pakistan · final analysis and constant feedback helps improve the outcome. ... and around 13% of...

PAKISTAN

Bridge to energy security and prosperity for the country

MOL Pakistan Oil and Gas Co. B.V.Branch Office, IslamabadIssue No. 07 2011. Jul - Sep

2 MOL PAKISTAN PANORÁMA

PANORÁMA PAKISTAN is a quarterly newsletter of MOL Pakistan.

Editorial Board

Patron: Ernő Lipták MD/CEO

Editor: Gulfraz Raja

Editorial Team

Shahbaz Khan

Lt. Col. Engr. Niaz Safdar

Said Kamal Khan

Contents2 MD’s Message

3 Annual Turnarounds of Production Facilities

in Tal Block

4 New Bridge at Khushal Garh

5 Fresh Graduate Program 2010–Successful

Completion

Leadership Training for MOL Pakistan

Management

6 Environment Does Matter

7 Energy Security and Security Challenges

8 Free Eye Camp at Village Tolanj, District Kohat-

TAL Block

9 MOL Organizes Free Medical Camp at Hayatabad

10 MOL Organizes Free Medical Camp (Urdu)

11 MD’s Message (Urdu)

MD’s MessageThe hard work put in by the editorial team of the newsletter is paying off. They have come a long way to produce something which is both informative and eye-catching. You will find articles on Annual Turn Around (ATA) of our three production facilities, and the beautification plans at Manzalai Central Processing Facility (CPF), Manzalai Gas Plant (MGP), and Makori Early Production Facility (MEPF). Millions of rupees have been spent so far and still more are being spent on landscaping, grassing and plantation and Energy Security and Security Challenges. In order to further develop leadership skills in MOL Pakistan employees, Heads of departments & sections of the company attended a three days workshop here in Islamabad. The training initiative was well received by the participants & the feedback we received was quite encouraging. The details of this workshop are also inside these pages. Also you would find details of Fresh Graduate Programme 2010 in which ten graduates who were hired after tough screening & selection criteria have been taken as permanent staff on MOL Pakistan board with effect from September 01, 2011. In the end I hope you will keep guiding team Panorama Pakistan as you always have.

Editorial TeamDear readers the new edition of Panorama greets you once again. As always it is an anxious moment for us. Questions like how will you like it? What will you think of our effort? keep us always on our toes. We understand that no effort is perfect in the final analysis and constant feedback helps improve the outcome. Keep encouraging us through your valuable comments and suggestions since it is because of you that we have reached this far. This edition has many interesting articles that will give you a broad view on the way we as a company are moving forward and off course various developments related to our work. Enjoy the reading.

Ernő LiptákManaging Director/CEOMOL Pakistan Oil & Gas Co. B. V.

MOL PAKISTAN PANORÁMA 3

ARTICLE

Exemplary Results in Pakistan MOL Pakistan Oil & Gas Co B.V. has gradually emerged out to be the major market player in Pakistan as the operator of TAL Block since the commencement of gas sales from Manzalai Gas Plant, on 29th January, 2005. Now, MOL Pakistan has at its disposal an inventory of three production facilities i.e. Central Processing Facility (CPF), Manzalai Gas Plant (MGP), and Makori Early Production Facility (MEPF).The given sales comprise of, respectively, 8% and around 13% of gas and oil sales of the aggregate gas and oil production of the country. Because of the above mentioned production volumes and their criticality the given three facilities need prior approval from the Chief Executive (Prime Minister) of the country for Annual Turnarounds’ schedule (ATAs); thus reposing a heavy responsibility upon the company. Consequently, a concerted focus on ATA planning and execution has become imperative. Following approach was followed during the ATAs of all the three production facilities executed from 01st till 20th July, 2011:

Customers’ needs were identified at the outset and minimum disruption in supplies was agreed upon besides carefully monitoring all the phases of ATAs

All the internal as well as external key

stakeholders were proactively consulted while preparing the ATAs plans and the same were circulated among all concerned at least two weeks prior to the commencement of the pertaining ATA. Some salient achievements of the above approach are presented below:

Satisfied and appreciative customers with increased confidence in the seller.

