REPORT SUSTAINABLE DEVELOPMENT2020 RNG JSC SUSTAINABLE DEVELOPMENT REPORT 3
ADDRESS CONTENTS FROM THE CEO
ADDRESS FROM THE CEO...... 3 COMPANY PROFILE...... 4 Resource Base...... 6 RNG JSC’s Goals...... 8 RNG JSC’s Strategy...... 8 Competitive advantages...... 9 Priority areas of sustainable development for RNG JSC...... 9 Specifics of working in Yakutia...... 9 Timeline of important events in 2020...... 10 Key financial indicators in 2020...... 12 Dear friends! Taxes and mandatory payments...... 12 Vladimir Rakitin Payments under contracts in favour The year 2020, when the whole world confronted the pandemic, evidently of state-controlled companies...... 12 showed how important it is to maintain a harmonious balance in all spheres Key production results in 2020...... 13 of activity. RNG JSC invariably builds on the principles of sustainable development and ENVIRONMENT calculates success not only by financial and production success indicators. Environmental protection...... 16 The company participates in the economic, social and cultural development of the Republic of Sakha (Yakutia). The extent of impact on the atmosphere...... 19 The extent of impact on water resources...... 20 RNG JSC is one of the largest employers in the Mirninsky district. We provide The extent of impact on land resources and biodiversity...... 21 comfortable working conditions and protect the rights of each employee, Waste management...... 24 paying special attention to the issues of labour protection, preserving the health and safety of all staff. Our main reference point is a high level of The level of environmental opportunities...... 25 industrial safety. Over the past year, the company has done a lot of work to protect the team from the spread of COVID-19. We have provided significant SOCIAL POLICY assistance to the republic’s health care system. Human resource policy...... 34 Traditionally, the company makes a substantial contribution to improving Employee social security...... 35 the quality of life in Yakutia. RNG JSC participates in large-scale infrastructure Labour protection and industrial safety...... 39 projects, conducts sponsorship and charity activities, and provides support Contribution to regional development...... 45 to small indigenous communities of the Far North. When RNG JSC started developing the Eastern blocks of the CORPORATE GOVERNANCE Srednebotuobinskoye oil and gas condensate field, a separate division in Corporate governance structure...... 54 the city of Mirny was registered. This ensured a steady flow of taxes to local Interaction with stakeholders...... 56 budgets. By the end of 2020, the company had transferred 4.7 billion roubles ($ 66.22 mil) of taxes and mandatory payments. Anti-corruption measures...... 65 Our goal is the efficient use of natural resources and implementing projects without causing damage to the environment. RNG JSC ecologists regularly monitor the state of soil, air, and water resources, and actively implement environmental initiatives on the territory of the Republic of Sakha (Yakutia). We will continue to conduct our activities responsibly, contribute to the ABOUT THE REPORT development of the region and fulfil all obligations on matters of social responsibility. Dear readers! The methodological basis of the sustainable development report is based on the standards of the GRI (Global Reporting Initiative). RNG JSC annually publishes information on projects in the field of sustainable development on the official website and therefore adheres to the principles of transparency and openness in its work. The report reveals information about management approaches, activities and results to achieve economic efficiency, ensuring industrial and environmental safety, supporting and developing staff, promoting socio-economic development of the region of activity and respecting human rights. The report contains medium- and long-term plans. This information is of a forward-looking nature, since the feasibility of the stated intentions also depends on factors (economic, social and legal) that are outside the company’s zone of influence. In this regard, the actual results may differ from those indicated in the plans. 4 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 5
COMPANY PROFILE
RNG JSC is an enterprise of the oil and gas production industry based in the Far Eastern Federal The authorised capital of RNG JSC is 7.5 billion roubles ($ 101 mil). The main office of the District of Russia. RNG JSC was established in 2003 for the purpose of developing hydrocarbon company is in Moscow, while the offices of separate divisions are in Yakutsk, Mirny, Ust-Kut, raw materials and is part of the Eastsib Holding group of companies. Samara, Lensk, Irkutsk and at the field. The assets of RNG JSC are in Eastern Siberia, a region associated with the promising development of the Russian oil and gas industry.
Since 2010, the company has held a licence for the exploration and production of hydrocarbons at the licence area «Eastern blocks of the Srednebotuobinskoye oil and gas condensate field» (EB By developing unique oil and gas fields in Eastern Siberia, RNG JSC directs the energy of natural SB OGCF), located in the Mirninsky district of the Republic of Sakha (Yakutia). SB OGCF is one of the largest fields in Eastern Siberia in terms of proven oil reserves. resources for the well-being of people. A modern, efficient and responsible approach to the organisation of work ensures the growth of the company and the welfare of its employees.
In 2014, RNG JSC began the active development of the licence area «Eastern blocks of the RNG JSC is one of the largest employers and taxpayers of Yakutia. The goal of the company is Srednebotuobinskoye oil and gas condensate field». In 2018, the company started a trial pilot the effective development of oil and gas fields in remote areas with difficult climate conditions. operation of the field. On 29.08.2019, the solemn launch of the industrial operation of the RNG JSC is a high-tech business. The company constantly improves production indicators and Eastern blocks of the SB OGCF took place. The extracted oil is supplied to the Eastern Siberia- Pacific Ocean pipeline system. introduces innovative and digital technologies.
