees.

ASKING THEM WHY THEY LEAVE:

MOL management conducts an exit interview with leavers and gives them a questionnaire to complete. Both are structured carefully but are not relied on as the sole source of data.

ASSESSING THE EFFECTS OF TURNOVER:

Management gauges employees’ reaction through employee attitude surveys.

IMPLEMENTING RETENTION STRATEGIES:

Management takes the following steps to:

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Ensure pay rates are competitive Offer a wider choice of benefits Review recruitment literature to ensure it gives and accurate picture of the organization

and look at the quality of induction and training offered Improve job design and introduce flexible working practices Equal opportunity policies Promote career progression opportunities Improve the quality of supervision and management

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Application of the concepts

Task Performed at HR deparment

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The Human Resources department's role is to assist the business lines and to provide conditions where the employees can achieve their ultimate potential. At MOL they hire the brightest and high potential individuals.

MOL invests heavily in employee development by structuring personalized development plans for each employee. The employees are trained in core banking skills and latest developments. They pride themselves in building and maintaining a corporate culture that is conducive to high performance, teamwork and responsive to change.

Role of the Department

Policy initiation and formulation

Advice (on personnel policy, labor agreement, needs and welfare of company and employees)

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Service (employment, training, benefits functions, recruiting, interviewing, testing job applicants, maintenance of adequate employee records etc.)

Control (monitoring performance and conformance of other departments to personnel policy, procedures and practices)

List Of Task Performed

Opened new personnel Files of all the emplyees of MOL, which contains main 6 sections i.e.

o Miscellaneous

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o Performance mangement

o Traning & Development

o Recruitment & Selection

o Pre-employment

o Termination (*form is Attacehed as apendix)

I personally put all the documents of employes in the personal files in the prespective head & further i reconfirmed by checking the completed ►checlist in the form.

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Maintaned the Personnal Files cupboard Of all the Present , Exparts, Leavers employees.

Analyzed & sorted Resumes based on various criteria for respective positions.

Maintaning all internees’personal record & joinig details.

Managed all Leave files of 2010 & placed leaves of respective employees in their head.

Maintaned the list of employees of target setting 2011.

Opened new files of Hiring of July-August 2011 employees , further pointed out the missing document.

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Handling & filing transmittals for outgoing mails.

Reorganizing & Mainting Of Filing Cabinets.

The new interns which were hired they filled their interns detail form with my help which includes;

Date of joining

Banking & taxing details

Confidentialitiy agreement

Declaration (MOL group code of ethics

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All the new files required for keeping the required documents were made by me .

e.g interviewd CV ‘s Internship folders , PEPPCA, Traget setting 2011,Leaves 2011 etc.

Day to day filing was done by me.

Certain time i made recieveing of certain documents.

I made list of all the interns their relevenat infomration in excel sheet.

I have personnally called people for intervie & made interviewof new hirngs with Mr. Ali.

I have maintaned all the CVs OF 2011 send by people.

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Maintaned files & sent all archieved files to librabry & maintane da list as well as sent one copy to adminstration for record for that purpose i made a archieved list form.

Day to day recievings of doucments especially leaves were done by me.

Made interviewof new hirngs with Mr.

SWOT ANALYSIS:

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

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Strength

The human resource philosophy at MOL focuses on multi-talent hiring, professional grooming, requisite training and merit based reward system.

MOL group upstream division has expanded its actitivties & built an impressive international portfolio in recnet years.

Different cameras are located at different locations to for the security purpose.

Professional staff, right person hired on the right place.

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MOL report forms part of the 'Profile on Demand' Service, covering over 50,000 of the world's leading companies.

MOL is providing quality services to its staff e.g Security, lunch etc.

MOL provide good and dynamic environment to their staff & employees.

Good traning facilities are availbe for each employees.

MOL Group believes in responsibly supporting the communities within which it operates across the globe by taking genuine interest in establishing partnerships that can provide benefits to local communities.

Incrased ration of renewable energy sources in MOL group refinery system.

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MOL group business & functional units have developed more than 100 projects that will bring tha compay closer to its long term goal of sustainable operations.

Weakness

Much competition is faced by MOL internationally/globally.

Security issues are faced by MOL in pakistan.

Parking area is little conjusted difficulties are face by the employees.

Cafeteria has limited space as number of office based employees are 120 &cafetria only covers across 30-40 employees at a time.

Ther is no common room for girl where they can take rest & pray.

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Library area is quite conjusted.