Out 312 hours of downtime we saved around 105 hours which accordingly caused a consequential positive impact upon the supplies of gas and condensate respectively by around 232MMSCF and 6500bbl. 4-ATAs on all the three production

facilities were completed with Zero Lost Time Injury (LTI)It merits mentioning here that the aggregate unscheduled plant downtimes have remained to be only around 91, 42 and 76 hours, respectively, for the CPF, MGP and Makori-EPF vis-à-vis aggregate sales of 267BCF of gas and 6.8 MMBBL of crude and condensate as of 01st July, 2011Though the above results are mostly attributable to effective planning and repeated in-house evaluations the pivot in this regard has always been our team of highly competent and dedicated professionals.

Annual Turnarounds of Production Facilities in TAL Block


An example to emulate and a harbinger of development of KPKWho could have thought, at the time of the construction of the existing Khushal Garh Bridge that it would perpetually be the subject of a plethora of letters, meetings and discussions, involving two E&P companies, Governor, KPK, pertaining federal ministers and other governmental entities for several years after a century of its construction? Or, who could have thought at the time of the construction of the Khushal Garh Bridge in 1905 that the given route would be serving to be the main energy artery of a country which was to yet to even emerge on the global map as a separate entity. MOL Pakistan and OGDCL are currently producing 35% of national indigenous oil and gas from Khyber Pakhtunkhwa. The same is expected to increase up to at least 50 % of national production by the coming few years. All this crude is transported to the nearest refinery vide the safest and shortest possible route i.e. via Khushal Garh. While the route being the best in

terms of length, safety and operational ease, its only bottleneck is the Khushal Garh Bridge itself. It is a double-decked bridge, constructed in 1905 being used by routine road traffic and railway trains since then. The atypical design of the bridge with 90-degree approaches is proving to be a major bottleneck with respect to the allowable size and number of vehicles, which can pass through the same. In view of its intrinsic design limitations, the bridge is fast approaching its choking capacity. The spate of oil and gas discoveries in KP since 1999 further highlighted the limitations of the existing bridge, thus necessitating the imperative requirement of a modern new bridge fulfilling the needs of the times. A realization of this strategic requirement coupled with the fact that the energy hub of the country is gradually shifting from the south to the north compelled both OGDCL and MOL to campaign for the construction of a new modern bridge on the given route to facilitate the achievement of the above strategic purpose. It was around four years of undaunted efforts that finally MOL and

ACHIEVEMENTS

OGDCL were able to convince the Government, of the utmost importance of the new bridge for Pakistan’s energy needs as well as for the development of KPK. Accordingly ultimately a tripartite agreement was signed among NHA, OGDCL and MOL on 20th October, 2010 vide which MOL and OGDCL would extend financial assistance amounting to 700M PKR(half of the cost of the bridge) to the government of Pakistan. The signing of the agreement was followed by the mobilization by the contractor to the site on 1st May, 2011. Thereafter, in a ceremony on the 30th of July 2011, eventually the ground breaking ceremony of the new bridge was carried out by the Honorable Prime Minister of Pakistan at the site of the new bridge which is targeted to be completed by early 2013. We sincerely believe that this new Khushal Garh bridge once completed would not only help with respect the effective transportation of crude but would go a long way in serving as a harbinger of economical developed for KPK and especially its southern districts.

New Bridgeat Khushal Garh


The Fresh Graduate Program - 2010 got completed this year. Ten graduates who were hired after tough screening & selection criteria have been taken as permanent staff on MOL Pakistan board with effect from September 01, 2011. During one year of trainee period, a successful Kick-off meeting was arranged in order to support establishment efforts of fresh graduates & to equip them with updated information about MOL Group/Pakistan level operations. Within Fresh Graduate Program dedicated Mentors were assigned to all FGP Trainees to support them in their professional assignments. Mentoring agreements were in place for every

Consistent with our efforts to further develop leadership of MOL Pakistan, a training initiative was taken, where existing Heads of departments & sections were taken on a three days workshop on Leadership, which was held in Islamabad Marriot Hotel, from 13-15 July, 2011.. The Flagship Leadership-Development Program titled “Great Leaders, Great Teams, Great Results, was organized by Franklin Covey, who is the global Leader in the field of developing and building organizational & personal effectiveness. They are one of the world’s largest training companies having presence in 147 countries Ms. Andleeb Abbas was the trainer, who offered an established leadership model of Stephen R. Covey, using Leadership Quotient™ (LQ) - Survey Solution. Throughout the three days training workshop, as participants’ progress through the four Imperatives of Leadership, they use the results from their LQ assessment. The results of this assessment allow participants to apply their leanings’ in real time by capturing areas of strength and opportunities for growth.

