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Accident Elimination

The Company pays special attention to mitigating the risk of emergency oil spills, and readiness of the LUKOIL Group Organizations to eliminate possible oil spills.

The Company purchases cutting — edge equipment designed for containment and elimination of oil and petroleum product spills.

Employees receive special training to ensure they are ready to take quick efficient response measures in case of emergency. To deal with elimination of oil and petroleum product spills the Company has created and certified 42 emergency rescue teams (with a total headcount of 1,885 employees). In 2014—2015 the on — site certification committee issued certificates to 34 out — of — staff emergency rescue teams and 622 rescuers of the LUKOIL Group Organizations.

Prevention and emergency response action plans were developed for all of the facilities that constitute a potential source of emergency oil and petroleum product spills.

Safety of the Company’s offshore facilities being the most dangerous assets, is ensured by professional emergency and rescue teams of FBI “Marine Service of Rosmorrechflot” (Federal Agency for Maritime and River Transport of Russia) who have the best equipment and experience in offshore oil spill elimination.

Every year the LUKOIL Group Organizations conduct drills and engage management bodies, professional and out — of — staff emergency and rescue teams. In 2014—2015 more than 280 exercises simulating the elimination of oil and petroleum product spills were conducted at the Company’s facilities.

The largest and most important were international comprehensive drills entitled “Arctiс — 2014”, “Caspian — 2014”, international integrated drills simulation the elimination of oil spills conducted in the Baltic region within the water body of OJSC RPK — Vysotsk “LUKOIL II” in 2015, and comprehensive drills entitled “Kaliningrad 2015”. In the course of the exercises LUKOIL’s management and emergency and rescue teams demonstrated great skills, as well as excellent interaction with the professional emergency and rescue during oil spill elimination.

LUKOIL has had more than a decade of accident — free operations at its offshore facilities (marine terminals, oil and gas production platforms, sub — sea pipelines, and other similar infrastructure facilities).