HSE Training For Contractors, Basic HSE Training Module

1. HSE Training For Contractors, Basic HSE Training Module Released: 05/01/2013 Prepared by MOL FF & EBK

2. General Information Overview of HSE Functions and Fields • Health:Prevention, noise, vibrations, lighting, radiations and climatic conditions • Safety:General professional and engineering safety,ergonomics, fire safety and security guarding • Environment: Air pollution control, waste management, soil and water conservation

3. General Information HSE Objectives and Tasks HSE Tasks: Laying down rules for health & safety at work, inspections, audits and trainings

4. HSE Manual Using and keeping HSE Manuals with photo (e.g. making entries on training events as well as recording employee’s basic data and qualifications), and keeping Manuals at the working site (as a precondition for the issue of a work permit and for work).

5. Field Work Manager Work manager’s identification mark (clearly visible red armband) • A work manager (with the required qualifications and competences) is to be appointed to each work group; • Functions and duties of the work manager: - directing work group activities, and - ensuring compliance with HSE regulations. • Employees in a work group are required to - work in accordance with the instructions of the work manager, and - report all abnormalities and unexpected events to the work manager. Every employee must at all times be aware of who is directing him/her as field work manager on a particular job!

6. Conditions of Entry For Contractors’ Employees • HSE trainings(basic + site specific)– they do not provide authorization for work management! • Valid occupational health medical examination • Mine safety exam (in fields related to mining, pipelines and LPG) – where required • Fire safety exam – where required • Access card – where in use by MOL • HSE Manual

7. Preconditions For Working On MOL Premises Preconditions for working on MOL premises • Valid work permit • Employer’s assignment to a particular job • Physical and mental fitness for work • Compliance with relevant rules, regulations and the conditions set out in the work permit • Presence of a field work manager The employee has the right to refuse work if the job is immediately dangerous to life or health. The employee is obliged to refuse work if performance of the employer’s instructions puts others at risk!

8. Traffic Rules • Traffic rules should be observed on all MOL Group premises! • All vehicle drivers must comply speed limits as well as entry and parking rules. • Pedestrians should always use sidewalks whenever they are available. If no sidewalks are available or designated, pedestrians must walk on the left hand edge of the roadway, facing oncoming traffic. • Bicycle riders should primarily travel on bike roads or, if no bike roads or lanes are available, they must travel on the right hand edge of the roadway. Carriage of materials by bicycle is PROHIBITED! • NO ENTRY for bikes to any plant (process) area! • Increased attention is required when traveling on bike roads where pedestrian traffic is also allowed! • Always use designated pedestrian crosswalks for crossing roads. Where no pedestrian crossing is available, the roadway should be crossed at a 90 degree angle, possibly along the shortest path. • DO NOT trespass on plant process areas! Except where: • absolutely required by on-site activities, or • specifically permitted.

9. Dangers of Traffic • Dangers: • - Non-compliance with speed limits • Slippery or uneven road and walking surfaces • Truck, car, bicycle and pedestrian traffic on roadways in common use • - Careless or inattentive driving and walking

10. HSE Offenses Involving Banishment TABOO rules • Alcohol consumption • Smoking in forbidden places • Work involving fire hazards/in confined spaces without permit • Failure to perform obligatory gas concentration measurement • Failure to wear prescribed life-saving protective equipment (fall protection, respiratory protection) Any of the violations and failures above will entail a 5-year ban from all MOL Group sites!

11. Other Prohibitions Safety rules to observe • Use of mobile phones (in potentially flammable and explosive atmospheres) • Rules on taking photos (only if permitted) • Making audio recordings (only in permitted)

12. HSE Inspections Inspection staff (Who?) Inspections are carried out by MOL personnel periodically, mostly without prior notice Requirements are based on HSE legislation in force and the requirements set out in MOL’s Contract For Professional Services Depending on severity, the following consequences may be imposed: - Withdrawal of the work permit, - Penalty imposed (payable by the contractor), - 1-yearban from all MOL sites Requirements (Based on what?) Consequences

13. HSE Inspections • Access card (where appropriate) • Work permit • Certificates of qualification exams • HSE Manual • Field work manager • Orderliness of the working site • Knowledge of the process and site-specific HSE risks • Compliance with work process-related HSE regulations • Knowledge of emergency rules Detailed inspection content (What?)