The training initiative was well received by the participants & according to feedback report, it was rated 4.6 on a scale of 5.

individual; clearly defining goals with deadlines within the training period, hence making them responsible for performance & evaluation for the same. Furthermore a comprehensive training exposure through IPIMS E-Learning Program; in collaboration with Head office, was successfully completed too. This e-learning program is an award-winning, interactive multimedia system and E&P knowledge resource that covers all areas of Upstream Petroleum Technology. This training exposure further strengthened the professional growth of the graduates.

Great Leaders, Great Teams, Great Results

Leadership Training for MOL Pakistan Management

Fresh Graduate Program 2010–Successful Completion


CSR ACTIVITIES

The rapid growth of industry brought by radical technological changes has established the sustained and economical availability of energy resources. The world now heavily depends on oil and gas and around 85million barrels of oil and 293BCF of natural gas are globally produced every day. A number of E&P companies including MOL explore and produce these natural resources. The company’s operated production assets in Pakistan comprise of three production facilities namely Manzalai Gas Plant (MGP), Makori Production Facility (MPF) and the Central Processing Facility (CPF).The substantial growth of company’s operations in quite a short period depicts company’s commitment to overcome energy crisis in Pakistan despite odds.Company makes every effort for protection of environment within its sphere of operations

The plans with respect to landscaping, grassing and plantation etc at the CPF, commissioned on 28th October, 2009, covering approximately 11,60,000 sq ft are continued at rapid pace.

Environment Does Matter

Due to water scarcity, mostly processed sewerage water is being used for this application

Plantation at Makori Production Facility has been carried out on a total area of 50,000 sq ft. Half of the area has been covered with decoration plants, rose bushes. In addition, Tulip, Sunflower and Snapdragon, Ranunculus and Peony flowers have been successfully grown at the facility.

Manzalai Gas Plant spreads on approximately 732,000 sq ft including camp area. The facility has been beautified with hundreds of trees and plants like Eucalyptus.

Three rain and seepage water wells have been bored at Gurguri within the facility. Considering the extent of the future plans optimal utilization of processed sewerage water for the purpose is also being considered. It merits mentioning here that the whole task is being executed and monitored, as a hobby, by the concerned staff themselves.Thus far an aggregate of around 4200

trees and plants have been planted and an area of 1,942,000 sq. ft. has been covered with greenery in all the three facilities. Its goes without saying that encouraging and supporting this activity serves in the best interest of the company in every respect.


ARTICLE

Energy Security and Security Challenges

Pakistan – being a land graced with rich heritage and culture has an abundance of resources and skill to help steer it onto the path of prosperity and economic independence. If used to their optimized potential, these assets can uplift the economy and provide the nation with the pedestal required to chart its development plan with success in quite a short period of time. One such indigenous resource that has the potential to enable us to mark our spot is the production of oil and gas. Being the primary component of any economy’s core operations, the availability of fuel drives the major economic policy decisions and is imperative in determining its structure. With the current shortfall of gas by around 900MMSCFD and demand of 6260MMSCFD expected for 2015 i.e. around 63% higher than the current rate of indigenous production, the issue has become a major concern. This shortfall needs to be contained as an increased reliance on energy imports could drain Pakistan’s economy and cause severe deficit in its budget. The production source of natural gas in the country stems from many fields, one of them being Maramzai which is located near Kohat and has the ability to provide a supply of around 40MMSCFD of gas alone. Over the past few years a gradual decline in the security conditions in the region has been observed and a number of bands of assailants indulging in heinous deeds ranging from kidnapping to murders appear to be active. The given situation has generated grave concerns among the E&P companies, including MOL, operating in the area. The circumstances proved to be fertile ground for the incident which occurred on the 20th of January 2011, a date which has now been etched into the hearts and minds of many especially those who have suffered the pain and loss of their loved ones. At around 1630 hours the nefarious crime occurred whereby a convoy of vehicles on its way to the camp area was ambushed by a group of saboteurs in the Maramzai region. Four FC jawans, 1 driver and a worker lost their lives whereas a third party driver and an employee of our contractor were kidnapped. In view of the given situation akin to force majeure and in order to avoid any further misfortunate happenings the well was shut-in on the same day and the entire staff was evacuated from the site. This led to an irreplaceable loss to the

