Spotlight on Pakistan

As a result of expanding its international exploration-production activities, MOL is also present in some foreign countries. Operations in different local environments always involve new challenges for the Company and this is easily demonstrated by the ever-expanding activity of MOL in Pakistan which started in 1999. We are undertaking operations in Tal, Margala and the Margala North blocks.

Environmental protection

In the course of its activities, MOL attaches great importance to the protection of the environment in Pakistan and ensures full compliance with environmental regulations, which are in some cases more stringent than the corresponding Hungarian standards. Following completion of operations in drilling and other working areas, the original status and conditions of the environment are restored and the restoration programmes required by the authorities are completed - which includes in many cases reforestation and other forms of recultivation. All projects are monitored internally by MOL Pakistan SD & HSE and we have also carried out 3rd party audits of our operations in various environmentally-sensitive areas to ensure transparency in reporting our environmental performance to regulators and stakeholders. Our main achievements in 2011 include:

  • Reducing fresh water consumption to 131,793 m3 in 2011 (compared to 192,065 m3 in 2010).
  • Treating approximately 1,700 tons of oil-based mud cuttings through bioremediation.
  • Achieving an 0.5% reduction in CO2 emissions per MMscf of Sales Gas due to the optimal utilization of flash/low pressure gas compressors deployed at all our production facilities.
  • Substantially reducing total energy consumption of electricity in various locations (by 22% and 0.2% in Islamabad and field locations respectively (compared to 2010)).
  • Drilling a monitoring well at a bioremediation site at a depth of 36 meters. No traces of groundwater contamination were observed.
  • Reducing waste generation by 0.4% and 0.6% at the Manzalai Gas Plant and the Makori Early Processing Facility, respectively.
  • Hiring the services of a qualified waste contractor at drilling sites for the environmentally-friendly collection, storage, segregation and disposal of wastes.
  • Auctioning of recyclable wastes stored at various sites and their sale to an authorized party at an aggregate price of USD 10,000.
  • Installing a drum crusher as part of the waste management plan at the Manzazlai Central Processing Facility (CPF).
  • Conducting surveys on ambient air, water & soil quality in the environs of all production sites.
  • Installing solar power systems at well sites and valve assemblies.
  • Conducting third-party independent environmental, health & safety monitoring of the Margala block (a 2D seismic survey and monthly reports were submitted to the EPA).
  • Planting about 1,500 plants/trees at CPF - including plantation of grass over an area of about 220,000 square feet.
  • Distributing about 250,000 plants to local communities in the Tal Block.

Supporting local communities

MOL Pakistan’s community involvement and social investment program is about more than merely funding projects. We believe that social investment is about listening to our communities and understanding their needs, priorities and ideas – and forming partnerships that increase prosperity and sustainability. Financial commitments to social welfare have been increased to 250,000 USD, along with production bonuses of USD 1.5M, which were paid to the three districts of Tal Block in 2011 (compared to USD 1 million which was paid in 2010 to two districts from the same block). MOL’s social welfare projects for 2011 are summarized below:

  • The MOL Pakistan Scholarship Program (for both Intermediate and Technical students) continued during 2011 and will be completed in September of 2012. 36 Intermediate and Technical Scholars from Tal Block benefit from this project.
  • Construction of an Examination Hall at the Government High School in Teri (Karak District) was completed and handed over to the relevant Department and District administration for ongoing operation and maintenance.
  • Construction of the first primary model school was undertaken in 2011 at Gurguri (Karak District), as per agreement with The Citizen Foundation (TCF) (to be completed in 2012).
  • 3 Drinking water supply schemes (DWSS); 2 in Karak, and 1 in Kohat, were completed and handed over to relevant district authorities for future operation and maintenance.
  • Work on a drinking Water Supply Scheme (Replacement Well) at Donga Makori is in progress in 2011 and will be completed in 2012.
  • 5 Free Medical Camps were held in the Karak and Kohat districts during 2011 where 3,118 patients (including 1,608 women) were treated and prescribed medicine at no cost.
  • 2 Free Eye Camps were held at Tolanj and Hoti Banda in Kohat District and 884 patients were treated and referred to the Alshifa Trust Eye Hospital in Kohat for surgical procedures.
  • A donation was made to the Sarhad Rural Support Program (SRSP), a non-profit organization, for a plantation campaign in which 250,000 saplings of various species were distributed and planted in the local Tal Block communities by locals.
  • The Lachi football tournament was sponsored in the Kohat district (Tal Block).