Opportunity

Technological improvements Movinf forward in cooperation with other members of MOL GROUP. Building a premium refinery group in central & eatern europe Improving efficinecy in all areas of refining & marketing activities. Stregthning the sustainbility approach as part of our business operations.

Threats

Law and order situation, economic situation in Pakistan is faulty that is MOL have a bigger security threats.

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The biggest threat, right now to MOL is from Government policies. The second big threat to MOL is the increasing new competitors. They can compete with

them by maintaining its standards and also by expanding. Understanding and the effective management of the human resources is the most difficult

challenge faced not only by the MOL but by all the organizations. Even though the people have been sacrificed in the new organizational developments, it is becoming clear that the true lasting competitive advantage comes through human resources and how they are managed.

Now the world is a global village so competitors may rise from anywhere in the world at anytime.

To survive in the industry and to earn profits MOL should not rely on its present sources and facilities instead of this it should establish new ways of acquiring, managing and sharing market information.

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The merit of recruitment is low as internally reference base employee are selected, ignoring young and talent people.

Recomendation:

Although the working of the MOL is really good but there is always some room for improvement. After working in MOL as an intern, based on my experience & observation regarding the

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operations and policies of MOL, I have tried to stipulate some recommendations for further improvement;

Measures should be taken to resolve internal conflicts (office politics) so that work environment remains smooth and calm.

There should be a proper coordination between the coworkers, so that the desired results could be achieved.

Flexibility should be there in the work environmentor working timing to some extent. Right people should be hiredfor the respective job.. To improve the services and to remove the problems of staff & employees by making a

spread staff & employees complaint department.. Keep the up to date information on MOL web sites. IT draw backs should be improved. Administration drawbacks should be improved by the strict control of general issues

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Instead of preferring the old employees, management should hire new and well-educated talent. This will contribute to the long-term benefits of the MOL.

Employees who perform extraordinary and achieve more than their targets should be given bonuses.

MOL should arrange some seminars to make its visions and objectives, clear to every one.

The employees in the organization should be insured job security so that there is no pressure on the employees while performing their tasks.

The fresh hiring should be made permanent so that they are secured of their future. Further the allowances and perquisites attached with the permanent jobs will also increase the motivation level of the employees.

The number of allowances and perquisites for the employees should be increased to ensure that they put their body and soul in the jobs assigned to them.

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If MOL follow these guideline it can create strong identity & achieve new ways of success and MOL can also achieve their objective vision and mission my conclusion and recommendation is based on my finding which I gather during internship period personnel observation and data which I gather both primary source and secondary source MOL has to over come their weakness and avail the opportunity to create a strong image world wide.

Conclusion :

MOL is an international company which clearly focuses on its work and provides lot of faculties and benefits to its employees. Today MOL has a powerful presence in world markets, building on

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a tradition of stimulating international trade. This company maximizes value for their customer, staff & employees, while maximizing value for their shareholders as the ultimate proof of, and condition for, success. MOL engaged the services of Access Consulting to develop a complete HRM system based on sound policies in the light of their challenges in the mining operations. It have to Access Consulting helped in the following areas; Development of Organization Structure, Development of Job Descriptions & Job Specs (Management & Technical), Development of Human Resource Management System, Development of Performance Management System, Salary Survey (Management & Technical Positions), Training needs Assessment. Thus it can be concluded that the MOL should try to fulfill the expectations of the customers to the best possible level. But competition and market instability can never be ignored and have to be taken care of. Survival of the fittest can only be achieved through innovation and technological capabilities.

References

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http://ir.mol.hu/en/financial-reports/latest-flash-report_/summary/

http://www.molpakistan.pk/en/

http://www.molpakistan.pk/en/operations_activities/

mol_pakistans_operations_in_pakistan/

http://ppepca.com/communitydevelopment/MOL_Pakistan_Oil.html

http://www.obizpakistan.com/Directory%20Files/Mol_pak.htm

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http://www.obizpakistan.com/Directory%20Files/Mol_pak.htm

http://ppepca.com/communitydevelopment/MOL_Pakistan_Oil.html

http://www.molpakistan.pk/en/operations_activities/mol_pakistans_operations_in_pakistan/

http://www.molpakistan.pk/en/operations_activities/mol_pakistans_operations_in_pakistan/