national grid, till the resumption of the said supplies, of 40MMSCFD of gas, which accounts for around 1% of the aggregate national gas production and a decrease in revenue of around 0.27MMUSD/day to the Tal joint venture. The root cause of the above unfortunate event was identified to be the lack of security provisions at the required level. Thus, due to the same, fears regarding the fate of the Mamikhel well which is in close proximity to Maramzai were also raised because stoppage of supplies from this well could have caused an additional loss of 23MMSCFD; thus, leading to a huge deficit in the nation’s production capabilities. Similarly, a closure of all the currently operating fields-which seemed a plausible eventuality in the given circumstances- in the area, could temporarily deprive the nation from around 8.3% and 14% of its indigenous gas and crude production, respectively, particularly at a time when it is most required. The solution to, not only avoid the above losses but also, restore production from Maramzai at the earliest was to resolve the security concerns observed. Accordingly, a thorough survey of the area stretching over a distance of 22kms was conducted which led to the following realizations: a) Special contingent of the police posted in the area is in a shambles.b) Despite the availability of an armored vehicle (APC), the police was mostly unable to deploy it because of non-availability of fuel.c) Dire requirement existed for at a minimum of two additional police patrolling postsHence, in order to commence with the production from Maramzai, and to avoid any further loss of life or property we proactively offered below mentioned support to the government.a) Repair of the existing building structure-the temporary abode of the special contingent of police deputed for operations in the area was conducted along with installing the main gate, doors for each room and provision of running water along with required paraphernalia. b) Arrangements for the provision of power supply to the existing check post and establishment of two additional check posts are underway.c) Logistical support for ensuring continuous patrolling of security forces in the area has been provided.

d) After necessary liaison with PTCL and other communication outfits in the area, their coverage has been substantially optimized besides establishment of dedicated monitoring offices.e) Our own fleet of security vehicles, in-house security arrangements and protocols has been substantially upgraded.f) A satellite based vehicle tracking system is being setup to keep track of all of our vehicles on real-time basis g) After necessary liaison with PTCL and other communication outfits in the area, their coverage has been substantially optimized. It is rather evident from the above enumerations that we had to incur tangible costs for undertaking the above steps. However, it is only because of the same that we were able to resume production from the given field, after a relatively short interruption of 110 days, on 10th May, 2011. Secondly, these costs are trivial in comparison to the fiscal exposure to us as well as the government which the stoppage of production had resulted into. In addition, they have served to a large extent in enhancing the morale of the concerned staff too. However, it needs to be highlighted that provision of security is the primary responsibility of the government and every additional penny being spent by us in this respect contributes to unnecessary and totally avoidable increase in our operating cost. Therefore, we expect that in future the government would take a more proactive role in such matters. The above also leads us to conclude that in any such circumstances instead of letting a despondent attitude to overcome us; it is rather a ‘can do’ approach which is required to be adopted. We sincerely believe that the given example, which we have set, if implemented on a larger scale, can unleash new avenues and prospects which can prove to be a source of progress in such areas including Balochistan. Having concluded as above, this would also always need to be kept in view that real security in all such areas can only be attained if the government undertakes steps for their social and economic development and the existing stark disparities in this regard are removed.


CSR ACTIVITIES

Free Eye Camp at Village Tolanj, District Kohat- TAL Block

Our vision is one of those wonderful gifts most of us take for granted. Being aware of the importance of protecting vision one can help to avoid problems with it in the future. . People with certain eye diseases are not able to enjoy their life to the full extent and sometimes not at all. There are several reasons for people to start learning more about eye health and how to protect our sight. There are not only personal reasons but financial reasons as well because the cost of eye care affects everyone and there is no exception to the local communities in the operational area of MOL Pakistan in TAL block of Khyber Pakhtunkhwa. . During different sessions with local community of TAL Block, It was also identified that being sandy and arid terrain, local community are facing different eye related diseases and also need proper education in this regard.

Keeping in view, MOL Pakistan, as responsible citizen came up with rapid response to help its neighboring communities and started a series of free eye camps in collaboration with Alshifa Eye Trust Hospital. Two Free Eye Camps have already been held in 2010 where in about 1526 patients including women and children were benefited by getting free of cost surgical services, spectacles and medicine. Objectives of these camps is to provide tertiary level specialized medical care at door step to the poor and marginalized community of Tolanj and adjoining areas free of cost besides creating sense of awareness in local community for adopting healthy life styles regarding eye care. The 3rd scheduled Free Eye Camp in collaboration with Alshifa Trust Eye Hospital Kohat was held at Tolanj village in District Kohat on 22nd September, 2011.

