Sustainability Report 2012

Stakeholders Identification, Our Stakeholder Needs Our Response Local Communities, Community welfare projects, Operations Dept. Response and mode of engagement NGOs, Community Sharing of social, environmental 4 Driver comfortable stay at ARL Organizations & financial statements, Drivers 4 Liaison with local Refineries BR & A Dept 4 Neighbors facilities like rest rooms, 4 Coordinate with third party Auditors 4 Stakeholder Needs Our Response Third party Payments to transporters, Finance Dept Independent Training Opportunities , Audit of 4 Payment to transports SHAREHOLDERS & Safe operation of refinery, Operation Dept. Auditors financial statements and HR & Admin PROVIDERS OF Value addition, 4Safe operation of Plants 4 HR consultants facilities, Financial & Technical 4 Providing financial & Administrative 4Value addition CAPITAL Transparency, Compliance to 4 Professional Trainers support support Institutional Share BR & A Dept 4 Community welfare projects code of corporate 4 Local Refineries Holders 4 Compliance to code of corporate 4 Media liaison governance & materiality 4 Media 4 Banks governance 4 Liaison with neighbor & community 4Materiality Principle compliance 4 Crude/Products 4 Financial Institutions principles, Sharing of social, 4 Liaison with HR Consultants and 4Coordination with third party Auditors 4 environmental & financial Transporters Professional Trainers Non-Banking Financial 4Routine review and audits statements, Timely C&MM Dept Institutions Finance Dept. 4 Compliance to Transport agreement 4 Insurance Companies payments of dividends & 4Transparency in dealing Mode of Engagement and payment facilities 4 Investment Companies bonus shares, Maximum 4Preparation of Quarterly & Annual Financial HSEQ Department 4 Joint Stock Companies reports Meetings with communities, Neighbors participation in refinery throughput of Refinery, 4 Safety briefing 4 Associate companies & 4Sharing of financial Statements 100% Sales of products functions, Agreements with transporters, Involvement of 4 Provide support in case of any incident related parties 4Liaison with financial institutions for communities in public hearing for new projects, joint 4 Sharing Social and Environmental Private Shareholders investment 4Timely payments of dividends & Bonus shares celebration of events, external audit, conferences and seminars performance Investors majority to shareholders Shareholders Human Resource & Admin. 4Succession planning for key managerial Mode of Engagement positions to keep operation smooth and Stakeholder Needs Our Response trouble free Board of directors and shareholder Quarterly and Annual HSEQ Department SUPPLIERS Timely Bill payments, Prompt Oil Accounting Section 4Sharing Social & Environmental performance 4 On time payment to crude suppliers meetings, Refinery management committees, i.e. Risk Crude oil response, Assets safety, with share holders 4 On time payment of Utility bills Suppliers Conducive working management & strategic committee meetings succession Company Secretary HSEQ POL, OGDCL, planning & career management committee. 4Arrangement of board & shareholder meetings Environment, Technical 4 Crude oil evaluation PPL, OPL, BP, feedback, Compliance to code 4 Assets safety MOL and MGCL of corporate governance, 4 Technical feedback and R&D Operation Dept Others: Contract agreements Stakeholder Needs Our Response WAPDA, SNGPL, 4 Crude oil receipt and technical feedback Technical Services Dept PTCL and Educational Institutions Educational visits, Internship HR & Admin 4 Technical evaluation of crude and other raw General Order materials 4 Schools, Colleges, facilitations, R&D, Trainings 4Arrange for Educational Visits, Internship Suppliers Commercial & Material Management Dept Universities programs and training 4 Liaison with General order suppliers Students 4Liaison with Educational Institutions, Teachers Teachers and Students HSEQ Department Mode of Engagement Mode of Engagement 4Safety briefing 4Sharing Technical Information Quarterly Joint testing of crude oil, direct coordination with WAPDA, SNGPL, PTCL and General order suppliers, Internship and training programs, assisting universities for 4Providing technical support visit to crude production sites as and when required, regular meetings of procurement office with general order R&D, educational visits, sharing of information 4Sharing social & Environmental performance suppliers, communication of relevant policies and procedures

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Stakeholder Needs Our Response Stakeholder Needs Our Response