People’s safety

To ensure leadership commitment to SD & HSE initiatives, different levels of management/employees were held accountable in their respective areas through annual SD & HSE key performance indicators (KPIs) and involvement in the HSE programs and initiatives. A mid-year SD & HSE performance evaluation was carried out to identify areas for improvement and to streamline corrective activities for Management Committee approval. A 100% conformance level with the recommendations of accident investigations and audits/inspections reports was achieved. The key safety-related achievements for 2011 are summarized below:

  • Zero lost time injury (LTI) for MOL staff and a Zero Road Accident Rate (RAR) for MOL vehicles.
  • 70% compliance with the MOL Group PSM requirements.
  • 10,556 hours of training (in-house / external consultants) were conducted.
  • 962 HSE audits / inspections, 1,148 risk assessments and 334 emergency response drills were conducted.
  • 100% conformance with the recommendations of accident investigation reports and audits / Inspections reports was attained.

People’s Health

The general medical health of our workforce is managed by MOL Pakistan company medical professionals Three clinics are functional at MOL Pakistan facilities (in MGP, Makori EPF and CPF) with 24/7 availability of doctors and field medics. Health-related activities during 2011 included Vaccination Programs, Medical Tests / Check-ups, 44 Health Awareness Sessions, 12 Health Bulletins, 57 Hygiene Audits and provision of Sports Activities & Membership in a Sports Complex for employees.

Human Capital

Key achievements in 2011 include:

  • Consistent with our efforts to further develop the leadership of MOL Pakistan, the Flagship Leadership-Development Program “Great Leaders, Great Teams, Great Results” – organized through Franklin Covey – was arranged for 25 personnel who are working in key leadership positions in the company.
  • Based upon training needs analysis (TNA) findings for the year 2011, In-House Training sessions on the topic of “Personal Effectiveness” were organized for 56 employees in October 2011.
  • In the year 2011, a 70% increase was achieved in training hours per employee while a 26% increase in enrolling new employees for various training events was made, as compared to 2010.
  • Our E-Learning Program was successfully completed in May 2011 for 11 fresh graduates (hired in 2010).
  • An Employee Performance Management System (EPMS) – under new regulation – was implemented successfully.
  • An International Talent Program (ITP) was introduced & launched in 2011 by Head Office. 6 participants from MOL Pakistan were selected to participate. During the first summit, all of the participants from MOL Pakistan demonstrated a high quality of performance & professionalism which is a clear sign of the high quality of Human Resources being nurtured in MOL Pakistan. Mr. Ali Waqar from MOL Pakistan was among the winning team, comprising of two members.
  • Our Fresh Graduate Program (FGP) was completed for 11 approved positions. After comprehensive testing, a merit-based selection process was conducted in order to provide equal opportunities to all.
  • The number of internships for university students was increased from 34 (in 2010) to 43 (in 2011) to familiarize interns with the Exploration & Production industry.
  • The Petro Skills Technical Competency Development Project was launched in 2011. Based upon the competency maps developed by MOL Group, assessment of 35 selected professionals was successfully managed under the leadership of the Director of Production (a local champion), along with the collaboration of HR & relevant line managers.
  • In line with MOL’s policies and group initiatives to groom & retain the high potential talents (which includes effective succession planning), the number of employees in the CMS has increased from 46 (in 2010) to 64 (2011).

Economic Sustainability

Key achievements in 2011 include:

  • In order to strengthen relationships between all the relevant crude oil sellers (E&P companies) and Attock Refinery Limited (ARL), a working group – headed by MOL, Pakistan – was formulated to devise a jointly-agreed upon protocol for calibrating oil carrying tankers and receipts of crude oil at ARL. The task stands completed since November, 2011 and deliveries of crude oil at refinery from all the relevant fields are accordingly – and without any disputes – progressing smoothly.
  • Similarly, under another similar arrangement between relevant sellers and Sui Northern Gas Pipelines Limited, another working group (coordinated by MOL Pakistan) is exerting efforts towards developing the national gas transmission network for optimal utilization of gas discoveries that are being made in the north of the country.
  • Local contractors were successfully trained in areas such as health, safety & environment, etc. in order to enhance their competencies and enable them to provide services to MOL Pakistan as per the regulatory & Group requirements including their selection on the basis of merit & competitive bidding in line with pertinent policies of the company. About 104 contracts/purchase orders (worth USD 3,698,020) were awarded to local contractors in 2011. This creates good-will for MOL Pakistan in local communities and contributes to the smooth & uninterrupted operations of the company.
    Code of Ethics (CoE) training for staff was conducted in 2010-2011. 19 awareness sessions on CoE were also held in local communities. Our CoE was also shared with contractors and suppliers working with MOL Pakistan and duly signed copies have been kept for our records.