The Nenets Autonomous Area is part of the Timan-Pechora oil and gas province that encompasses two entities of the Russian Federation, the Komi Republic and the Nenets Autonomous Area. This is a region with complicated logistics, remote settlements, and almost inaccessible fields.
LUKOIL started its operations in the Nenets Autonomous Area in 1999. Currently LUKOIL is involved in oil and gas production, petroleum products marketing and transportation in the region. LUKOIL is the largest oil and gas producing company in the Nenets Autonomous Area.
The Nenets Autonomous Area has a unique asset of the Company: Varandey fixed offshore ice-resistant offloading terminal (FOIROT) that has been registered in the Guinness Book of Records as the world's most northerly offloading terminal.
Company Presence
| Subsidiary | Activities |
|---|---|
| LLC LUKOIL-Komi |  Oil-and-gas field development and production |
| LLC LUKOIL-Trans |  Transportation |
| LLC LUKOIL-Severo-Zapadnefteprodukt |  Petroleum Product Marketing |
| LLC LUKOIL-Rezervnefteprodukt | Petroleum Product Marketing |
| LLC LUKOIL-ENERGOSETI |  Electric power transportation |
The Company completed construction and commercial tests of an oil pipeline made of a special steel grade less sensitive to exposure to the components contained in oily liquid connecting the East-Sarutayuskoye and the Yu. Rossikhin fields.
The Yuryakha-Pashshor oil pipeline was commissioned, with the length exceeding 30 km.
Development operations commenced at the East-Perevoznoye, a new promising field.
A cutting-edge sludge dump site capable of accepting 5 thousand cubic meters of various wastes was constructed at the Inzyreyskoye field.
With a view to preserving the natural energy within the reservoirs of oil-bearing formations, advanced modular cluster pump stations (MCPS) utilizing domestically manufactured equipment were commissioned at the Inzyreyskoye and Toboyskoye fields.
As part of the investment program a range of major projects is currently underway: construction of a multi-phase unit at the East-Sarutayuskoye field; launch of the preliminary water removal unit at the Yu. Rossikhin field; reconstruction of booster pumping station DNS-2 with the preliminary water removal unit at the Kharyaginskoye field; reconstruction of the main oil and gas pipeline between the Pashshorskoye and South-Shapkinskoye fields.
The Kharyaga gas compressor station was commissioned that gathers associated petroleum gas from the Kharyaginskoye, Shapkinskoye, and Inzyreyskoye fields and transfers it further to the Usinsky gas processing plant.
A gas desulfurization and sulfur granulation unit was commissioned at the South Khylchuyu field.
Varandey fixed offshore ice-resistant offloading terminal (FOIROT) was commissioned.
The Tedinskoye, Inzyreiskoye, Toboiskoye, Varandeiskoye, Yzhno-Khylchuyuskoye, Myadseiskoye fields were commissioned.
One of LUKOIL's priorities is conservation of the fragile ecosystem of the Nenets Area and its subarctic territories, aimed at minimizing the environmental risks associated with the extraction of minerals. Trying to meet this objective, the Company implemented a number of important environmental projects.
A major boost was given to the corporate program for improved utilization of the petroleum gas produced along with oil.
Power parks were constructed at the South Khylchuyu and Tedinskoye fields that utilize APG as fuel. In 2012 the Kharyaga-Inzyrei-Yuzhnoye Khylchuyu gas pipeline was commissioned. It delivers associated petroleum gas to the Yuzhnoye Khylchuyu power center and reduces the emission of hazardous substances into the air.
In 2017, in cooperation with the scientists from the Marine Mammals Council LUKOIL's ecologists studied the impact of refinery operations on the ecosystem of the Arctic polar region. Research was conducted at one of the largest onshore breeding grounds in the south-eastern part of the Barents Sea, on Vaigach Island and on the Lyamchin Peninsular. TPP LUKOIL-Severneftegaz conducts operations close to these areas, and the Varandey terminal is also located here in the inner harbor. The activities were financed by the LUKOIL Charity Fund. As a marker species to study the ecosystem condition the scientists chose the Atlantic walrus, one of the most vulnerable species of the Northern fauna listed in the Red Data Book of the Russian Federation.
In Naryan-Mar, employees of OOO LUKOIL-Komi and Varandey terminal received a training in the response to possible incidents in the coastal area that was held by the Sea Alarm Foundation in cooperation with the Russian Ministry of Natural Resources and Environment. It continued the series of activities undertaken by LUKOIL to address the challenge of safe Arctic development that was set by the Russian President. The exercises proved to be unique for Russia in terms of their subject and scale.
