LUKOIL is engaged in onshore and offshore activities that can potentially pose a risk to territories, residents, and the environment. We cannot prevent every incident, but we recognize our responsibility and apply the principle of due diligence to mitigate risks and prevent incidents and
To achieve these goals, LUKOIL Group has committed to take all available steps and to effectively implement them in order to mitigate the risk of injuries and occupational diseases, accidents, and emergencies. This commitment is part of the LUKOIL Group HSE Policy. Reliable functioning of the Integrated HSE Management System is key to achieving the goals.
We strive to comply with global best practices and have consistently maintained low rates of accidents, work-related injuries, and occupational diseases for a long
Industrial Safety Program
Thanks to the measures taken as part of the ISP programs over the long term, there has been a steady improvement in pipeline system reliability and a reduction in injuries among full-time employees and contractor personnel. Most of the ISP activities scheduled for 2020 were completed, despite the challenges presented by the COVID-19 pandemic.
The year 2020, however, saw several indicators decline as a result of oil spills and an increase in the number of accidents (for detailed information, see the sections and ). The meetings of the HSE Committee and the Board of Directors addressed the issues of occupational injuries and accidents and approved action plans to reduce the likelihood of any recurrence.
The President of PJSC LUKOIL met with the heads of the Group’s entities to discuss the need to enhance industrial and environmental safety measures. Following the meeting, the President gave instructions to carry out additional audits of production facilities. As part of implementing this order, we arranged for an inspection of equipment and preparedness of all our Russian organizations to prevent and respond to oil spills.
- The technical condition of facilities and machinery was inspected and evaluated with due regard to the environmental impact. Emphasis was placed on reservoirs and tank farms located in the vicinity of water bodies.
- All mothballed sites were inspected, and proposals were prepared to terminate or continue operating the equipment.
- Technical means and the availability of trained personnel of the Emergency Response Teams were carefully reviewed. A new procedure for continuous monitoring of the ERT efficiency was introduced during the pandemic. Plans for emergency operation drills were adjusted: in regions with a complicated epidemiological situation, full-scale drills were replaced by office- and site-based training to minimize contact among participants.
Measures to prevent spills and emergencies
The Company has a system of measures to prevent spills and emergencies.
A mandatory assessment is made of the risks of potential spills using scenario simulation at the stage of designing production activities, as well as during the operation of production facilities.
All of our Russian entities operating hazardous production facilities have Emergency Spill Prevention and Response Plans (SPR Plans) in place. Each document contains step-by-step instructions for emergency prevention, detection, and response activities to ensure a rapid response and efficient cooperation between emergency response and recovery personnel.
LUKOIL Group entities have set up emergency response
The arrival of ERT on the scene of an incident is regulated by the SPR Plans. If an incident takes place in a remote area, the first to respond is the ERT closest to the site of the emergency. The containment period for the oil spill may not exceed four hours (in case of a spill on waters) and six hours (in case of a land spill) from the moment the spill is detected or the notification about the spill is received.
Employees from our corporate ERTs are also involved in liquidating emergencies that occur in LUKOIL’s regions of operation but are not associated with the Company’s activities. This way, LUKOIL assists regional administrations and local communities. For instance, our response workers helped with putting out forest fires in Western Siberia in 2019.
Measures for contractors’ performance quality enhancement
PJSC LUKOIL uses a comprehensive approach which combines control and interaction methods with contractors to enhance the quality of work performed by service organizations of exploration and production.
- In-house and outsourced supervisors, who act as authorized representatives of the customer, continuously monitor service companies’ compliance with design documentation, work plans, industrial safety requirements. Checklists were elaborated to cover the entire scope of issues, from record-keeping to the quality and safety of work performance. Carrying out hydraulic fracturing works is accompanied by enhanced control of supervisors and hydraulic fracturing specialists.
- Joint discussions of field engineering reports with service companies and the chief designer (LUKOIL-Engineering) for design solutions implementation and cooperation on ways to improve the quality of service.
- Regular control field audits are conducted to inspect work performance of engineering and technical personnel of drilling units and occupational and industrial safety departments.
- West Siberian sites employ a method designed and tested to rate well construction and reconstruction service companies.
- Constant interaction is maintained with service companies, for discussion of pressing issues and a joint search for improving the quality and safety of operations. Contractor representatives’ participation in Safety Days, where there is an opportunity to learn best practices and present their own experiences.
The existing contracts with all contracting entities provide for penalties for any violations of health, safety, and environmental requirements.
In 2020, more than a thousand