In LUKOIL Group the corporate Integrated System of Management of Industrial, Fire, Radiation Safety, Emergency Prevention and Liquidation, the Protection of Civilians, Occupational Safety and Environmental Protection (hereinafter, the HSE Management System) is in effect, and forms an essential part of the general management system. An integrated approach to HSE management has been developing on a voluntary basis since the mid-1990s.
To develop the HSE Management
System, the Company has in place
the Health, Safety, and Environmental
Committee of PJSC LUKOIL.
The Committee reviews relevant
HSE matters, including HSE Policy
development, measures for material
HSE risks and environmental
matters management, proposals
for motivating the Group entities’
employees to comply with HSE
requirements (including through
KPIs), HSE compliance performance,
and HSE activities performance analysis,
as well as responses to regulatory
and other changes. The Committee also
prepares proposals to the Company’s
governance bodies for approving key
HSE documents, such as the Health,
Safety and Environment Policy
Implemented by LUKOIL Group
in the Twenty-First Century, targeted
segment-specific functional programs,
and the Company’s local regulations.
programs performance is reviewed
annually at the Management Committee
meeting. PJSC LUKOIL’s Board
of Directors also annually reviews
issues on the Company’s HSE status
and measures to improve occupational
safety, and makes decisions
on the priority areas for improving
the HSE Management System.
The HSE management system has been certified for compliance with the international standards ISO 14001 and OHSAS 18001 since 2001; it is also based on Russian law provisions and the legislation of the countries in which LUKOIL Group operates. The sphere of certification comprises LUKOIL Group entities in whose operations principal risks in the area of health, safety, and environmental protection from time to time arise.
An ISO 14001 Certificate serves as an evidence that the Company has adopted an environmental policy and follows it in its operations, continuously improves the environmental management system and acts to prevent the environmental impact.
An OHSAS 18001 certificate evidences that the Company manages project risks inherent to the protection of health and safety of its employees and the local residents. The key elements of the certificate include identification of risk factors, risk assessment and control, compliance with regulatory requirements and continuous improvement of labor safety.
LUKOIL Group Policy for Health, Safety, and Environmental Protection in the 21st century (hereinafter, the Policy) is approved by Resolution of PJSC LUKOIL Management Committee dated 25 May 2020.
Targeted functional programs
In accordance with the corporate requirements for planning HSE activities, LUKOIL Group annually creates threeyear medium-term targeted functional programs on a sliding basis in the sphere of environmental and industrial safety, which form an integral part of the Budget and Investment Program. As a part of the planning, program parameters are determined for one year and benchmarks for two years.
The implementation of environmental and industrial safety programs for 2018–2020 have facilitated a reduction in negative environmental impacts and improved industrial safety and occupational safety performance.
Structure of the 2018-2020 Environmental Safety Program for LUKOIL Group Entities
Area Basic measures
Sustainable use of water resources, prevention of water body contamination
upgrade of the existing and new water treatment facilities;
inspection of pipeline water crossings;
purification of the contaminated ground water from drainage systems
Reduced atmospheric pollutant emissions
upgrade and construction of facilities enhancing APG utilization;
upgrade and construction of new power generating units for the power engineering facilities with enhanced KPI and high efficiency factor
replacement and upgrade of the equipment at the Company's facilities;
optimization of applied techniques: timely adjustment of combustion modes for furnaces, boilers, etc.
Oil waste disposal
waste neutralization operations;
Prevention of soil contamination and sustainable use of land
reclamation of disturbed and oil contaminated land;
diagnostics and overhaul of pipeline transport, as well as inhibitor protection.
financing of compensation operations for fish breeding;
targeted monitoring of environmental factors;
biodiversity conservation events (in accordance with the Program for the Conservation of Biological Diversity).
Since 2003, a system of insurance against irretrievable risks and risks that pose a threat to the business of the Group entities is in place in the LUKOIL Group (the Group). The Group’s basic local regulation in the field of insurance is represented by the Basic Provisions on the Strategy and Policy for Insurance Coverage for LUKOIL and its Subsidiaries enacted by LUKOIL’s order No. 110 of May 30, 2003. As part of the above system an all-round approach was adopted to voluntary insurance of the Group organizations’ third party and environmental liability.
To mitigate these risks, we designed and successfully deployed the Environmental Protection, Occupational Health and Safety Management System certified to ISO 14001 and OHSAS 18001, as well as implemented:
target corporate HSE programs;
industrial control over the operation of hazardous production facilities;
diagnostics (non-destructive testing) and monitoring of equipment performance;
repair and timely replacement of equipment;
a process ensuring contractors' end-to-end compliance with mandatory HSE requirements;
development of leadership and safety culture;
the appointment of qualified staff across various business levels of the Group;
special assessments and improvements of working conditions;
development of the Plans to Localize and Mitigate the Consequences of Accidents at Hazardous Production Facilities (PLMA) and the Spill Prevention, Control, and Countermeasure (SPCC) Plans; maintaining a pool of emergency personnel and resources; and training personnel who operate hazardous production facilities as well as the emergency response teams applying PLMA and SPCC Plans; and
other measures aimed at reducing accident and injury rates at production sites of LUKOIL Group entities.