To ensure the production of hydrocarbon raw materials at the field, RNG JSC constructs the necessary infrastructure: high-voltage power transmission lines, oil collection points, oil Following the principles of sustainable development is part of the company’s corporate culture, collection networks, water pipelines and reservoir pressure maintenance systems, as well as which is embedded in its long-term strategy. The company makes a significant contribution a network of technological passageways. The company makes a significant contribution to to environmental protection, paying great attention to labour protection and industrial the social and economic development of the Republic of Sakha (Yakutia) and successfully safety, and actively participating in social projects of the region, and developing international cooperates with local authorities. cooperation. 6 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 7
Resource base Suldyukar Nyurbinsky "Rosneft" r. Vilyuy lgyattinsky Svetly "Rosneft" r. Vilyuy Chernyshevsky Arylakh
Bakhchinsky South- "Surgutneftegas" Syuldyukarsky West Kempendyaysky “EastSib Holding” USRF* Bagdynsky "Surgutneftegas" “Live diamonds of Yakutia” Mirny Stanahsky Kuyabylakhsky "Surgutneftegas" Almaznyi r. Vilyuy Tuobuya RNG JSC holds a licence for Irelyachsky "Irelyakhneft" the exploration and production r. Ulahan-Botuobuya Suntar of hydrocarbon raw materials Kempendyaysky Mirninsky Srednevilyuchansky USRF Kubalahsky "INK" within the Eastern Blocks of the Zaria "Surgutneftegas" Suntarsky "Rosneft" "INK" Srednebotuobinskoye Yuryakhsky Tektyuysky "Surgutneftegas" oil and gas condensate field, "Alrosa-Gas" Hoptolokhsky Namansky Tas-Yuryakhskoe Vilyuysko- “Tuymadaneftegaz” USRF and is also an operator (agent) The North Blocks eld Dzherbinsky "Alrosa-Gas" "Gazprom" "Surgutneftegas" for the development Verhne- Tas-Yuryakh dzhunkunsky Iktekhsky Verhnevilyuchanskoe eld and exploration of fields "INK" Dzhunkunsky "INK" Verkhnemarhachansky "INK" "Gazprom" at the following licence Verkhnebiryuk “EastSib Holding” Ergezheysky “Siberian oil company” Murbaysky areas (LAs), affiliated with The Central Blocks "Lensk-Gas" "Taas-Yuryakh Monulahsky “EastSib Holding” the company which are part Neftegazodobycha" “EastSib Holding” Mukhtinsky of Eastsib Holding: The Eastern Bloсks “Tuymadaneftegaz” Srednebiryuk • Yuzhno-Syuldyukarsky; “RNG” Ulugursky South- "Lensk-Gas" "Rosneft" • Monulakhsky; dzhunkunsky "INK" Otradninskoe eld GDK Kurungsky "Lensk-Gas" "Lensk Neft" Srednelensky Marha • Murbaysky; "Taas-Yuryakh Betinchinsky "Rosneft" • Betinchinsky. Byuksky Neftegazodobycha" Hotogo-Murbaysky “EastSib Holding” "INK" "VSNK" Nizhnegerbinsky "Rosneft" “Surgutneftegas” Borulahsky Kaderginsky USRF Urinsky USRF “Tuymadaneftegaz” "VSNK" “Tuymadaneftegaz”
Chayandinskoye “Power of Siberia”1420 mm gas pipeline Lensk eld Okleminsk “ESPO” oil pipeline Cheredeysky "Gazprom" r. Lena Horonohsky 1200 mm Nyuya-Iuzhnaia “Siberian oil company” "Surgutneftegas" USRF Cheredey
Irkutsk region
r. Lena Macha Olekminsky "Rosneft"
KuduKuyol
Peledui
Dikimda Vitim
Tokkinsky “EastSib Holding”
Chara
* - unallocated subsoil reserve fund 8 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 9
RNG JSC’s Goals: RNG JSC’s Competitive Advantages: - improving efficiency of developing the Eastern blocks of the - the location of the EB SB OGCF in close proximity to the Eastern Siberia- Srednebotuobinskoye oil and gas condensate field; Pacific Ocean oil pipeline and the Power of Siberia gas pipeline; - the production of the ESPO brand of oil, light East Siberian oil; - preserving the environment and fulfilling social obligations; - highly qualified employees; - developing human capital, increasing the employment and welfare of - the company is operating without bank loan funds. the Republic of Sakha (Yakutia); The successful implementation of the strategy and the use of strategic advantages will ensure not only high profits for the company’s shareholders, - growing the shareholder value and maintaining the stable activity of the but also support for local people in Eastern Siberia, providing jobs for company. The company adheres to high indigenous people. The successful implementation RNG JSC has implemented an integrated management system in accordance standards of industrial safety, RNG JSC determines the priority areas of sustainable development, of the strategy and the use of taking care of the ecology with the requirements of international standards ISO 9001, ISO 14001, considering the specifics of the business and the scope of activities in strategic advantages will ensure not of the Republic of Sakha (Yakutia), OHSAS 18001. The system was developed by the International Organisation accordance with the views and interests of interested parties. The company only high profits for the company’s ensuring that natural resources are for Standardisation (ISO) and is based on the idea of cooperation and plays is constantly monitoring changes in legislative regulation and trends, which shareholders, but also support for used carefully, and environmental a key role in transforming the world to achieve its sustainable development. relate to aspects of sustainable development. local people in Eastern Siberia, legislation and standards are The ISO 9001 standard is based on several quality management principles, providing jobs for indigenous strictly observed. such as strong customer orientation, motivation and involvement of people. management, a process approach and continuous improvement. The Priority areas of sustainable development for RNG JSC: application of ISO 9001 helps to ensure that customers consistently receive - innovation; high-quality products and services. - care for the environment; - human capital investment; The ISO 14001 standard is a fundamental set of rules used by organisations around the world that design and implement effective environmental - technical and industrial safety; management systems. The standard is used to improve the efficiency of - charity; resource use, reducing losses and costs. - sustainable business model; - compliance with ISO standards; The OHSAS 18001 standard contains requirements and guidelines for the - development of the Mirninsky district of Yakutia; development and implementation of industrial safety and labour protection - long-term cooperation with international companies. management systems, the application of which ensures the organisation’s ability to manage risks in the management system and improve the efficiency of its operation. The requirements of OHSAS 18001 are fully compatible with the requirements of ISO 9001 and ISO 14001. SPECIFICS OF WORKING IN YAKUTIA The company adheres to high standards of industrial safety, taking care of the RNG JSC conducts economic activities in the Republic of Sakha (Yakutia) in ecology of the Republic of Sakha (Yakutia), ensuring that natural resources difficult climatic conditions and at a considerable distance from industrial centres. The Eastern blocks of the Srednebotuobinskoye oil and gas are used carefully, and environmental legislation and standards are strictly condensate field are located within the Leno-Vilyuyskaya Plain of the Central observed. RNG JSC pays great attention to working with the indigenous Siberian Plateau, in the interfluve of the Lena and Vilyuy, in the basin of the small-numbered peoples of the North and participates in the preservation middle course of the Ulakhan-Botuobuya River (the right tributary of the of their national culture. Vilyuy River). The Taas-Yurekh River and several other, smaller rivers also represent the hydrography of the district. The relief consists of a hilly plain, dissected by a dense network of temporary watercourses. The absolute elevation marks of the relief are 300-390 m and RNG JSC’s strategy: the relative extensions are 30-50 m.
- using innovative technologies in the exploration and development of The climate of the Mirninsky district is sharply continental with a long, severe deposits; winter and a short, warm summer (the maximum temperature can reach +30°C). The average duration of winter is 7 months, with clear weather and - attracting the largest international and Russian contractors, as well low temperatures. Negative temperatures in winter can reach -53 – -57°C. as leading industry and academic research institutes of the Russian In summer, there is little precipitation in the area. The soil dried during the Federation to perform the work; summer, freezing at the end of September, goes under the snow in a dry - minimising the impact on the environment by complying with strict state. Snowfall is most typical for October – November. The thickness of the requirements during work production; snow cover for areas of flat land is 35-50 cm. There is snow cover for about 200 days per year. - complying with high standards of industrial safety; The main feature of the engineering and geological conditions of the locality - high level of corporate responsibility; is the widespread development of permafrost rocks that reach down to a depth of 400 m. The thickest seasonal thawing is 3.5–3.9 m which is typical - readiness for constructive interaction with interested parties. for watershed areas with pine forest cover. 10 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 11
Timeline of important events in 2020
20 January 17 November First million tons of crude oil produced RNG JSC completed Rospotrebnadzor inspection The launch of the Eastern blocks of the Srednebotuobinskoye oil and gas condensate According to the results of the inspection, the federal service did not detect any field into commercial operation took place on 29.08.2019. The construction of violations. The company complies with all the requirements for the prevention of production facilities was completed in the shortest possible time. coronavirus infection.
11 March 25 November RNG JSC became a partner of the international forum “Open Data Day” A promising gas condensate field was discovered, The company became a sponsor of the forum «Open Data Day», which was held on which was named after I. M. Menshikov March 6-7 in Moscow at the National Research Technological University (NUST) «MISiS». Experts highly assess the potential of this area and the possibility of including the object The event was organised by the NPO «Infoculture» and the Association of Data Market in the resource base of the main gas pipeline «Power of Siberia». According to the data Participants. of the first operational calculation, the initial recoverable gas reserves at the new field amount to 27 billion m3.