14. HSE Inspections • Availability of appropriate protective clothing and PPE (e.g. fall protection & respiratory protection) • Appropriate scaffolding • Proper condition of tools, instruments and machines used for work • Status and documents of those who temporarily stay on MOL premises • Electrical equipment and documents of their periodical reviews and inspections • Fitness for work (e.g. working under the influence of alcohol) Detailed inspection content (What?)

15. Hazardous Substances and Their Harmful Effects Presence of hazardous substances Presence of hazardous substances: • Hydrocarbon derivatives • Highly flammable and explosive substances • Toxic and/or carcinogenic substances • Auxiliary materials • Their effects depend on:material properties, concentration and the duration of exposure • Protection:risk awareness through training, protective measures and precautions (both collective and individual) and compliance with rules and regulations

16. Hazardous Substances and Their Harmful Effects Hydrocarbons Hydrocarbons emit vapors with narcotizing effect. Symptoms: dizziness, tinnitus and drowsiness. Symptoms disappear after breathing fresh air for a few minutes. If the toxic effect persists, tearing, nausea, circulatory and respiratory disturbancesmay occur, which can lead to loss of consciousness. Hydrocarbons displace oxygen from confined spaces. Benzene Highly flammable, transparent liquid with specific weight lower than water. Benzene can be absorbed into the body by inhalation of the vapors or through the skin. As a narcotic substance, benzene can cause irritation to the eyes, mucous membranes and skin, anemia associated with slow cell formation and fatal paralysis of the nervous system. Carcinogenic substance. Hydrogen Sulphide Colorless gas with rotten egg odor. Forms explosive mixtures with air. Symptoms: HS causes irritation to mucous membranes, eyes and lungs, cough and headache. Pulmonary edema is also possible. High concentrations of the substance render its odor unnoticeable by paralyzing olfactory nerves, and can cause loss of consciousness, respiratory paralysis, heart failure, and even death. Only a rescue team wearing compressed air breathing apparatuses are allowed to move the injured out of the danger area. Main types of substances, their properties and health effects

17. Hazardous Substances and Their Harmful Effects Ammonia Ammonia is used as a refrigerant (e.g. for the precipitation of paraffin from crude oil). It is a colorless, pungent, highly irritating, corrosive and flammable liquid or gasthat can form explosive mixtures with air. It is miscible in all proportions with water. Inhalation of ammonia can cause laryngeal edema, pulmonary edema, respiratory paralysis or death as well as blindness if it gets in the eyes. When ammonia gets in contact with skin, it can cause blistering and severe frostbite. Remove the injured to fresh air, put him/her in a comfortable position and loosen tight clothing. In case of respiratory paralysis, oxygen should be used for inhalation. Do not allow the victim to cool off! Do not give the injured artificial respiration! In case of poisoning, call a physician immediately.If ammonia gets in the eye, it should be rinsed thoroughly with plenty of water. Prevention: use of compressed air breathing apparatus or gas mask with filter cartridge for ammonia. Methyl Alcohol (Methanol) A colorless, highly flammable, liquid material. The liquid and its vapors can cause damage to the central nervous system, in particular the optic nerves (blindness), and can be absorbed into the body through the skin. The kidney, liver, heart and other organs can be damaged. The consequences will manifest themselves later. Inhalation of the vapor is less dangerous than ingestion of the substance. Symptoms: lethargy, abdominal cramps, dizziness, headache, nausea and vomiting, fits of weakness, visual disturbances, loss of consciousness, respiratory arrest. Main types of substances, their properties and health effects

