Annual Report 2014

ECONOMIC, SOCIAL AND ENVIROMENTAL PERFORMANCE

Sustainability Highlights

  • Enhanced Oil Recovery project in Croatia, which will increase oil recovery and substantially reduce carbon-dioxide (CO2) emissions, has obtained its operating licenses. After finalising re-lining workover operations on both CO2 injection wells and water disposal injection units, pilot injection into 12 wells in Ivanic Grad commenced. By the end of 2014, a total of 27,045,379 m3 of CO2 had been injected, resulting in a 50 thousand ton reduction in CO2 emissions.
  • Begun in 2013, comprehensive water studies were finalised in 2014 for two operational blocks; one in Pakistan and another one in the Kurdistan Region of Iraq, both considered to be located in a water-scarce area. Bearing in mind further operational development in both areas - especially the likelihood of water-intensive drilling operations - further recommendations were made in order to ensure a sustainable supply of water and to protect water bodies throughout both blocks.
  • E&P activities often take place in or adjacent to natural, protected areas. In 2014, MOL Group conducted a comprehensive survey to better identify sites that are critical from a biodiversity perspective. The findings show that MOL Group’s general exposure is moderate, but some of the operational sites in Hungary and Croatia are located on areas with Natura2000 protection, and in Croatia three major sites are located in biodiversity-critical (protected nature conservation or water sensitive) areas. Accordingly, operational plans for 2015 include the preparation of Biodiversity Action Plans for the sites considered to be biodiversity critical. For international operations, an Action Plan covering all three of the critical sites for the period 2014-2016 has already been developed in Pakistan, and the first part of this plan has been finalised.
  • In E&P operations outside Europe, a large amount of crude oil is transported by road. In order that own staff and contractor employees to better understand and manage the risks they face with road safety, MOL Pakistan conducted a comprehensive road risk assessment for condensate/crude transportation from field operations to transferring facilities. A new HSE pre-screening and HSE pre-qualification criteria have also been introduced for contractors regarding road transportation. This should help identify contractors with the best safety performance. In the Kurdistan Region of Iraq, Kalegran B.V. has completed identifying the most material social issues, stakeholder concerns and related social impacts of its operations. The outcome of the process is a so-called Stakeholder Engagement and Social Investment Strategy. Six key areas were identified as being crucial to locals. The main areas of concern are addressed in initiatives for Water Development, Agriculture, Education, Youth Empowerment and Tourism. The assessment and pre-planning process for the proposed initiatives will be implemented in the near future and is due to be completed in 2015.
  • In 2014, MOL Group launched UPPP, a new international E&P talent acquisition program. In total, 972 teams entered the program, most of them from Pakistan, the Kurdistan Region of Iraq, the UK, Hungary and Croatia. Three Pakistani teams made their way into the top ten and some of them won monetary prizes and an opportunity to work as part of MOL Group.