In 2018, the personnel of the Tedinskoye oil field operated by OOO LUKOIL-Komi in cooperation with the contractors' employees joined the integrated special tactical maneuvers dedicated to response to emergencies occurring in river waters and onshore.
The LUKOIL Group entities in the Nenets Autonomous Area are actively involved in the national and regional environmental events and campaigns, such as the "Green City", "The River Band", "Park Parade", etc.
LUKOIL contributes to social and economic development of the regions covered by its activities. The agreements concluded between the Company and the Administration of the Nenets Autonomous Area serve this purpose. As part of its obligations in line with the agreements many infrastructure assets were built or renovated in the region, including schools, kindergartens, cultural and sports facilities, etc.
In 2005—2006 as part of the Agreement implementation, more than 70 apartments were built and donated to the NAA administration.
Major support is provided to the villages of the Area. For example, in 2006 as part of the agreement between the NAA Administration and the Company LUKOIL's funds were allocated to build a boarding school in the village of Nes, a school for 190 students in Karataika, and a school in Khorei-Vera. As part of the 2009-2010 minutes, extensive funds were allocated to purchase potable water units for the villages of the Area to resolve one of the most important issues — providing potable water to the residents of the NAA as part of the federal and regional program "Clean water".
On top of that, a program to buy modern medical equipment for district healthcare institutions was implemented in the villages of Nes, Nizhnyaya Pesha, Oksino, Velikovisochnoye, Khorei-Ver and Kharuta, and the mobile medical team of the NAA Healthcare department at the Central Disctrict Polyclinic of the Zapolyarny region.
In 2008 LUKOIL built the Seven Petal Flower kindergarten for 300 children in the town of Naryan-Mar, which became a prototype for the construction of kindergartens in the regions of LUKOIL operations implemented in 2012-2014.
LUKOIL supports indigenous minorities of the North living in the NAA. In addition to compensatory payments stipulated by the RF legislation for oil and gas production at the traditional economy territories, LUKOIL purchases mobile bulkheads, workwear and vehicles (snowmobiles and TRECOLs). To develop reindeer breeding, the Company purchases refrigeration units, finances animal disease control measures to treat reindeer, helps reindeer farms with helicopter transportation.
In December 2018, Khorei-Ver community hosted the 10th charity project titled the "Red Raw-Hide Tent" that LUKOIL holds jointly with the Area's Administration. The project aims at health improvement of the indigenous tundra inhabitants. Over the decade of this project the on-site teams of doctors examined over 6,000 inhabitants of remote communities and nomad camps. As part of every stage implementation, doctors receive patients onsite, medical aid is administered, cultural and educational events are organized, reindeer-breeding teams receive medical supplies.
As part of the agreement between PJSC LUKOIL and the NAA Administration, for a number of years the Company has been participating in the construction and maintenance of the only winter road connecting the Area with the "mainland".
LUKOIL supports traditional events in the NAA, such as the famous "Buran-day" snowmobile rally competition, involving residents of the Area, and representatives of the local authorities. Also, the Company supports sporting competitions among reindeer breeders and chum-keepers Siamiankhat mereta (the Nenets for "The Fastest"). In addition, LUKOIL traditionally takes part in the Deer Day celebrations.
The Company also supports orphanages, educational institutions, societies for the disabled, veterans and low-income citizens. LUKOIL's means are allocated to purchase of equipment, furniture and accessories, organization of events dedicated to the Defender's Day, the Victory Day, the Children's Day and the Knowledge Day.
Since 2005 in the NAA the Company runs the Social and Cultural Projects Competition (together with the LUKOIL Charity Fund). As part of the competition, the Company supports NGOs that implement social, cultural and environmental projects, such as Yasavei and Yzvatas.
Following an established tradition, the Company fosters sports organizations and invests in healthy lifestyle promotion. For example, LUKOIL annually supports the sports competitions between municipalities of the Zapolyarny District and the district ball-room dancing contest, "Rhythms of the Arctic". LUKOIL helps NAA municipalities to purchase sports equipment, build sports grounds and hockey rinks.
Support is provided to NAA religious organizations. LUKOIL allocated funds to restore the Annunciation Church in the village of Nes, built a chapel in the village of Aneg, made a significant contribution to the construction of the church buildings in the town of Naryan-Mar.
In 2018, a number of social projects were implemented in the Nenets Autonomous Area. The movie theater of the Arktika community center was fitted out with new equipment. A sculptural composition dedicated to the First Geologists of the Far North was installed in the Iskateli community. The Company supported the repairs of the Victory Obelisk memorable sign as part of the improvement and preservation of architectural and cultural appearance of Smidovicha street in Naryan-Mar.