18. Hazardous Substances and Their Harmful Effects Carbon Monoxide Very toxic gas! Carbon monoxide (CO) is a colorless, odorless and tasteless gas. It is a product of the incomplete combustion of carbon compounds. Gaseous at room temperature. Highly toxic. Carbon monoxide is a hardly condensable gas. Its density is close to that of air. Immediate effects of carbon monoxide poisoning: headache, dizziness, nausea, vision and hearing impairments. Long-term effects of carbon monoxide poisoning: coronary circulation supplying the heart muscle deteriorates, contributing to coronary atherosclerosis. It narrows the coronary arteries, increasing the risk of heart attack. Inert Gases(e.g. Nitrogen, Argon, Helium, etc.) The inert gases are odorless, colorless and tasteless.That is why they are much more dangerous than toxic gases, e.g. chlorine, ammonia or hydrogen sulphide, which are recognizable, even in low concentrations, by their characteristic smell. For an unsuspecting person, the ”choking” effect of inert gases occurs without any prior physiological sign. This effect is very rapid – a matter of seconds at very low oxygen concentrations. To put it simply: ”You don’t realize that you die!” Raw Natural Gas Odorless natural gas prior to adding distinctive odorants. So, do not expect it to emit the typical smell of sales gas distributed to consumers! Main types of substances, their properties and health effects

19. Hazardous Energies or Material States Hazardous energies & states • High pressure • Vacuum MOVIE • High/low temperature • Noise, vibration • Electrical installations • Rotary machines • Etc. - Precluding the possibility of any hazardous energy (e.g. pressure, electricity, temperature, etc.) to occur - Compliance with the instructions given for a particular work process (e.g. disassembly of equipment) - Mandatory use of protective equipment required Methods of protection

20. HSE Critical Activities List of HSE critical activities • Earthworks below a depth of 1.2 m • Work in confined spaces with entry • Activities involving fire hazards • Critical lifts • Work at height • Primary opening of hazardous equipment • Chemical cleaning/washing • Cleaning with high pressure water, abrasive blasting • Any other activity classified as hazardous by the authorizing executive

21. The Fire Triangle Oxygen Combustible material For a fire to ignite, the three key elements must be simultaneously present at a place Ignition source

22. Fire Classes Premises and hazard zones A – highly flammable and explosive B – flammable and explosive C – flammable D – moderately flammable E – non-flammable

23. Fire Alarms – Reporting Fires Premises and hazard zones For details (e.g.: telephone numbers), refer to site-specific training. All fires (including extinguished ones) must be reported to the area operator. Minimum information requirements for reporting a fire: - Where is the fire (exact location, technology unit) - What is burning, - Buildings, technologies or persons exposed to fire risk, - Personal injuries, if any, - The name and telephone number of the person reporting the fire (for callback)

24. Fire Extinguishers Types and use of fire extinguishers Types of fire extinguishers by agent: • Dry chemical • Gas • Foam • Water Rules for use Do not use water for putting out electrical fires! To extinguish bodily fires, use: fire blanket &emergency shower

25. Rules For Fighting Fires Practical firefighting skills • Taking into account wind direction • From two sides if possible • From appr. 3 meters • At a shallow angle • Spreading out in a fan shape • Right into the flame MOVIE

26. Use of Work Tools and Protective Equipment Proper condition of work tools • Before starting the work, an employee must: • visually inspect the work tool he intends to use, and • perform a no-load test operation. • A work tool is in proper condition if: • it is structurally complete, • no breaks, cracks and deformation are on it, • no significant corrosion or heat traces can be observed, and • it operates properly in terms of noise, vibration and smooth running.

27. Use of Work Tools and Protective Equipment Use of personal protective equipment Basic protection: • Full body protective clothing • Safety helmet • Safety footwear • Safety goggles Additional protection (if necessary): • Protective gloves • Fall protection (body harness, fall arrest) • Respiratory protection • Hearing protection The contractor is required to provide its staff with all personal protective equipment!

28. Use of Work Tools and Protective Equipment Means of measuring gas concentrations • Selecting the appropriate instrument: • According to vapor/gas properties to be examined • Gas concentrations must be monitored in the following cases: • Checking pipelines, flanges and gate valves for gas leak • Both work in confined spaces and work involving fire hazards require continuous gas concentration monitoring • Personal protection When a personal gas detector sounds an alarm, the work in progress should be finished as soon as possible, and the alarm immediately reported to the work manager and the authorizing executive.

29. Use of Work Tools and Protective Equipment Use of personal gas detectors • When? • How? • Who should use it?

30. Use of Work Tools and Protective Equipment Isolation transformer (passive means of shock protection) • Operation When used, it is connected between the consumer and the network. The isolation transformer is designed with two isolated windings, normally having a ratio of 1 to 1 between the primary and secondary ones. The length of the flexible supply cable of a mobile consumer with isolation transformer protection may not exceed 10 m, and must be visible to the naked eye along its entire length. • When? • How? • Who should use it?