A total of 620 patients were examined including 353 male and 267 female. 124 patients were recommended for operation, 265 were provided spectacles and 165 were referred to the hospital for advance examination. 6 patients were ready for operation on the spot and they were taken to the hospital in Kohat.The activity was a big success and the local community appreciated this endeavor on the part of MOL Pakistan.


MOL Organizes Free Medical Camp - Hayatabad, District KarakIn line with corporate social development policy of MOL Pakistan to provide care for the health of its neighbouring communities, a daylong Medical Camp was arranged on 18th September, 2011 at Girls Primary School, Hayatabad, Tehsil B.D Shah, Union Council Terri. Located about 25 KM from National Indus Highway, the Hayatabad and adjacent villages are one of the most vulnerable and neglected parts of District Karak. The people of these areas have no access to basic facilities such as electricity, water, paved roads, schools and health facilities. The camp covered three villages, Hayatabad, Halala and Sam Banda that have a combined population of 10,000 approximately. The outcome of the camp was extremely positive as nearly 600 patients were examined and treated for different ailments. The main objectives of the camp were to provide medical service and consultation to villagers at their doorstep besides providing them quality medicines, vitamins and antibiotics. Another important purpose of the camp was to increase awareness of basic hygiene and preventive health care. This noble activity also improved relationship between the community and public sector. One week prior to medical camp, community department of MOL Pakistan organized a publicity campaign regarding free medical camp through banners, posters and loud speakers. Moreover, brain storming sessions with Elders Committee of adjacent villages to persuade common people to contribute in camp were held. All the stationery required, such as, registration forms, banners, patient’s card, pens and doctor’s pads were arranged for well in advance. Medical outpatient started at 09:00am in the morning and continued till 3:00pm.Field doctor from MOL CPF Clinic also facilitated and monitored the whole activity. State of the art medical equipments like Blood Pressure Monitor, Thermos scan, Pen Torches, Stethoscope and Hammer neurological examination were also included to provide finest level of care.In total 600 patients received treatment from this camp. A total of 450 patients had been successfully treated with the variety of different medicines. About 100 female patients were treated for various gynecological ailments and approximately 50 patients were referred to further

investigations and management.Many favourable results were drawn from the day long activity. Awareness regarding healthy life style was created among local communities. This activity helped in winning the hearts of local people and earning well wishes for the company. Target for provision of cost free medical treatment at their doorstep was achieved with full zeal and zest.

By and large the activity had been a massive success. However to provide maximum benefits to the common people, these camp may be extended for two days so that maximum number of diseased persons can contribute. Moreover, provision of certain tests can be facilitated as for malaria, diabetes etc’ that will help a lot in timely management and treatment of certain diseases.


MESSAGES


Environment Improvement Project.MOL Pakistan-SRSP To achieve the twin objectives of environmental improvement/ afforestation and landscape enhancement,in operational area of MOL Pakistan in TAL Block and to serve it as a model for demonstration, MOL Pakistan and Sarhad Rural Support Program (SRSP) inked an MoU in Branch office of MOL at Islamabad. Manging Director/CEO MOL Pakistan and Chief Executive Officer SRSP signed the agreement in simple but graceful ceremony participated by relevant officials from both sides. Initially, plantation campaign will be organized in all the three districts of TAL Block through local community. Plantation will be made in Government institutes/facilities in local areas besides state communal and individual land as and where available in and

around the drilling and production sites of MOL Pakistan. Based on the successful implementation of the project, the project will be replicated in other parts of MOL Pakistan operational areas in Khyber Pakhtunkhwa Province. MD MOL Pakistan Mr. Erno Liptak while commenting on the occasion said,“MOL Pakistan is a socially responsible corporate entity and is committed to sustain and improve the environment and biodiversity in its operational areas and the process of sustainable improvement of socio economic conditions of the people will further be strengthened by similar projects”.

PANORAMA Pakistan awaits and appreciates your comments.

Feedback:[email protected]

MOL PakistanContact details:Plot. 5-A, Crown PlazaF-7 Markaz, Islamabad P.O. Box: 1562 Islamabad 44000Tel: + 92 51 111 665 725Fax: +92 51 2820113www.molpakistan.pk

CRS Public RelationsOfficial PR Agency of MOL Group in Pakistan24 - Nazimuddin Road, F-10/4 Islamabad - PakistanTel: ++ 92 51 2113414-5Fax:++92 51 2113416www.crspakistan.com

[email protected]

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