28 April 27 November RNG JSC was included in the list of backbone enterprises of the fuel and RNG JSC acted as the general partner of the Moscow energy sector International Financial and Economic Forum The Ministry of Economic Development has included RNG JSC in the list of strategic The seventh annual forum «Greater Eurasia in search of new ways and directions of enterprises of the fuel and energy sector. The company is a city-forming enterprise and cooperation» was held in the format of a videoconference. Company employees spoke has a significant impact on the development of the Republic of Sakha (Yakutia). at two industry panels.
5 October 2 December A bridge over the Malaya Botuobuya River was opened in Yakutia. Employees of RNG JSC received awards for their work The bridge is included in the Federal programme for the construction of benefitting the Republic of Sakha (Yakutia) the Vilyuy highway For their contribution to the socio-economic development of the Republic of Sakha The route of the highway runs from Tulun, Irkutsk region to Yakutsk, the length of the (Yakutia), the Chairman of the Investment Committee under the Board of Directors, bridge is 192 m and the length of the paved access roads is 2.7 km. Construction work Deputy CEO for Drilling and specialists of the construction division of RNG JSC were started in September 2018 and construction companies belonging to Eastsib Holding awarded. were involved. The bridge was built and commissioned ahead of schedule.
23 October 8 December RNG JSC became a partner RNG Procurement LLC acquired a warehouse base in Lensk of the Russian School of Economics The acquired warehouse base in Lensk is distinguished by its favourable location: A charity project (amounting to $ 1 million) was launched in September 2020 and located near the river port and an oil depot. The object consists of three arched slopes, includes a student support programme and two named professorial positions. RNG JSC a platform of 7 hectares with a hard surface, and a gantry crane with the capability of contributes to the development of modern economic education. lifting 12 tons.
9 November 23 December Completion of a solid waste landfill RNG JSC received on the Eastern blocks of the Srednebotuobinskoye field the All-Russian MediaTek Award Thermal neutralisation of solid household and industrial waste will be carried out at Since the beginning of the COVID-19 pandemic, the company has been aiding the RNG JSC’s new landfill. The landfill is intended not only for the disposal of the company’s health care system of Yakutia. The project «RNG to medics» took first place in the own waste, but also for the needs of the Mirninsky district. «Social and Environmental Initiative» category of the All-Russian MediaTek Award. 12 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 13
Key financial indicators Key production results in 2020 in 2020
rub 24.48 bil ($ 330.82 mil) rub 8.34 bil ($ 112.71 mil) 132 wells 33 wells proceeds from sales cash flow from total drilled (as of 01.01.2021) drilled in 2020 operating activities
1 060 mil. t. rub 0.22 bil ($ 3 mil) rub 6.49 bil ($ 87.50 mil) oil produced in 2020 net profit cash flow from investment activities
Taxes Payments under contracts and mandatory in favour of state-controlled payments companies
rub 4.74 bil ($ 66.22 mil) rub 4.03 bil ($ 55.55 mil) paid in 2020 paid in 2020
rub 5.4 bil ($ 84.55 mil) rub 3.7 bil ($ 56.8 mil) paid in 2019 paid in 2019
rub 3.45 bil ($ 55.76 mil) rub 2.4 bil ($ 39.13 mil) paid from 2014-2018 paid from 2014-2018 ENVIRONMENT 16 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 17
ENVIRONMENTAL PROTECTION
A careful attitude to the environment and responsible subsoil use are the key In this regard, the management of RNG JSC has undertaken the following areas of RNG JSC’s environmental programme. The company has approved a obligations: policy in the field of quality, labour protection, industrial and environmental - following the specified policy and ensure its explanation and safety. The main objectives of the document, in addition to the timely full- dissemination among the company’s staff; scale development of the Eastern blocks of the Srednebotuobinsky oil and - constantly improving and ensuring compliance of the integrated gas condensate field, were: management system with the requirements of international standards - ensuring a high production culture; and increasing its effectiveness; - providing safe working conditions; - ensuring compliance with the requirements of international, federal and - protecting the health and safety of workers; regional laws and standards applicable to the company’s activities; A careful attitude to the The responsible attitude of RNG JSC environment and responsible - minimising the negative impact on the environment. - providing the necessary resources for the implementation of this policy; to the issues of preserving subsoil use are the key areas of RNG - demonstrate commitment to ensuring the quality of work and services the ecological balance in the region is JSC’s environmental programme. performed, safe production of work and environmental safety; a priority task. To reduce To achieve these goals, the document outlined the following ways to the negative impact on the The company has approved - ensuring the identification, assessment and reduction of risks in the implement them: environment, the company regularly a policy in the field of quality, field of labour protection and industrial safety and reducing the level of conducts environmental monitoring labour protection, industrial and - effective functioning of the integrated management system in impact on the environment; at the Eastern blocks of the environmental safety. accordance with the requirements of international standards ISO 9001, Srednebotuobinskoye field according - encouraging staff to actively participate in activities to ensure the quality ISO 14001, OHSAS 18001; to the programme for 2016-2020 of work and services performed and to improve the level of labour approved by the CEO of RNG JSC, - performing works and providing services that fully meet the basic protection, industrial and environmental safety; in accordance with the Ministry requirements and expectations of each consumer; - creating conditions which include the development of motivation of Ecology, Nature Management and - performing works and services, ensuring labour protection, industrial methods for employees to take responsibility for the quality of work and Forestry of the Republic of Sakha (Yakutia). and environmental safety in accordance with the current regulatory services performed, their own safety, the safety of those around them legal acts of the Russian Federation, international legislation and internal and environmental protection; documents of the company; - ensuring the use of modern technologies and equipment which allow - establishing increased requirements in the field of quality, labour for improving the quality of work and the provision of services and to protection, industrial and environmental safety for contractors; increase the level of labour protection, industrial and environmental safety; - improving the professional level of employees, fostering a sense of responsibility for compliance with the requirements in the area of work - continuously improving the skills and competence of staff to perform quality and services, labour protection, industrial and environmental high-quality work without compromising health and environmental Photo safety; safety; Mirninsky District Countryside - requiring contractors to comply with the standards and norms of quality, - reducing the negative impact on the environment. Republic of Saha (Yakutia) labour protection, industrial and environmental safety as adopted by RNG JSC. The responsible attitude of RNG JSC to the issues of preserving the ecological balance in the region is a priority task. To reduce the negative impact on the Federal Budgetary Healthcare Institution “Centre for Hygiene and Epidemiology environment, the company regularly conducts environmental monitoring in the Republic of Sakha” at the Eastern blocks of the Srednebotuobinskoye field according to the programme for 2016-2020 approved by the CEO of RNG JSC, in accordance with the Ministry of Ecology, Nature Management and Forestry of the Republic of Sakha (Yakutia). The necessary additions to the environmental monitoring programme are made when the type of activity or technology of work is Federal State Budgetary Institution Centre changed, as well as when new facilities are introduced, or standards and laws for Laboratory Analysis and Technical Measurements in the Far Eastern Federal are changed. Monitoring is carried out with the support of Scientific and District - “CLATM (TsLATI) for the Republic of Sakha (Yakutia)” Production Association Applied Ecology of the North LLC. Specialised organisations are involved in monitoring: Research Institute of Applied Ecology of the North of the M. K. Ammosov NEFU, accredited laboratories: The Federal Budgetary Healthcare Institution «Centre for Hygiene and Epidemiology in the Republic of Sakha (Yakutia)», Federal Budgetary institution «Centre for Laboratory Analysis and Technical Measurements of the Republic of Sakha (Yakutia)». The specialists of RNG JSC also have their Institute of Applied Ecology own stationary chemo-analytical laboratory at their disposal. The laboratory M. K. Ammosov NEFU (SVFU) building is equipped with a hall for testing, as well as warehouses for storing reagents, backup equipment and materials necessary for analytical control. 18 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 19
THE EXTENT OF IMPACT ON THE ATMOSPHERE
RNG JSC annually carries out instrumental control of the release of harmful substances into the air, including from motor vehicles. The control is carried out by the accredited laboratory of the Federal Budgetary Healthcare Institution «Centre of Hygiene and Epidemiology of the Republic of Sakha (Yakutia)» using the devices «Autotest-01.02» and smoke meters «Meta-01MP». To reduce the level of air pollution by emissions from the combustion of associated petroleum gas (APG), the company is developing a project for the reverse injection of APG into the reservoir, with the prospect of further transportation and delivery to end users. The system of reverse injection of APG into the reservoir will also solve the problems of maintaining reservoir To reduce the level of air pollution pressure. The investments of RNG JSC in the project for the rational use by emissions from the combustion of associated petroleum gas at the field will amount to 3.8 billion roubles of associated petroleum gas (APG), ($ 51.36 mil). the company is developing a project for the reverse injection of APG into The project involves installation of a compressor station for compressing APG the reservoir, with the prospect with a pressure of up to 250 atm., arrangement of gas injection wells and construction of high-pressure gas pipelines to provide APG transportation to of further transportation and wells with a total length of more than 27 km. The completion of the complex delivery to end users. of facilities for the reverse injection of APG into the reservoir is planned for the end of 2021 and construction of the station will begin in the summer.