31. Rules of Conduct For Emergencies Causes of alarms and types of emergencies Emergencies: • Release of a hazardous substance into the environment • Fire • Explosion • Intoxication • Accident • Environmental pollution • Terrorism

32. Rules of Conduct For Emergencies Emergency actions • Stop all outside activities immediately! Work permits are no longer valid! • Notify the competent ones, call the emergency number • Commence emergency response operations (if possible) • Leave the danger zone • Cooperate with the rescue teams;follow the instructions of the rescue leader • When the emergency situation is over, the area manager should re-examine whether it is possible to resume work.

33. Rules of Conduct For Emergencies Management of emergencies • At the beginning of an emergency:sounding the site-specific alarm tone • Closure of dangerous areas and road sections with light signals and inscriptions • Escape:leaving the danger zone and facility as soon as possible e.g. in case of fire • Seclusion:moving to the isolated place designated for this purpose e.g. in case of the release of hazardous gases/vapors • At the end of an emergency: sounding the site-specific alarm tone For detailed rules, refer to site-specific trainings!

34. Illuminating HSE Events (CH Presence) Event description During cleaning, an explosion and fire occurred in a 5000 m3 gasoline tank. A tank cleaner suffered fatal burns. The concentration has certainly exceeded 20 % of the lower explosion limit (LEL) concentration, in which case the entry permit for work in confined spaces should not have been issued. The contractor staff was wearing protective clothing and using technologies and electrical devices that had not previously been checked by the local staff. The electrical devices used on site were not of explosion-proof construction.

35. Illuminating HSE Events (High pressure) Event description: A ”After opening the gate valve, pressure has risen to appr. 80 bar, and then the male part of the quick connect fitting suddenly flew off along with the pressure gauge and hit a worker in the face. The condition of the injured person was stabilized on the site, and then he was taken on board of a rescue helicopter to the city hospital of Szolnok. The next day, he died as a result of his injuries.”

36. Illuminating HSE Events (Entry into a confined space, CH Presence) Event description: “Cave-inhazard (unshoredorunslopedtrench) Implosionhazard (use of personalgasdetector) Otherphysical and chemicalsources of danger (useofpersonalprotectiveequipment, e.g. safetyhelmet, safetygoggles, protectivegloves…”

37. Illuminating HSE Events (Critical Lifts) Hazards: - Fall of the load lifted, - Crane tipping - Falling parts Precautions: - Lifting Plan - Use of lifting machinery of proper load capacity - Safe installation and outrigging - Qualified crane operator and slinger - Lockout/tagout of the lifting zone

38. Illuminating HSE Events (Presence of Toxic Substances) Event description: Chemical purification of the heat exchanger in the sour water stripping system was started with tube side cleaning. After introducing hydrochloric acid to the system, the flexible hose on the return leg became loose. One of the workers went to the open container, leaned closer to it but immediately lost his consciousness. His colleague alerted plant staff working from the scene appr. 30 to 40 m by shouting, and then tried to rescue his fellow worker. He could pull away his unconscious mate by just appr. 1 m when he also collapsed. Both workers were rescued from the danger zone by plant staff, with the help of a third contractor worker. Then, plant personnel issued an alarm according to the relevant rules. By the time the ambulance arrived, both victims were conscious again and brought to hospital after giving them first aid. • Chemical cleaning/washing

39. Illuminating HSE Events (Inadequate Work Equipment) Event description: A worker did a welding job and weld repairs. The angle grinder’s plastic casing displaced during work. The thumb of the worker’s right hand probably came in physical contact with the carbon brush of the electric motor, and he suffered an electric shock. The injured person couldn’t grasp anything with his hand as it was cramped, but his workmates rushed to help him out of the shaft, using a rescue rope. The First Aid Service provided the victim with emergency treatment, including an ECG test, and then he was taken by OMSZ (National Ambulance Service of Hungary) to Szent János Hospital Budapest for further observation..

40. New Entry Training and Basic Training For Contractor Staff Thank you for your attention! I wish you to work without accidents!