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Khanty-Mansi Autonomous Region — Yugra

The Khanty-Mansi Autonomous Area (KhMAA) — Yugra is one of Russia's richest regions in terms of mineral resources. It is in this region that PJSC LUKOIL was originally established. The name of the Company consists of the initial letters of the names of the three cities: Langepas, Urai and Kogalym.

The KhMAA — Yugra is the land of strong, persevering trailblazers. The history of the West-Siberian oil-and-gas province began 50 years ago, when the Shaimskoye field was discovered. These five decades encompassed monumental events. A powerful oil and gas complex was built, along with new Northern cities that later became true gems of Siberia and Russia. Today, this territory is still considered a pioneering frontier — it has become a launching pad for projects of nationwide scale and an example of dynamic development for other regions of the country.

LUKOIL has intensively exploited the subsoil of the region ramping the production of oil, replenishing hydrocarbon resources, using cutting-edge innovative methods and technologies and, most importantly, prioritizing environmental aspects. The company has always focused on the conservation of the environment and authentic culture of the indigenous peoples of the North.

In 2005, the Government of Yugra and LUKOIL signed their first Agreement on social and economic cooperation. On October 25, 2013, yet another Cooperation Agreement for 2014 — 2018 was signed. In accordance with the document, projects are to be implemented with special significance for the region. PJSC LUKOIL provided financial support to deal with social issues, improve infrastructure of cities and settlements, and implement educational, cultural and sports projects.

Since 2004, the Company has regularly won the Black Gold of Yugra contest in the category "For social and economic partnership in the Khanty-Mansi Autonomous Area — Yugra".

Company Presence

SubsidiaryActivities
LLC LUKOIL-West SiberiaПермКрай_иконка_Добыча-нефти-газа.jpg    Exploration, production of oil and gas
AO RITEKПермКрай_иконка_Добыча-нефти-газа.jpg    Exploration, production of oil and gas
CJSC TURSUNTПермКрай_иконка_Добыча-нефти-газа.jpg    Exploration, production of oil and gas
CJSC LUKOIL-AIKПермКрай_иконка_Добыча-нефти-газа.jpg    Exploration, production of oil and gas
LLC LUKOIL-ENERGOSETI    Power engineering
LLC LUKOIL-UralnefteproduktПермКрай_иконка_Сбыт-нефтепродуктов.jpg    Petroleum product marketing
LLC LUKOIL-AERO    Petroleum product marketing

Imilorsko - Istochniy License Area

A subsoil use license for the period of 25 years was obtained in December 2012. The rich deposits of Imilor amount to over 193 mln tons of recoverable oil reserves. The area is of strategic importance both for the company and the entire Khanty-Mansi Autonomous Area. All preparation stages are completed by now: from the preparation of the design documentation to the drilling and development of production wells. All necessary infrastructure is in place. In 2015, 51 new wells were commissioned and three wildcats were drilled at the site. By March 2016, half a million tons of oil were produced at the field.

Consistent implementation of its strategy — from the exploration, drilling and oil and gas production to the transportation of final products - as well as the use of best global practices will allow the Company to reach an important production milestone at the fields with complicated geological conditions, and start commercial development of the Imilor-Istochniy license area in 2018, which is a priority for the Company operating fields with declining hydrocarbon production rates due to the Region's depleting resources.

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In KhMAA-Yugra the Company has successfully adopted a significant number of unique technologies for the conservation of nature. Pit-free drilling and waterproofing of the well pad foundations are used at the fields located in water conservation zones and specially protected areas. A lot of work is done to reduce emissions of pollutants into the atmosphere, limit the consumption of water and prevent the discharge of pollutants into water bodies. The company pays special attention to the reliability of its equipment and pipelines.

One example of such green technologies is the development by TPE Uraineftegaz of a block located in the Kondinskiye Lakes natural park. The park is a system of lakes and swamps covering 43.9 ths. hectares. The status of a natural parkallows, in contrast to the status of a wildlife reserve or sanctuary, for a limited use of natural resources under special operational conditions which the Company follows strictly. Among such conditions are pit-free drilling, flare-free production, waterproofing of the well pad foundations. There are 19 well pads and a multiphase booster station in the park. Since 1999, park employees together with experts from the Tyumen State University have been conducting comprehensive environmental monitoring. The monitoring network includes three stations to monitor the state of the environment, including hydrological conditions of rivers and lakes, underground water and soil.

While executing the Agreement between PJSC LUKOIL and the Government of the Khanty-Mansi Autonomous Area-Yugra, a number of major social projects were implemented. The following facilities were built in the Khanty-Mansi Autonomous Area — Yugra: a Cultural Center in the settlement of Mezhdurechensky in the Kondinsky district; the Youth of Shaima cinema and circus complex; the Star of Yugra sports center; a biathlon center; a regular and Sunday schools in Urai; the Orei cultural and sports complex; a library, an Arts Center in Pokachi; a music school; a modern hospital complex; the Dolphin watersports complex and an indoor football arena in Langepas; a number of water treatment facilities; a rehabilitation center for disabled children; an infectious disease ward at the city hospital; a marriage registration hall in Kogalym.

The following programs have also been implemented: a number of housing construction projects; projects to renovate a maternity hospital; a children's outpatient clinic with a pediatric department; a amusement park in Urai; an inpatient department of a children's hospital; a city outpatient clinic in Kogalym; rural medical and obstetric stations in the Kondinsky District and a centralized clinic and diagnostic microbiology laboratory in Sovetsky.

In 2015, Kogalym City saw the implementation of the following projects: city residents received apartments in a new 16-storey residential building; Victory Park was opened after reconstruction; the city outpatient clinic was renovated; a number of sports grounds were built in several city neighborhoods; works were started to turn the Yantar cinema into a subsidiary of the Russian State Maly Theatre. As far as Langepas city goes, the Company helped build a park for the newly weds and construct the "Oil Industry Worker" water-sports center. In Pokachi, the Company financed the repair works for the city hospital's facade and the construction of a ski center. In Yurai, new biathlon center was inaugurated.

In the village of Russkinskaya (Surgut district), as part of the Agreement on cooperation, two sports zones were built in 2015: an ice-hockey rink and a site for local sports. A 200 sq.m ice-hockey arena of was equipped with LED signage, an info board and spectators' stands for 120 seats. The stands were painted in the three colors of the Russian national flag. The company installed modern lighting systems and purchased several dozen pairs of skates of various sizes. The out-of-doors sports ground got street exercise machines for adults, a children's playground and gear for local sport practices.

The Company is also cooperating with indigenous minorities. The Company has sponsored a variety of major events in various areas, the construction of socially-oriented facilities and other projects contributing to the social and economic development of the region. Every year agreements are renewed with indigenous communities living in the area of PJSC LUKOIL's operations.

LUKOIL has helped organize in Yugra a wide range of large-scale international, national and local events, campaigns and competitions.

In 2005, the first PJSC LUKOIL's Social and Cultural Projects Contest received 46 applications from Langepas, Kogalym, Yurai and Pokachi. Over the years the contest's geography has expanded and the number of projects that received the Company's has been growing stradily. In 2015, the 11th Contest received 105 applications, 24 of them were selected as winners.

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