Throughout 2020, RNG JSC ecologists carried out the following measures regarding atmospheric air protection: - laboratory and instrumental control of polluting emissions; Photos - vehicle inspection for compliance with the standards for toxicity and 1. Recultivation process smoke levels. 2. 3D model of the reverse gas injection project at the RNG JSC field in Yakutia
1
Ensuring the safety Environmental monitoring is carried out in accordance with the Regulations of the environment and production on Industrial Environmental Control of RNG JSC in the field of industrial operations is a priority safety, labour protection and the environment in the following areas: in the activities of RNG JSC. - waste management of production and consumption; The company complies with all industrial safety standards and - atmospheric air protection; takes care of the ecology of the - compliance with licensing requirements; Republic of Sakha (Yakutia), ensuring that natural resources are - water supply and sanitation; used carefully, and environmental - emergency purposes in places where waste accumulates. legislation and environmental standards are strictly observed. Ensuring the safety of the environment and production operations is a priority in the activities of RNG JSC. The company complies with all industrial safety standards and takes care of the ecology of the Republic of Sakha (Yakutia), ensuring that natural resources are used carefully, and environmental legislation and environmental standards are strictly observed. Significant funds are allocated annually for environmental activities in RNG JSC. Therefore, the costs of environmental protection in 2020 amounted to 25.5 million roubles, which is more than 2 times higher than costs in 2019. 2 20 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 21
THE EXTENT OF IMPACT ON WATER RESOURCES THE EXTENT OF IMPACT ON LAND RESOURCES AND BIODIVERSITY
For the company’s own production needs, in 2017, RNG JSC equipped a water intake pond with a practical volume of 500 thousand m3 in order to exclude the permanent intake of water from the Taas-Yurekh River for industrial needs. The water intake is designed in such a way that the supply of water volume for technological needs is provided by floodwaters that flow into the reservoir from the river through the sluice in the spring. The bucket-accumulator provides an uninterrupted supply For the company’s own production needs, of water to the reservoir pressure maintenance system of RNG JSC does everything possible in 2017, RNG JSC equipped a water intake pond the K-1, K-2, K-3 well pads of the Eastern blocks of the SB not only to prevent a potential 3 with a practical volume of 500 thousand m OGCF throughout the year. Its presence contributes to threat to nature, but also to in order to exclude the permanent intake eliminating the threat of river pollution. maintain the environmental safety of water from the Taas-Yurekh River for industrial 2 of the region. needs. The water intake structure is designed The main source of water intake for RNG JSC is surface water The main condition for the functioning of the oil and gas industry in the in such a way that the supply of water volume for bodies. The volume of water discharge to surface water bodies in 2020 amounted to 6.57 thousand m3, unchanged modern world is a responsible attitude to the environment. RNG JSC does technological needs is provided by flood waters everything possible not only to prevent a potential threat to nature, but that flow into the reservoir from the river through compared to 2019. The stability of the indicator is due to the presence of a discipline in terms of rational use of water also to maintain the environmental safety of the region. The company uses the sluice in the spring. a responsible approach to land exploitation and reclamation and the impact resources. on biodiversity. When recultivating degraded land at the technical stage, mulching measures are carried out. The mulching technique is carried out by German company AHWI GmbH. The technology of mulching is used everywhere, since the method has a favourable effect on the soil and flora: - water retention in the soil; - reducing the number of weeds; - preventing overheating the soil in summer and freezing in winter; - preventing soil erosion; - preventing the formation of crusts on the soil, which improves the absorption of water into the soil; - preserving the looseness of the soil; - supplying plants with oxygen as mulched plants form more adventive roots.