Employees Reasonable Salary and benefits, Human Resource & Admin. Government Agencies Compliance to code of Oil Accounting Section 4 Regular Career Growth, Training, 4 New employees induction 4 Oil and Gas Regulatory Authority corporate governance, 4 Coordination with MP&NR for 4 4 Arranging Training Programs Compliance of Quality Contract Compliance to HR policy, Safety (OGRA) crude pricing & discounts, 4 Employees 4 Meeting with employees products & services, Legal Petroleum development levy, and Security of Employees and 4 Ministry of Petroleum & Natural Representative 4 Conducting regular employees satisfaction NEQS compliance, Tax Excise duty Resources (MP&NR) Groups like their families, Conducive and surveys deduction & deposition, 4 OGRA for IFEM, Payment to 4 Standard Quality Control CBAs friendly working environment, 4 Formal agreement with CBA after 2 year Development of policies crude suppliers 4 Authority (PSQCA) 4 Contractors Sharing of Information Administrative Assistance framework, Safety, 4 FBR for excise duty & sales tax 4 Directorate of Labor HSEQ Department Infrastructure Payroll & Employees Fund 4 Federal Board of Revenue (FBR) 4 Safe and secure working Environment Development, Workers Section 4 Securities and Exchange Finance Department Welfare, Conducive 4 FBR for monthly/annual return Commission of Pakistan (SECP) 4 Timely payment of Salaries and bonuses working Environment, of withholding, income & 4 Stock Exchanges Compliance of Govt. Rules personal tax 4 Environment Protection Agencies and regulations Mode of Engagement (EPA) Account Payable Section 4 Rescue 1122 & Other like Agencies 4 FBR for contractors, suppliers HR policy, Succession planning & career management committee, Organization Environment surveys, 4 National Highway Authority (NHA) & service providers tax deposition Meeting with Employees, Training need assessment and Trainings 4 Local & District Govt. 4 Directorate of Apprentices Corporate Affair Section 4 Employees old Age Benefit Institute 4 Stock exchanges, SECP, (EOBI) Financial institutions Stakeholder Needs Our Response 4 Oil Companies Advisory Committee Sales Section (OCAC) 4 MP&NR for product sales CUSTOMERS Response for After Oil Movement Section figures (daily) Oil Market Companies: Sale Services, 4 Ensures Timely Availability 4 MP&NR & OCAC for supply & Quality & Quantity, 4 Quantity Compliance Mode of Engagement demand of petroleum products. Import decisions, Timely Availability of 4 Response to Queries Area wise product analysis Fortnightly product allocation meeting with MP&NR at OCAC. Daily Ltd. Products, 4 Administrative Complaints Human Resource & Admin. sales figures to MP&NR, Crude pricing, PDL, Coordination with MP&NR, Chevron Pakistan Ltd. Customer Quality Control Lab. 4 Local Govt. Labor deptt, Fortnightly meeting with OGRA for Inland Freight Equalization Margins Total Parco Pvt. Ltd. 4 Directorate of Apprentices, Satisfaction, 4 Ensures Quality (IFEM) at OCAC, Directorate of Labor, NHA, Directorate of Apprentices, EOBI, NHA Others: Technical Assistance 4 End user and Customer Satisfaction EOBI, Monthly/annually coordination with FBR for income tax, HSEQ Department Pakistan Air Force 4 Technical Assistance Personal and sales tax, Monthly coordination & reporting to EPA, and Financial 4 PSQCA Quarterly coordination with PSQCA. Coordination with Rescue 1122, Defense Energy Support Center Compliance. 4 Technical Complaints 4 Rescue 1122 regular liaison with local Govt. Invitation to Govt. officials, Information Supreme Global Services Invoicing & Receivables Management 4 EPA on website, Involvement of EPA in public hearing for new projects National Highway Authority 4 Accurate Timely Billing Pakistan Oilfield Limited. 4 Coordination Kot Adu Power Company Ltd. 4 Financial Complaints Foreign buyers of petroleum Quality Council meetings (bi-annualy) products 4 Customer Feedback 4 Compliance Status Mode of Engagement 4 Analysis & Action Plan 4 Integrated Management System Audit Finding Customer Site Visits (Quarterly/As & when required), 4 Follow-ups Exchange of Information, Joint testing of Product Quality, Sales Section Quarterly Customer Feedback through Tele/E-Mails/One 4 Customer liaison & satisfaction to One Meetings, Technical and Awareness Sessions 4 Compliance of sales agreements

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