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Policy in the field of environment, safety and occupational health

Health, safety and environment policy implemented by the open Joint Stock Company "Oil Company LUKOIL" in the twenty-first century.

LUKOIL Group’s strategic objective consists in steady dynamic development placing it among the world’s best oil companies in terms of efficiency and competitiveness.

While being aware of its social responsibility, the Company intends to contribute to long-term economic growth, social stability, prosperity and progress, thus preserving favorable environmental conditions and ensuring the efficient utilization of natural resources in the regions of LUKOIL Group’s presence, and it expects society to realize the complexity and magnitude of the tasks faced by the Company.

LUKOIL Group’s social responsibility implies creation of decent work conditions and pay, environmental safety and preservation of cultural heritage.

LUKOIL sets the following priorities: safe work conditions for its employees, health protection of the LUKOIL Group employees and of the local population in the regions of its presence, and environmental protection based on application of the best available technologies.

To accomplish those goals, the Company has established an efficiently functioning HSE Management System that provides for compliance with the fire safety requirements and also for emergency prevention and response. It is developed in line with the Russian legislation and also with the national laws of the countries of LUKOIL Group’s presence, based on the best practices and certified for compliance with the ISO 14001 and OHSAS 18001 standards.

The HSE policy of OAO LUKOIL in the 21st Century (hereinafter the Policy) sets the following goals:

  • higher utilization ratio of associated petroleum gas;

  • application of the “zero discharge” principle for offshore field development;

  • increased output of eco-friendly fuels compliant with European standards;

  • efficient control of greenhouse gas emissions;

  • efficient utilization of natural resources, both those involved in the production process and others occurring naturally in the regions of LUKOIL Group’s presence, through introduction of resource-saving and energy efficient technologies and use of alternative energy sources;

  • consistent mitigation of negative environmental impact through the introduction of the best available technologies, equipment, materials and improved automation of engineering process management;

  • an improved HSE component, also due to the increased reliability of process equipment, including pipeline integrity, its safe and uninterrupted operation, introduction of new technologies and automated accident-prevention systems;

  • preparedness of the administration of LUKOIL Group organizations, employees, emergency rescue services and teams for possible accident, fire and emergency-response measures, and also higher preparedness and better equipment of firefighting and emergency rescue teams;

  • improved development and implementation process of OAO LUKOIL programs aimed at continuous tracing and tackling of tasks in the area of industrial, fire, environmental and occupational safety, as well as emergency prevention;

  • mitigated man-caused environmental impact due to newly commissioned facilities through improved quality of pre-design and project documentation;

  • improved efficiency of the production control, corporate supervision and internal audit in terms of compliance with the legislative HSE requirements at the facilities of LUKOIL Group Organizations based on the introduction of cutting-edge information technologies, methods of engineering diagnostics and remote monitoring in line with the international standards ISO 14001, ISO 17020, OHSAS 18001.

To achieve the set goals, OAO LUKOIL assumes the following obligations:

  • implement the whole range of available and viable measures to prevent injuries, occupational illnesses and accidents among employees, and to mitigate their consequences;

  • regard planned and implemented measures aimed to prevent negative impact upon the employees, the local population and environment as having a higher priority over those aimed, rather, to mitigate the related consequences;

  • ensure consistent and continuous improvement of properties and characteristics of the impact produced by planned and implemented activities, products and services upon employees, the local population and environment, and also of the impact produced by consumption of natural resources, in keeping with the current advances in science, technology and society;

  • continuously and regularly implement measures to reduce losses of oil, gas, petroleum and gas derivatives, and prevent their release into the environment;

  • introduce the results of advanced scientific research and innovative technologies to gradually reduce the specific consumption of natural resources, materials and energy, while maintaining the maximum possible output;

  • ensure compliance with Russian law, international agreements and branch-specific and corporate regulatory requirements, as well as the national laws of the countries of LUKOIL Group’s presence regulating the observance of industrial, fire and environmental safety, occupational safety, prevention and preparedness for emergency response;

  • assess the impact produced by planned and implemented business activities, products and services upon the health of employees, local population and upon the environment at early stages of the planned activities;

  • assess production, professional, environmental and fire risks at all stages of a facility’s life cycle;

  • make and implement all managerial and production-related decisions while taking into account significant environmental aspects, production, professional risks, environmental and fire risks aimed at their mitigation or prevention;

  • seek to avoid operations in the habitats of valuable and specially protected plants and animals, in especially sensitive environmental zones, in plant-vegetation seasons, during breeding and migration periods of wild animals, or minimize the impact when it is impossible to cancel the operations within certain territories during certain periods; seek to prevent creation of permanent and insurmountable obstacles for migration of wild animals in the form of linear structures; take all possible measures to either prevent or mitigate the impact produced by LUKOIL Group employees upon wildlife and exercise control over their implementation;

  • hold all employees of LUKOIL Group responsible for the conduct of their activities in compliance with the applicable rules and standards in the area of industrial, fire and environmental safety, occupational safety, prevention and preparedness for emergency response. Implement respective compensation, training and advanced training measures as related to the employees of the Company and LUKOIL Group organizations;

  • ensure that all the organizations conducting activities in the territory and/or on behalf of LUKOIL Group organizations, at all stages of a facility life cycle, conduct their work in compliance with the requirements in the area of industrial, fire and environmental safety, occupational safety, prevention and preparedness for emergency response applicable in LUKOIL Group organizations;

  • publicly inform the Company’s shareholders and employees of its activities in the area of industrial, fire and environmental safety, occupational safety, prevention and preparedness for emergency response;

  • regularly interact with all parties interested in the Company’s activities (general public, including the representatives of indigenous minorities residing in the areas of LUKOIL Group’s presence, the legislative and executive authorities, research organizations, etc.) on issues ensuring industrial, fire and environmental safety, occupational safety, prevention and preparedness for emergency response;

  • ensure continuous improvement of the HSE Management System in compliance with the requirements of the ISO 14001 and OHSAS 18001 standards;

  • ensure control over fulfillment of the obligations assumed as part of the Policy.

This Policy shall cover OAO LUKOIL and the organizations of LUKOIL Group.

Approved by the Resolution of OAO LUKOIL Management Committee (Minutes No. 11 of 18 May, 2015)

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