Volume of land reclamation, ha
Indicators 2018 2019 2020 Volume of land reclamation 105.08 24.85 612.27
612.3
105.1 Photos 24.9 1. Water intake pond with a practical volume of 500 th. m3 2. Yakutia countryside 2018 2019 2020 1 22 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 23
At the suggestion of RNG JSC, the Institute of Biological Problems of the Cryolite Zone of the Siberian Branch of the Russian Academy of Sciences (SB RAS) conducted route studies and assessment of soil cover violations. The results of the research showed that the soils on the territory of the Eastern blocks of the Srednebotuobinsky OGCF are clean according to sanitary- microbiological, sanitary-parasitological and radiological indicators. RNG JSC, in cooperation with the SB RAS, will continue monitoring the soil to control possible anthropogenic impact. Also, at the initiative of RNG JSC, the Institute of Biological Problems of the RNG JSC is actively engaged Cryolite Zone of the SB RAS conducted a study of the territory of more than RNG JSC supports the nature in the conservation of land resources 1000 hectares in order to determine the state of the terrestrial animal world. reserve «Living Diamonds and conducts a variety of activities The study assessed the degree of influence of construction and production of Yakutia», helping to create aimed at preserving the biodiversity facilities on it, as well as increasing the availability of forests adjacent to the conditions in which animals will of the natural environment. territory of the projected objects. The specialists applied the methodology behave as in a normal environment. of winter route registration (WRR) with the registration of all fresh tracks and The nature reserve is arranged near linear routes of animals. During the summer period, birds, including those the city of Mirny in order to promote listed in the Red Book, large ungulates and bears are observed. the issues of nature protection and During the monitoring of vegetation cover, RNG JSC ecologists compile increase the ecological culture complete geobotanical descriptions of vegetation on the routes. They are of the population. carried out on trial areas, the choice of the size of which depends on the specifics of vegetation. The geobotanical description of vegetation includes all types of flora found in the sample area (the floral composition of the phytocenosis): 2 - tree layer of forests - composition, proximity, height, diameter, regrowth; RNG JSC sponsored the «Forest Forum», participation in which became one - shrub layer - composition, proximity, height; of the opportunities to ensure a favourable future for forests in the region. - grass-shrub layer – the total projective cover of the forest as a percentage, During the forum, issues of forest safety, prospects for the introduction of species composition, the projective cover of each species in points on a modern technologies at all stages of forest management, as well as preparing five-point scale (according to Mirkin); proposals for changes in forest legislation were discussed. - moss-lichen cover – the projective cover in percentages, composition, the The company takes care of the aquatic bioresources of Yakutia. In 2018-2020, projective cover of each species in aspects. RNG JSC ecologists released more than one million salmon fry into the rivers The degradation of vegetation cover is determined by such indicators as of Yakutia. They were grown in the laboratory at the Chernyshevsky Fish changes in the species composition of vegetation, productivity and decrease Hatchery. The fry were released into a tributary of the Vilyuy water reservoir, in the area of forest stands. the Aannaakh River, which flows through the territory of the Mirninsky district. According to the results of research by scientists of the All-Russian Scientific Research Institute of Fisheries and Oceanography, it is the Vilyuy water reservoir and its tributaries which have the necessary food base for salmon fish, the necessary temperature regime and all other conditions for survival and reproduction. In 2021, the company’s ecologists plan to release more than 200 thousand fry, and starting from 2022, more than 180 thousand fry will be released annually. This initiative contributes to the maintenance of biological diversity in the rivers of the region. RNG JSC supports the nature reserve «Living Diamonds of Yakutia», helping to create conditions in which animals will behave as in a normal environment. The nature reserve is arranged near the city of Mirny in order to promote the issues of nature protection and increase the ecological awareness of the local people. The reserve contains musk oxen, red deer, spotted deer, forest bison, roe deer and many other species of animals. Photos Hunting and fishing are prohibited on the territory of the Eastern blocks of 1. Yakutia countryside 1 the Srednebotuobinskoye field. 2. Release of young fry 24 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 25
WASTE MANAGEMENT LEVEL OF ENVIRONMENTAL OPPORTUNITIES
RNG JSC pays serious attention to the use of high-tech industry developments in the field of automated production management, the organisation of maximum effective infrastructure and the introduction of modern innovative and digital technologies. This ultimately leads to a reduction in the impact on the environment and environmental safety of the company’s activities.
Implementing seismic exploration technology A seismic survey party was created in 2019 on the base of Syuldyukar In 2020, a modern landfill for Geological Exploration LLC, which belongs to Eastsib Holding together with Modern geophysical equipment the disposal of solid household RNG JSC. The company uses five new NOMAD-65 vibration units in the latest is one of the most complex high - waste was introduced on the modification from the recognised international manufacturer of seismic precision devices. The seismic survey territory of the field, which meets all equipment, the French company Sercel. Currently, the company has modern party is equipped with everything the necessary environmental and seismic development telemetry systems Sersel 508 XT, NOMAD - 65 NEO necessary for the comfortable work sanitary requirements. 1 vibration sources and a set of GPS Trimble R8 GNSS topographic equipment. of specialists and is provided with modern geophysical laboratories In November 2020, RNG JSC opened a landfill for the disposal of municipal Vibration is a much more effective method of geological exploration for adjusting, repairing and testing solid waste (MSW) on the territory of the Eastern Blocks of the compared to traditional explosive and impulsive technologies used in equipment and machinery. Srednebotuobinskoye field. Thermal neutralisation of municipal solid and Eastern Siberia. Explosive technologies are unsafe, costly and unecological. industrial waste will be carried out at the new landfill during the operation of Impulsive technologies do not always allow specialists to obtain sufficient the oil and gas condensate field. information about the geological structure of the site. The area of the facility occupies 2.29 hectares, its capacity is 10 thousand The company’s specialists designed and carried out all the necessary tons per year, and service life is 25 years. The landfill consists of areas for the measures to prepare the division for conducting seismic exploration. placement and incineration of waste in a special incinerator installation, as Modern geophysical equipment is one of the most complex high - precision well as an agricultural zone. Reliable emission filtration systems and especially devices. The seismic survey party is equipped with everything necessary for the design of waste storage sites allow for minimising the negative impact on the comfortable work of specialists and is provided with modern geophysical the atmosphere and landscape near the landfill. laboratories for adjusting, repairing and testing equipment and machinery. An important feature of the technology used is that during waste processing, The seismic survey party is ready to perform the assigned geological tasks at waste is crushed and incinerated. After the smoke gets under the steam jets, a high professional level (2D, 3D).
the combustion products remain in the installation, and only steam enters the The staff have received necessary skills of working with the equipment and Photos air. Therefore, the negative impact on the environment is eliminated. maintaining the data registration system both in France and Russian divisions 1. Opening the landfill site The new landfill is intended not only for the disposal of the company’s own of Sercel. The number employed in the seismic survey party is 139 people. 2. A specialist of the seismic party monitors the measurements waste, but also for the needs of the Mirninsky district. This is the first modern landfill which meets all environmental standards in the Mirninsky district. While designing and conducting engineering and survey work, the specialists of RNG JSC considered all the necessary environmental and sanitary requirements. The construction was carried out according to the latest standards: certified equipment was purchased from proven partners, and fire and emergency safety was provided. The solid waste landfill on the Eastern blocks of the Srednebotuobinskoye field, where RNG JSC produces oil, meets all the necessary environmental and sanitary requirements.
