Our main approach to industrial waste management lies in applying the most advanced technologies, preventing excessive build-ups of waste at the facilities of LUKOIL Group entities, and placing waste at specialized facilities that meet modern requirements.
Most production waste in Russia and abroad falls under non-hazardous or low-hazard categories (classes).
In Russia, more than 60 percent of non-hazardous and low-hazard waste (classes IV and V under the Russian classification) consists of drilling waste and used drilling mud generated during drilling and well operation. These are mostly recycled. Their volumes depend primarily on the extent of drilling and repair work, and they are mainly disposed of by contractors.
We employ a pitless drilling technology on environmentally exposed areas in Russia, according to which generated drilling waste is not stored or landfilled at drilling sites, but sent away for use or neutralization.
The share of hazardous waste (Hazard Classes I–III) was about 2 percent as at the beginning and end of 2020. Classes I and II wastes containing substances that are dangerous to human life and health and cause permanent changes in eco-systems are subject to mandatory disposal by specialized organizations. Hazard Class III (moderate) waste includes a portion of oil-containing waste (with an oil product content above 15 percent). That is also subject to mandatory disposal.
In 2020, waste generation increased because of a higher share of construction waste at the Nizhny Novgorod and Volgograd refineries, dismantling operations to build process facilities, and a 1.5-fold increase in the volume of production drilling at LUKOIL-Komi LLC.
Most of the long-term storage waste (596 thousand tonnes) still consists of waste-activated sludge generated during wastewater treatment of the Saratovorgsintez plant and is stored at the deposition site. The site is included in the State Register of Waste Disposal Facilities.
We monitor the quality of waste management operations performed by contractors by examining how they handle waste, the state of the production control system, and availability of adequate resources to fulfill their contractual obligations.
|Waste at the beginning of the reporting year||Waste generated per year|| Waste ||Waste at the beginning of the reporting year||Waste generated per year|| Waste |
| Russian entities (Hazard Classes ||23||253||21||21||304||21|
|Non-hazardous and low-hazard waste||863||1,418||899||901||1,731||867|
| Russian entities (Hazard Classes ||863||1,418||899||899||1,656||863|
Detailed information, including changes in reporting boundaries year-on-year, is provided in Appendix 7.
|Waste at the beginning of the reporting year||956||910||947|
|Waste generated during the reporting year||1,556||1,783||2,178|
|Including oil-containing waste||264||294||401|
|Received from third parties||6||5||4|
|Amount of waste used, neutralized, and handed over to specialized entities, as well as landfill waste||1,609||1,751||2,217|
|Waste at the end of the reporting year||905||947||912|
1. Detailed information, including changes in reporting boundaries year-on-year, is provided in Appendix 7.
2. Thermal treatment is mainly used for waste neutralization.
Pre-privatization damage management
The Group entities continue their efforts to dispose of preprivatization waste; in 2020, the amount across LUKOIL Group decreased by 52 thousand tonnes (in 2019, by 69 thousand tonnes).
Before some of the oil producing and refining assets in Russia and Eastern Europe were privatized, significant volumes of oil-containing waste (oil sludge in special sludge collectors and evaporation ponds) had accumulated at production facilities. The Company refers to these as "pre-privatization environmental damages". LUKOIL disposes of this waste at its own expense at most of its facilities. As of 2020, such waste was fully processed at the refinery in Romania and LUKOIL-West Siberia, RITEK, and the Volgograd refinery in Russia. The refinery in Bulgaria continues to operate on schedule and in compliance with government funding. According to Bulgarian national legislation, the state is the owner of this waste.
|Waste at the beginning of the reporting year|| Waste eliminated ||Waste at the end of the reporting year|
In implementing the scheduled measures to eliminate pre-privatization damage at LUKOIL-Volgogradneftepererabotka LLC for 2020, the scope of pre-privatization damage was revised as part of a geodesic survey at the end of 2019. The total pre-privatization damage was changed from 218 thousand tonnes to 223 thousand tonnes.
Remediation of oil-contaminated land is carried out by Russian oil and gas production entities at all fields. In 2020, 44 hectares of land were reclaimed.
Following an oil spill and after the cleanup of the leaks and site containment, the contaminated land remediation stage begins. Specialized organizations carry out the entire scope of reclamation activities on a contractual basis following the remediation projects. These projects are developed and approved under established procedures.
The remediation comprises the following stages:
- technical (collecting as many pollutants as possible and replacing contaminated surface soil, applying oil-oxidizing biopreparations, loosening soil for better aeration);
- biological (sowing seeds or seedlings, fertilizing).
Remediation may involve complete removal of the contaminated layer, which is moved to specialized bioremediation sites, while clean soil is brought to the reclaimed area for biological remediation. When the contaminated area is significant, the most effective method is the microbiological decomposition of oil at the spill site. Once the content of hydrocarbons in the soil is reduced to low levels, the restored areas are replanted for phytoremediation of the land. If the contamination degree is average, plant cover of the site takes two years, bringing the entire remediation process to two-three years.
After the remediation, the respective state authorities inspect the reclaimed areas for compliance with the established criteria.
|Indicator boundaries||Land area at the beginning of the year||Land remediated during the year||Land contaminated during the year||Land area at the end of the year|
|Total across LUKOIL Group||61.3||50.3||52.1||63.1|
|Total across LUKOIL Group||63.1||56.6||40.0||46.4|
|Total across LUKOIL Group||46.4||44.4||136.6||138.6|