MOL GROUP CONTRACTOR HSE MANAGEMENT

New Elements of Contractor Safety

BLA CSEH MOL Group HSE Director

Supplier Forum - Budapest, 14th November 2007
CONTRACTOR SAFETY

We believe that:

All HSE events can and should be

prevented
Injury prevention applies to all
personnel in the workplace
Contractor HSE is consistent with
overall corporate HSE Policy and
leads to a good business flow
MOL GROUP AIM IN CONTRACTOR SAFETY

ZERO INCIDENTS No harm on health, no property damage or loss on

MOL Group or Contractor side

CULTURAL Continuous reinforcement, change in attitudes/

CHANGE perceptions
Providing guidelines and techniques for observing and
correcting unsafe acts and conditions

STRATEGY Consistent message that safety is a priority to the

organization unsafe acts and conditions will not be
tolerated leading by examples
Management commitments overcome a safety is
not my responsibility mentality
Safety Leadership by Supervisors turn a negative
situation into a positive learning experience

LETS DO IT IN A DIFFERENT (SAFER) WAY

CONTRACTOR SAFETY vs. PROCESS SAFETY MANAGEMENT

1. Contractor Selection
Pre-qualification

2. Contract Preparation

3. Contract Award

4. Orientation & Training

5. Monitoring & Auditing

6. Post-Contract
Evaluation
THE 6-STEP MANAGING CONTRACTOR SAFETY

Contractor Selection Pre-qualification

Audit-qualify-select contractors with demonstrated
satisfactory HSE performance
Contract Preparation
Document in an Owner-Umbrella HSE plan the
HSE performance expectations, initial hazard
analysis & evaluation, site HSE regulations including
standards for execution of the work, responsibilities
of key personnel and expected behaviors
Contract Award
Communicate and test for understanding of HSE
expectations documented in the contract
Orientation & Training
Prepare contractor team for project success
including HSE regulatory compliance
Monitoring & Auditing
Assure that we are following the plan outlined in the
previous steps
Post-Contract Evaluation
Assess level of success and lessons learned.
Determine whether to use the contractor again
NEW ELEMENTS IN CONTRACTOR SAFETY
ON SITE HAZARDS More precise description of site relevant
HSE hazards in ITBs
Responsible: MOL Group

PRE-QUALIFICATION Pre-qualification system with involvement

AUDIT of external contractor only companies
who gain one of different HSE certificates
(differentiated based on complexity of
works), are allowed to work on MOL Group
sites
New MOL Group Strategic HSE goal

Responsible: MOL Group selection of

company for auditing
Responsible: Contractors to prepare
themself for auditing and take part in
certification process based on MOL Group
HSE criteria
NEW ELEMENTS IN CONTRACTOR SAFETY
RULES OF THE Establishment of the rules of the game
GAME Performance expectations
Standards for execution
Key personal responsibilities (e.g. leader
recognizable by helmet color, continual
on-site availability, etc.)
Expected behaviors (e.g. standard safety
helmets on each worker)
Management of subcontractors
responsibility of main contractor

Responsible: MOL Group for establishing

of rules
Responsible: Contractors continuous
fulfillment of rules
NEW ELEMENTS IN CONTRACTOR SAFETY (cont)
MONITORING AND
AUDITING Regular work plan review
Regular formal and informal field
audits and inspections
Recording audit findings and
corrective action plans (Safety
Logbook)
Monitoring of changing conditions
Investigation of all HSE accidents,
incidents and near misses for
learning and information sharing
Responsible: MOL Group
Responsible: Contractors

CONTRACTOR Annual Contractor Safety Award

SAFETY AWARD Recognition Award
Responsible: MOL Group
SUMMARY

Starting date: January 2008

Cultural change is evolution and revolution

changing a basic perception of reality

MOL Group and Contractors Management need

to take a strong leadership role

Not only provide safety resources, equipment

and training, but actively demonstrating the
commitment to safety

Recognize and reward positive safety related

behavior

Long term achievement is a product of day to

day efforts
WHAT IS YOUR ROLE IN CONTRACTOR SAFETY

YOU WILL ACHIEVE

THE LEVEL OF SAFETY THAT
YOU DEMONSTRATE
YOU WANT TO ACHIEVE

Any related comments, questions you

may have please address to the e-mail
address:
supplier-forum@mol.hu