When handling waste, RNG JSC is guided by the following documents: - permits/passports for the disposal of waste of hazard classes I-IV; - licence for the management of hazardous waste from 11.08.2016 № 000266; - approved standards of the WGSLP (waste generation standards and limits on their placement) dated 16.11.2018 No. 18/155 (valid until 15.11.2023); - registration documents of sludge barns for well pads No. 1-7 of the company in the state register of waste disposal facilities. 2 26 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 27
Geophysical survey of wells by logging method Before laying such wells, specialists analyse information from neighbouring wells (pilot, exploration), create a geological model and predict the depth In 2020, several key geological exploration projects are being implemented of the reservoir roof, the level of gas and oil - water contact, which will at the fields of RNG JSC together with Schlumberger, including the additional later become anchor points. During drilling, using the LWD technology, study of horizontal wells with a unique Pulsar device based on the CO logging the geological service continuously monitors the well drilling for 24 hours, method. A project on processing and interpreting microseismic monitoring evaluates deviations from the anchor points according to the original model data has been launched in partnership with Baker Hughes. Remote data and promptly transmits commands to the drilling rig with adjustments in collection is also used in drilling projects. During drilling with the help of LWD the well trajectory. Even in the case when the definition of HOC is not exact, logging technology, the geological service conducts continuous monitoring the level of VOC is determined with a high degree of confidence by reducing Specialists of RNG JSC successfully of the well drilling and promptly transmits commands to the drilling rig with the resistances of the resistivity meter sensor below 100 m. This decrease is a Two laboratories that monitor applied a new well design corrections along the trajectory. signal for the horizontal section of the well to be flattened 2-3 meters above the quality of oil and diesel fuel in the form of a hook during the depth of the VOC. operate at the EB SB OGCF. the development of the Eastern blocks If the specialists did not determine the level of gas-oil contact during drilling, of the Srednebotuobinskoye field. Fishbone Oil Recovery Enhancement Technology the well may be ineffective due to the incorrect drilling depth. To avoid this, other companies drill an additional pilot (trial) trunk, which is up to 7 days of RNG JSC uses advanced technology to increase oil recovery. The company work and 250 metres of drilling. successfully implements drilling of horizontal wells using the fishbone method. This technology involves drilling multi-barrel (multi-hole) wells with a special trajectory, in which numerous segments branch off from a Chemo-analytical laboratories single horizontal shaft in different directions, hence the term “fish bone”. Two chemo-analytical laboratories operate at the Eastern Blocks of the SB The uniqueness of the technology is that the direction of horizontal wells OGCF, which determine the parameters and control the quality of oil and significantly increases the coverage of oil-saturated areas of the reservoir diesel fuel. To control the quality of diesel fuel, the following indicators are compared to a traditional horizontal well. Also, a fishbone requires less determined: drilling work than a horizontal well. - density; This modern technology allows to increase the flow rate of hydrocarbons - sulphur content; from the productive section of the well. This is especially important for - kinematic viscosity; RNG JSC, which relies on efficient and responsible subsoil use. Fishbone - maximum filterability temperature; allows for increasing the productivity of the well by better connecting the - solidification temperature; Photo reservoir to its trunk, which significantly reduces the risk of contamination - fractional composition. Laboratory for Oil Quality Control of groundwater, reducing the amount of work on the disposal of technical fluid. By the end of 2020, RNG JSC completed the construction of six multi-hole horizontal wells using this method with a design of three to eight horizontal wells.
Technology of well drilling in the form of a hook Specialists of RNG JSC successfully applied a new well design in the form of a hook during the development of the Eastern blocks of the Srednebotuobinskoye field. This allows for bypassing the aquifer and thereby avoiding flooding the oil reservoir. A hook is a horizontally inclined well running along a complex hook-shaped trajectory. The trajectory is set in such a way that the well is drilled first downward to open and refine the formation section, determining the best reservoir layers and their angles of occurrence, then cross-section the horizontal oil contact (HOC) and vertical oil contact (VOC), followed by flattening the horizontal part of the trunk. This allows for reducing the error in the absolute depth, avoiding unwanted convergence with the gas cap and correctly positioning the part of the trunk that will be used for oil production. 28 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 29
When monitoring the oil quality, the following indicators are determined: Testing laboratory - density; and a non-destructive testing laboratory - water content; The company carries out laboratory quality control of the work performed - mechanical impurities content; at all stages of production, starting with engineering research and ending - chloride salt content; with the acceptance of the completed construction and installation works. The testing laboratory consists of five independently functioning laboratory - sulphur content; divisions: soil, concrete, asphalt, engineering and survey, and a construction - saturated vapour pressure; materials laboratory. All divisions are equipped with modern equipment - paraffin content; and highly qualified staff, with the possibility of conducting complex tests The quality of commercial oil - fractional composition; of soils, water, natural and building materials (sand, dolerite, sand and gravel The company carries out laboratory is monitored throughout the entire quality control of the performed - kinematic viscosity; mixture, crushed stone-sand-gravel mixture, concrete mixtures, mortars, preparation process and during works at all stages of production, - organochlorine compounds content; cements, mineral powder, petroleum bitumen, emulsions, asphalt concrete acceptance operations. and organo-mineral mixtures). The field of activity of the testing laboratory from engineering surveys to - hydrogen sulphide, methanethiol content. includes 383 methods of measurement and testing. acceptance of the completed The quality of commercial oil is monitored throughout the entire preparation construction and installation works. The non-destructive testing laboratory has a licence to conduct tests by process and during acceptance operations. special methods. These works timely identify unacceptable defects in structures with welded joints. The work of the non-destructive testing laboratory allows the prevention of accidents and ensuring the safe operation of building structures, pipelines, boiler inspection facilities, oil and petroleum products tanks, equipment for explosion-and fire-hazardous and chemically hazardous industries, gas supply systems, and equipment for the oil and gas industry. The laboratory of non-destructive testing uses the following methods of quality control of welding works in its activities: visual and measuring control (VMC), radiographic control (RC), ultrasonic control (USC), capillary and leak detection (by permeating mixtures), and electrical work. A quality management system has been implemented and is functioning in all laboratories and their divisions. The transition to the new GOST (Russian national standard) ISO/IEC 17025-2019 standard has been implemented and a risk and opportunity management system has also been implemented. The management of records, archives, equipment, and intra-laboratory control is attributed to the process approach. The obtained results of laboratory studies and tests ensure maximum accuracy.
Photo Determining the quality of commercial oil
The laboratories use more than 150 units of testing and auxiliary equipment, including: - an automatic device for determining the fractional composition produced by Herzog, Germany; - an automatic device for determining the fractional composition produced by Orbis, Netherlands; - an automatic device for determining the maximum temperature of filterability of diesel fuel by ISL, France; - analysers of sulphur content in oil and petroleum products by Horiba, Japan; - chromatographic complexes for determining the composition of oil and gas by Chromatek, Russia; - an x-ray fluorescence wave dispersion analyser for determining the mass Photo fraction of chlorine by the company SPEKTRON, Russia. Determining the grain composition of dolerite 30 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 31
