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Occupational Safety

In its business LUKOIL pays great attention to personnel safety, accident and injury rate reduction, creation of decent labor conditions, while prioritizing these issues over any other organizational and technical issues.

The Company continues to demonstrate a high level of health, safety and fire safety performance in the Russian oil industry.

Despite some growth vs. 2014, the 2015 injury rates of the LUKOIL Group Entities remain quite low as compared to other Russian and foreign oil and gas businesses.

The Company has been applying its efforts to improve the working conditions for its employees. The primary tool used in the assessment of the working conditions and their management is the procedure developed to this end and formalized in the Russian law called a specialized workplace assessment (SWA) that in 2014 replaced the former workplace assessment.

As of January 1, 2016, over 95% of the workplaces in the Russian Entities of the LUKOIL Group are covered either by the SWA conducted in 2014-2015, or the valid workplace assessment system, of which the SWA accounts for more than two-thirds of the Company's workplaces.

Due to the consistent implementation of measures to improve the workplace environments, the share of the Company's employees working in harmful environments has been steadily dropping in the recent years.

  • Corporate programs
  • Summarized SWA results in terms of classes (sub-classes) of workplace environments in PJSC LUKOIL’s Central Office

While fulfilling their obligations under the PJSC LUKOIL Health, Safety, and Environmental Policy in the 21st century in order to minimize the industrial and professional risks, the LUKOIL Group Entities develop and implement the respective corporate programs.

The Company's Management Committee approved the 2011-2015 Industrial Safety, Labor Conditions Improvement and Protection, Emergency Prevention and Response Program. The funding allocated under the Program totaled 40.1 billion rubles (the 2006-2010 program costs totaled 26.3 billion rubles).

The 2015 program costs totaled 10.25 billion rubles. The actual costs of the LUKOIL Group totaled 100% of the target (10.26 billion rubles).

The program covers the following key topics:

  • provide training and advanced training to employees of the LUKOIL Group Entities;

  • bring workplaces in the LUKOIL Group Entities in line with the statutory requirements;

  • supply personnel with personal protective equipment and create proper sanitary and health promoting conditions;

  • maintain health care levels of the LUKOIL Group Entities in accordance with the public or corporate standards;

  •  improve health, safety and fire safety management; provide regulatory, legal and organizational support;

  • prevent emergencies and ensure emergency response;

  • bring the facilities of the LUKOIL Group Entities in line with the applicable health, safety and fire safety requirements;

  • make sure that the set tasks are accomplished at the current level of research and technology.

The International Association of Trade Union Organizations of PJSC LUKOIL jointly with the management of the LUKOIL Group Entities exercises administrative and public control aimed at securing healthy and safe labor environment.

In 2015 commissions for occupational safety, technical labor inspection of the trade union organizations, jointly with social inspectors conducted more than 16,000 various inspections and examinations. As part of inspections special attention was paid to the provision of special personal and collective protective equipment to the employees, timely medical examinations, implementation of measures based on the SWA outcomes and payment of compensations for work in harmful labor conditions.

More than 3,000 authorized trade unions for occupational safety were actively involved in these activities.

Leadership promotion and consolidation of the corporate safety culture among the employees of the LUKOIL Group and those of contractor companies are considered top priority tasks for the Company.

In 2016 the Company introduced a leadership and safety culture support standard that is inherent part of the common corporate culture and the Code of Business Conduct, as well as the core element of the LUKOIL Group’s HSE Management System.

Leadership and safety culture development trends:

  • involvement of personnel of all levels and subdivisions into conscious and active fulfillment of safety requirements;

  • daily demonstration of safe conduct and personal commitment to safety principles;

  • development of opinions, beliefs and behavioral patterns in employees that would be focused on active management of industrial and professional risks.

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