TRAINING PACKAGE#2b: Shift leader / supervisor pack (Contractors and sub-contractors)

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

A message from the CEO

„…The Life Saving Rules set out clear and simple “dos” and “don’ts” covering activities with the highest potential safety risk and apply to all employees and contractors. The best-performing companies operate within a simple framework of rules and trust their employees to do the right thing. Our Life Saving Rules will help us do the same. They are simple, sharp and do what they say – save lives.

As our workers, leaders, managers, supervisors and contractors, I’m asking you to make a personal commitment to the Life Saving Rules too, make sure everyone understands and follows them. Safety will always be our top priority and this shall be based on respecting each other and our rules. My message is a simple one - if you choose to violate the rules and do your job the unsafe way, then you choose not to work for MOL Group. We are determined to save lives.”

József MolnárMOL Group CEO

What are the Life Saving Rules?

• The Life Saving Rules are basic safety rules for high-risk works where failure to comply with the rules has the highest potential for serious injury or death. They also highlight simple actions individuals can take to protect themselves and others.

• None of the Life Saving Rules is new, they have already been valid through various legal and internal regulations.

• Most staff already comply every day.

• The aim is not to blame employees but to drive a culture of compliance. The focus is on modifying worker and supervisor behaviours in the workplace by raising awareness.

• Compliance is mandatory for everyone, MOL Group, contractor and sub-contractor employees alike.

• Failure to comply will result in disciplinary action.

What is our goal?

17 fatalities*

Prevent serious injuries

NOW GOALCompliance with the LSRwould have saved many of these lives

*Staff & contractor/sub-contractor employee fatalities 2008-2012

How were they developed?

Review & analysis of:

•MOL Group historical incident data (fatalities, serious or high potential incidents)•OGP recommended practice•Oil & gas industry practice

Criteria applied:

•Rules apply to at least 50% of fatal incidents•Rules can be clearly defined and easily understood by staff & contractors•Violation of the rules can be monitored consistently

Real incidents

!

!

Consequences of breaching the rules

All rule-breaking cases

will be investigated thoroughly.

Rule violators expose

themselves or others to a

higher risk of injury or fatality.

If the rule violator acted intentionally, the maximum appropriate disciplinary

action will be applied.

For employees of contractors or

sub-contractors, this can include removal from

site and disqualification

from future Company work.

If a supervisor sets the

conditions for rule breaking or fails to follow

through if one is broken,

appropriate disciplinary

action will apply.

What are the rules?

1. Do not smoke outside designated areas

2. Verify energy is isolated before starting work

3. Obtain and follow a permit to work

4. Use correct lifesaving PPE whenever required

5. Conduct gas tests whenever required

6. Do not carry out work in trenches without effective shoring up

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

8. Do not violate safe lifting rules

9. No alcohol or drugs before and during working

10. Comply and intervene

1. Smoke only at designated areas, do not use ignition source

As a supervisor / shift lead / foreman, I have to:•Inform personnel about designated smoking areas;•Ensure the permit to work is obtained if hot work is carried out;•Inform personnel about hazards and rules of hot work.

2. Verify energy isolation before work

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

3. Obtain and follow permit to work

A permit to work must always be obtained prior to starting the following activities and followed throughout the job*: (1) Confined space entry, (2) Hot work, (3) Critical lifting, (4) Work at height and/or over water, (5) Ground disturbance, (6) Maintenance works of particularly increased risk or conditions (e.g. simultaneous operation, work on live high voltage system/equipment, opening of vessel/equipment with hazardous content, overriding safety critical equipment/system, high pressure cleaning etc.)

As a supervisor / shift lead / foreman, I have to:•Confirm that the requirements of the permit to work are in place;•Ensure that a watchman is always present when people are in a confined space;•Confirm that gas testing is carried out as per permit to work;•Confirm that it is safe to start to work.

*: This list is to be considered as minimum, further activities may be under permit to work obligation as defined locally. Performing a work different from what the permit to work was issued for is considered as working without a permit to work.

4. Use correct lifesaving PPE whenever required

Personal Protective Equipment termed ‘life saving’ are personal fall arrest systems and personal respiratory protection equipment (except dust masks). A personal fall arrest system must be used when working outside a protective environment with a fall hazard over 2 metres.

As a supervisor / shift lead / foreman, I have to:•Make sure that the specific life saving PPE is available and personnel are trained;•Confirm that suitable anchor points are available if personal fall arrest system is to be used;•Confirm that it is safe to start work at height or in the hazardous or potentially hazardous atmosphere.

5. Conduct gas tests whenever required

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

6. Do not carry out work in trenches without appropriate shoring

As a supervisor / shift lead / foreman, I have to:•Ensure that any pits or trenches deeper than 1.2 metres are sloped or protected by shoring;•Ensure that any pits or trenches deeper than 1.2 metres are considered as confined spaces.

7. Do not remove safety signs or override / disable safety critical equipment

Examples of safety-critical equipment include isolation devices/emergency shut-down valves, lock out/tag out devices, trip systems, relief valves, fire and gas alarm systems, certain level controls, alarms, crane computers.