Automated Process Control System (APCS) The system includes a set of programmes/applications with the help RNG JSC has acquired a process control and emergency protection system of which geologists, technologists, chemical and analytical laboratory manufactured by the American company Emerson. The system allows operators interact to evaluate and control the technological parameters of for a safer and more efficient production process. The automation system well operations, including preventing emergency mode. is designed for centralised management of the technological process of OIS Production tracks data from operational oil, gas and other wells online by extraction, preparation, product storage and transport, support systems reading information from the Controlwave APCS sensors by the international for monitoring the fire and gas situation, as well as effective protection and company Emerson. At the same time, the company has increased the number timely stopping of the process in case of an accident and its localisation of highly qualified engineers and specialists who make decisions based on according to specified algorithms. RNG JSC pays serious attention the analysis of incoming data. The Eldoc system is also to the use of high-tech being implemented in order The technology consists of various independent systems: industry developments in the to digitalise, catalogue and field of automated production - distributed control system (DCS); Communication visualise geological documents. management (seismic exploration - emergency protection system (EPS); It includes a set of programmes/ technology, geophysical well - automatic fire and gas safety system (AFGSS); RNG Energy LLC is implementing a project to lay a fibre-optic communication applications for the work of logging, Fishbone oil recovery - telemechanic systems. line (FOC) from the territory of the Eastern blocks to the Mirny-Lensk highway specialists in the departments of technology, well drilling technology with subsequent connection to the fibre-optic network of FGC UES PJSC, geology, development, drilling. in the form of a hook). The The distributed control system is an automated control of technological which will allow for the connection of the Moscow, Mirny and other offices The programmes allow for the introduction of modern innovative facilities. The DCS is also designed to protect the health and safety of of the company with the field into one fibre-optic network and automating quick receipt of research results, and digital technologies (DCS, EPS, production staff, technological equipment, and the environment by reports from the field in terms of AFGSS) ultimately leads the receipt of information from drilling rigs. detecting and preventing leaks of hydrocarbon raw materials at an early production, and drilling reports. to a reduction in the impact stage, as well as preventative measures in case of explosions. This communication line will not only provide high-speed digital on the environment communication and Internet access to production facilities and shift and environmental safety The emergency protection system ensures the safety of the technological of the company’s activities. process and equipment in order to protect personnel, equipment, material settlements but will also become a backup communication line for the values and the environment. The EPS is completely independent of the village of Tas-Yuryakh, where the construction of the FOC of Rostelecom distributed control system and stopping the latter will not lead to the failure PJSC is currently being completed. of this safety-enhancing system. The automatic fire and gas safety system is a specialised certified system Introduction of electronic document management designed for a timely detection of fire and gas hazards, light and sound notification for the staff of the central oil collection point (CPF), and automatic RNG JSC has implemented the electronic document management system control of the corresponding fire extinguishing installations. «1C: Document management». Bills, invoices, orders, financial reports, The telemechanic system is designed for monitoring and managing field contracts, work applications, procurement of goods and services, and objects (single wells, crane platforms, nodes for receiving and launching warehouse accounting are all processes carried out through electronic treatment plants for data exchange), remote auxiliary objects, and objects of systems. external product transport systems (oil, gas, condensate). The Eldoc system is also being implemented in order to digitalise, catalog and visualise geological documents. It includes a set of programmes/applications for the specialists’ work in the departments of geology, development, drilling. Operational production accounting systems OIS Production The programmes allow for the quick receipt of research results, reports from The company’s employees have launched the OIS Production operational the field in terms of production, and drilling reports. accounting system and the unified information processing system (SAP). Both systems, developed by Russian specialists of the company ASUproekt, Daily, the system replenishes data with the results of well drilling, core studies, allow monitoring and optimising dozens of processes and operations, such deep oil and gas samples, seismic surveys, scientific research, magnetic as the development and operation of facilities, accounting and control of oil exploration, gravity exploration, and geological and hydrodynamic models. production, and monitoring of reservoir pressure maintenance. In its activities, RNG JSC is guided by the principles of compliance with current The OIS Production system was created for the purpose of maintaining industry trends and striving for technological leadership in its segment. operational information about the state of wells, processing oilfield That is why the company develops, adapts and implements advanced information for accounting oil, liquid, gas production, pumping working technologies. Modernization of production contributes to productive and agents into layers. safe work. 32 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 33
SOCIAL POLICY 34 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 35
HUMAN RESOURCE POLICY
When drafting the staff and social policies, RNG JSC complies with the The structure of RNG JSC staff by The structure of RNG JSC requirements of the current legislation of the Russian Federation. category and gender, % staff by category, % In 2020, the average number of employees of the Eastsib Holding group amounted to 2,746 people and the salary fund amounted to 3.62 billion Indicators 2018 2019 2020 16 26 roubles ($49 mil). The total number of company employees in 2020 was 1,565 15 The percentage of managers people. Most of the employees (83 %) are employed directly in the Republic 15.8 15.4 16.3 25 of Sakha (Yakutia), where the main production facilities of the company are from the total number of employees located. 2019 of these: the percentage of female managers 9.3 12.1 12.7 The structure of RNG JSC’s employees by category in 2020 did not undergo RNG JSC pays special attention significant changes. More than half were labourers. A significant share of The percentage of specialists to the formation of a staff reserve 23.6 25.5 25.5 59 working specialties (58.2 %), determines the company’s increased staff from the total number of employees from local residents, including 2020 turnover rate (20 %). 58 graduates of educational of these: the percentage of female specialists 27.7 33.0 35.9 institutions, which allows not RNG JSC provides competitive remuneration to its employees. only to provide the company The company’s salary expenses in the period 2018-2020 amounted to about The share of workers labourers 60.6 59.1 58.2 specialists with the necessary resources, but 2 billion roubles ($ 27 mil) annually. In 2020, the average monthly salary of from the total number of employees also to consolidate the progress employees reached 117 thousand roubles. The main part of payments to managers of the oil and gas industry in the rotational personnel is made during the period of work on a shift. Average of these: the proportion of female workers 6.7 6.9 7.1 region. In turn, the development wages are 190 thousand rubles. per working month. of the industry has a beneficial effect on the growth of the Considering the specifics of the activities of RNG JSC, which involves the use region’s infrastructure, and the of mainly male labour, it is necessary to note a high proportion of women in opportunities of its population. the total workforce of the company (15 % in 2020). It should also be noted The percentage of women and men by categories of the specific growth of women in all categories of employees from 2018-2020. employees of RNG JSC in 2020, % More than a third of the company’s specialists are women (35.9 %).
The structure of the workforce of RNG JSC by age in 2018-2020 has not Managers 12.7 87.3 undergone major changes. The average age of employees was 39 years.
Specialists 35.9 64.1 General indicators on the staff structure of RNG JSC Labourers 7.1 92.9 Indicators 2018 2019 2020 women men
Total number of employees, people, including: 1360 1499 1565
Labourers 824 886 864
Specialists 321 382 417
Managers 215 231 284
Percentage of women 12 14 15 in the total number of staff, %
Staff turnover rate, % 12 20 20
Average monthly salary of employees, th. rub. 106 116 117 Photo APCS specialist 36 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 37
EMPLOYEE SOCIAL SECURITY
RNG JSC strives to create a comfortable working environment, investing in human capital and is guided by the principles of equality, openness and fairness. Investments in human capital create the basis for sustainable business development, improving the quality of life of the company’s employees and residents of the region. The main document regulating the processes of staff management, social security and additional support for the company’s employees is the Regulation on Social Guarantees, Benefits and Compensations of RNG JSC dated 20.10.2017. The Regulation is drawn up in accordance with Chapter The company has developed 50 of the Labour Code of the Russian Federation and the Law of the Russian a Regulation on social guarantees, Federation No. 4520-1 “On State Guarantees and Compensation for Persons benefits and compensations, Working and Living in the Regions of the Far North and Equivalent Areas”. according to which social security According to the Regulation, the company provides employees with the and additional support following main types of social guarantees, benefits and compensation: for employees are regulated. The document is drawn up - annual paid leave; in accordance with the Labour - additional leave without pay; Code of the Russian Federation and - a 36-hour reduced working week is established for women working in the Law of the Russian Federation the regions of the Far North and Equivalent Areas; “On State Guarantees and Compensation for Persons Working - payment of temporary disability benefits; and Living in the Far North and RNG JSC employees are Structure of RNG JSC employees by age groups, % - payment of financial assistance; Equivalent Areas”. the main value of the company, - rented homes for employees in connection with production needs; since first of all, the achievement Indicators 2018 2019 2020 of operational efficiency and - voluntary insurance of employees; strategic goals depends on them. To 35 years 33 31 27 - milk and therapeutic and prophylactic nutrition; Safe working conditions are created From 35 to 45 years 38 40 41 at RNG JSC, which contribute to the - compensation of expenses related to moving from the regions of the Far North and areas equated to them; professional growth of employees. From 45 to pension age 27 27 30 - reimbursement for expenses for the cost of train and baggage return Pensioners 2 2 2 transportation to the holiday location.