http://www.molpakistan.pk/en/

http://ir.mol.hu/en/financial-reports/latest-flash-report_/summary/


http://www.mol.hu/en/about_mol/news_media_centre/our_publications/

mol_scientific_magazine/

http://www.energia.gr/article_en.asp?art_id=20074

http://www.romania-insider.com/mol%E2%80%99s%C2%A0-sales-volumes%C2%A0in

%C2%A0romania-stagnate%C2%A0in-first-quarter/23866/

Appendix

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http://www.romania-insider.com/mol%E2%80%99s%C2%A0-sales-volumes%C2%A0in%C2%A0romania-stagnate%C2%A0in-first-quarter/23866/

http://www.romania-insider.com/mol%E2%80%99s%C2%A0-sales-volumes%C2%A0in%C2%A0romania-stagnate%C2%A0in-first-quarter/23866/

http://www.energia.gr/article_en.asp?art_id=20074

http://www.mol.hu/en/about_mol/news_media_centre/our_publications/mol_scientific_magazine/

http://www.mol.hu/en/about_mol/news_media_centre/our_publications/mol_scientific_magazine/


MOL Pakistan Oil and Gas Co. B.V.

Companies' Name & Postal Address

Name & Designation

Telephone Fax

MOL Pakistan Oil & Gas Company B.V.Plot No. 5/A, Crown Plaza, F-7 MarkazP.O. Box: 4562, Islamabad

Mr. Erno Liptak Managing Driector/Chief Executive Officer

92 (51)-111-665-725 92 (51)-2655801-10

92 (51)- 2655827

MOL strives to promote the welfare of the community. It is actively engaged in community 239


Janos feher (Managing Director/ CEO) Email: janos .feher @molpakistan.com Majdi Ahmad (Deputy Managing Director) Email: [email protected] Raja Gulfaraz Akhtar (Head Management Support) Email: gulfarz.raja @molpakistan.com Zoltan Kovacs (Drilling Manager) Email: zoltzn.kovacs @molpakistan.com Arturo Leal Correa (Drilling Manager)

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Email: aleal @molpakistan.com

Ahmad Nawaz Awam (Manager Subsurface Operations & Development) Email: ahmed.nawaz @molpakistan.com Jawad Ahmed (Manager Reservior Section) Email: jawad.ahmed @molpakistan.com Shahbaz Khan (Manager Production) Email: shahbaz @molpakistan.com Abid Hussain (Chief Production Engineer) Email: abid.hussain @molpakistan.com

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Atta Muhammad Khakwani (Chief Production Engineer) Email: atta.khakwani @molpakistan.com

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Abdul Qayom (Manager Exploration) Email: aqayyum @molpakistan.com Irshad Ahmed Khan (Chief Geologist Operations) Email: irshad.khan @molpakistan.com Khalid Iqbal (Chief Engineer Projects & Technical Services) Email: khalid.iqbal @molpakistan.com Col. Niaz Safdar (Manager Exploration) Email: niaz.safdar @molpakistan.com Zoltan Jancsurak (Chief Financial Officer) Email: [email protected]

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Ghulam Ghaus (Head Management Support) Email: [email protected]

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Mohammad Azeem (Chief JV & Taxation) Email: mohmmad.azeem @molpakistan.com Shah M. Saleem-ur-Rehman (Manager Procurement) Email: shah.saleem @molpakistan.com Ahmed Abdul Rauf (Chief Precurement & Inventory Control) Email: ahmed.rauf @molpakistan.com Afzaal Akhtar (Manager Regulatory & Joint Venture Relations) Email: afzaal.akhtar @molpakistan.com Qazi Shujaat Ali (Manager HR) Email: [email protected]

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Sami Fawad Saeed (Head SD & HSE) Email: sami.saied @molpakistan.com Ejaz H. hashmi (Chief Administration) Email: ejaz.hashmi @molpakistan.com Saadi Faraz (Head Security) Email: saadi.faraz @molpakistan.com Rizwan Ahmed Fidai (Head IT/IS) Email: rizwan.fidai @molpakistan.com

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Acknowledgement

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First of all I am really thankful to Almighty Allah who

gave me strength to write this report and complete it in

time without any hurdles. I am thankful to my parents

and to their blessings and support and allowing me to

intern where I wanted too. I would also like to thankall

my advisors at MOL(HR) who gave me the confidence


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First of all I am really thankful to Almighty Allah who

gave me strength to write this report and complete it in

time without any hurdles. I am thankful to my parents

and to their blessings and support and allowing me to

intern where I wanted too. I would also like to thankall

my advisors at MOL(HR) who gave me the confidence


251

mol report

Documents

warsaw stock

hungarian

european round

sam gold class

chief financial

chief executive

soviet joint

ordinary general