As a supervisor / shift lead / foreman, I have to:•Be aware and inform personnel of the safety-critical equipment in the work place;•Confirm that authorisation of overriding / disabling safety critical equipment does not put the safety of personnel, asset or the environment to risk;•Ensure necessary temporary control measures are in place when safety critical equipment is overridden / disabled.

8. Do not violate safe lifting rules

As a supervisor / shift lead / foreman, I have to:•Ensure a signaller is appointed whenever necessary (eg. blind lifting, critical lifting*);•Make sure the lifting area is secured with tapes or barriers;•Make sure the lifting path is clear;•Ensure that rigging and lifting are both performed by competent persons;•Confirm that proper rigging equipment is used;•Ensure that nobody walks under a suspended load;•Stop lifting in the event of loss of communication.

*: Some lifting activities involve increased hazards (like lifting heavy loads close to crane capacity or over critical technological areas), these are called critical lifting.

9. No alcohol or drugs before and during working

As a supervisor / shift lead / foreman, I have to:•Assign work to people who are fit to work;•Immediately remove people from the work who are under the influence of alcohol or drugs.

10. Comply and intervene

Keeping the Life Saving Rules will save lives. One who chooses not to keep the Life Saving Rules chooses not to work for MOL Group.

As a supervisor / shift lead / foreman, I have to:•Provide a safe workplace and assign safe work in line with the Life Saving Rules;•Inspect the Life Saving Rules are followed;•Intervene if somebody violates the Life Saving Rules and apply consequences.

Your responsibility

Keep your team engaged with the LSR, always recognize positive behavior.

Ensure and verify that your and your sub-contractors personnel have been trained.

Lead through personal example. Ensure and verify that the LSR are applied in a fair way.

Verify, measure and continuously improve compliance.

Know the Life Saving Rules:purpose;application;reporting;investigation;consequences.

Sharing the LSR with your team

• Discuss each rule with your team and ask them to relate the Rules to what is important in their particular work area, e.g. working at height.

• Be clear that your expectation is that everyone, including you, will follow the Rules.

• Express that involvement of your subordinates in system operation is essential.

• Talk about how you will respond in the workplace if team members break a Life Saving Rule.

• Be clear: if following a Rule means a job can’t be done, find alternative safe solution to

complete the work. Encourage them to stop the work rather than break the Life Saving Rule or

make a shortcut.

Tips for training the LSR

• Familiarize yourself with the rules.

• Try to use the slides as help rather than reading from the slide.

• Think about the type of questions your team may ask you (and the answers you’ll give), as well

as how to encourage discussion and engagement.

• Put special focus on the reporting and investigation of rule violations, this topic will always be

in the center of attention.

• Tell your team how you are ‘living’ the Rules yourself. What do YOU intend to change? How will

you behave differently?

• Explain how you intend to recognize positive behavior.

How the LSR are violated

SYSTEM or UNINTENTIONAL ERROR DELIBERATE VIOLATION

System errorViolator did not receive documented training or followed instructions, procedures that led to the violation.

Reckless contravention

The person thought it was better for them personally to do it that way, e.g. getting a longer work break, getting away earlier, etc.

Routine errorThis type of error has been made by the employee or group of employees as accepted way of doing the job.

MaliciousContravention or sabotage

The person committing the violation acted so with intentional negligence of the consequences or to cause harm.

Benign contravention

Violator thought it was better for the company to do it that way or considered the job could not be done if the procedures were followed.

Poor awareness / understanding

The violator demonstrates poor risk awareness and/or understanding of the impact his/her actions have.

Slips and lapses Actions that did not proceed as planned, e.g. something was done twice, the wrong way or a step is forgotten.

How LSR violations shall be treated

SYSTEM or UNINTENTIONAL ERROR DELIBERATE VIOLATION

System errorNo disciplinary consequences are

applied*Reckless contravention

Strictest disciplinary consequences are applied

Routine error

Progressive disciplinary consequences are applied

MaliciousContravention or sabotage

Benign contravention

Poor awareness / understanding

Slips and lapses

*: If no other causes are identified during the investigation. Inadequate instructions, procedures etc. that caused the violation must be corrected to prevent reoccurrence.

Reporting of violations

Who can do on-the-site audit?•MOL Group EHS•MOL Group Investment•MOL Group operator (site responsible)

During the audit an Inspection log is created, that is approved and signed by the representative of the audited firm.

Action Example Action executor

Immediate Expulsion until correction (suspended work)(eg. until wear the lifesaving PPE)

Auditor and site responsible operator

Longer term Ban the employee (eg. proven alcohol comsumption)

Contractor owner

Investigation of violations

*: Team nomination is necessary only in cases where consequences involve serious consequences, such as contract termination or as defined locally.

Disciplinary actions

Additional help

Visit the Life Saving Rules Contractor Information Site for:•Visuals, handouts (Posters, flyers and training booklet)•Training materials (Manager, Supervisor and Employee packages)•Frequently Asked Questions

Contact your local SD & HSE for any inquiries:[Name, phone, email]

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