In 2019, RNG JSC signed an agreement with the Republican State Committee 2020 27 41 30 2 for Employment of the population on cooperation in the implementation of the priority project of Yakutia «Local staff in industry». The percentage of the local population working in the company is about 3 % of the total number 2019 31 40 27 2 of employees. In 2019, RNG JSC started implementing a personell motivation system, 2018 33 38 27 2 within the framework of which a project was launched to pay an annual to 35 years from 35 to 45 years remuneration based on the results of achieving key performance indicators from 45 to pension age pensioners established by the business plan.
The company provides a social package, which includes: - payment of one-time financial assistance in various life situations; РRNG JSC employees are the main value of the company, since first of all, - voluntary health insurance for certain categories of employees; the achievement of operational efficiency and strategic goals depends on - annual medicals which are paid for by the company; them. Safe working conditions are created at RNG JSC, which contribute to the professional growth of employees. The company guarantees the - compensations aimed at protecting health and getting a full recovery: protection of employees’ rights, adheres to the principles of equality and payment for return travel to the holiday location to employees living in the non-discrimination, strives to attract talented and competent specialists, regions of the Far North and Equivalent Areas;
Photo implements staff motivation programmes, social programs, youth policy - charter flights for the delivery of shift workers to the Republic of Sakha RNG JSC employees in Mirny office projects, and develops a corporate training system. (Yakutia). 38 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 39
LABOUR PROTECTION AND INDUSTRIAL SAFETY
The company strives to create the most comfortable working conditions. The The oil and gas industry is one of the most injury-prone sectors of the support base of the Eastern blocks of the SB OGCF contains canteens, a gym, economy, therefore, the issues of preserving the health and safety of a professional laundry service, a sauna and its own bakery. A separate sector employees in the course of their work, as well as employees of contract of employees is engaged in maintaining a high level of living conditions. organisations performing work at the company’s facilities, are a priority area of sustainable development of RNG JSC. The main strategic goal is to achieve The company purchases food products directly from manufacturers and delivers them to the EB SB OGCF. The company buys fresh products with zero accidents in RNG JSC. limited shelf life from local producers in the amount of more than 3 million The main principles of the company’s work are to ensure the safety of work roubles per month on a monthly basis. and a careful attitude to nature when implementing industrial projects. To ensure favourable living Meals are organised around the particular climatic conditions: the standards Environmental protection activities are managed in accordance with RNG JSC sets increased conditions, a shift camp with a bath of nutritional value in the northern part of the country are high. The daily the requirements of international standards. The company operates in requirements for employees and and laundry complex was built on the subordinate organisations in the calorie requirement in the Far North is 3450 kcal per day. accordance with the current regulatory legal acts of the Russian Federation, territory of the enterprise. international standards and internal documents. field of quality, labour protection, The shift residential complex of the The company has created seven food outlets. In addition to the large canteen, industrial and environmental field support base is built based on there are food points in the shift camps near the settlements of Novy, Svetly, RNG JSC sets increased requirements for employees and subordinate safety, and pays special attention to prefab buildings/modules and is Suntar, as well as near the Yuzhno-Syuldyukarsky site on the support base organisations in the field of quality, labour protection, industrial and improving the professional level of employees. intended for living and providing and the canteen at the CPF. About 900 people eat in the canteens every day. environmental safety, and pays special attention to improving the sanitary and household needs of staff professional level of employees. Therefore, a Plan for the Prevention and servicing the field. Cooks work according to instructions developed by the Research Institute of Elimination of Emergency Oil and petroleum Product Spills on the territory Public Catering. All technological maps are created in the programme “1C: of the Eastern blocks of the Srednebotuobinskoye field was developed and Food Processing Plant“. A monthly menu plan is formed, which indicates the approved. required number of servings of each dish per month. Contracts have been signed with specialised contractors to maintain RNG The company strictly monitors the quality of the supplied food products JSC’s hazardous production facilities where field exploration, oil production, with the help of the Mercury software. The technologist at the field performs processing, transportation, storage and use of petroleum and petroleum input control, checks the integrity of the packaging and the availability of products are carried out, as well as maintaining open gas and oil fountains certificates of compliance. In each dining room, a grading journal is kept, during the construction and well overhaul. in which the paramedic gives an organoleptic assessment of all dishes after tasting before the general meal. The main regulatory document in the field of labour protection and industrial safety (LP and IS) in the company is the «Regulation on the organization of There is also a water treatment plant with a new antibacterial facility called industrial control over compliance with industrial safety requirements at Photo “Atlantus” with a capacity of 100 m3 per day at the field. EB SB OGCF Field Support Base hazardous production facilities of RNG JSC», approved by the CEO.
There are also several internal documents in the field of LP and IS: - on the implementation of production control (in terms of LP and IS); - on the organisation of production control during the operation of lifting facilities; - on the organisation of technical supervision over the safe operation of pressure vessels; - job descriptions and production instructions of the company’s staff in the field of LP and IS.
The company has a separate structural unit for dealing with issues of labour protection and industrial safety. The department of industrial safety and labour protection (IS and LP) consists of 15 people, including 6 paramedics. The direct duties of the department’s specialists include: organisation and implementation of control over compliance with all production and environmental standards, interaction with supervisory authorities and maintaining documentation. 40 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 41
The team has repeatedly participated in extinguishing forest fires on the territory of the Mirninsky district, providing assistance to the administration of the Mirninsky district and forestry. RNG JSC sent specialists and equipment to assist in the fight against forest fires near the villages of Suntar, Tas- Yuryakh and other settlements. The Department of Forest Relations of the Republic of Sakha (Yakutia) is grateful to the team for providing assistance in extinguishing forest fires. On the fire station OPF-100 base, at the end of 2020, stations for maintenance (repair, recharging, testing, painting of cylinders) of fire extinguishers were put into operation. A complete set of equipment for the maintenance of Specialists at least three times primary fire extinguishing means has been purchased, and installation and a month conduct training sessions commissioning of the equipment is underway. on extinguishing conditional fires at RNG JSC facilities. Quarterly Specialists at least three times a month conduct training sessions on training sessions are held to extinguishing conditional fires at RNG JSC facilities. Quarterly training evacuate people from buildings sessions are held to evacuate people from buildings at night. at night. The company plans to train specialists of a professional fire brigade to obtain a licence from the EMERCOM of Russia under the direction «Installation, maintenance and repair of primary fire extinguishing equipment». The Photo The issues of fire safety, civil defence and emergencies in the company are licence will allow the fire safety department to carry out full maintenance of RNG JSC fire service handled by the department of industrial safety, civil defence and emergency its own primary fire extinguishing equipment. services including a voluntary fire brigade, which was established in 2015. RNG JSC’s fire service is only called voluntary but is a team of professionals The company has signed contracts with professional emergency rescue with specialised education and work experience in the EMERCOM of Russia. companies for the maintenance of hazardous production facilities. The fire brigade of RNG JSC Currently, the staff of the fire brigade consists of 16 people, including the regularly cooperates with head of the department, masters of the gas and smoke protection service, Professional emergency rescue units the Ministry of Emergency heads of the guard, firefighters, and 6th category drivers. The team is divided Situations of Russia and aids in into 2 fire stations: at the CPF and OPF-100. extinguishing forest fires. The fire service of RNG JSC has separate buildings on the FSB. There is one fire In addition, the company’s fire tanker in each department in the building. The fire equipment is equipped brigade participates free of charge with standard fire-technical equipment. Each machine is constantly filled The name of the emergency in the elimination of fires in the Area rescue unit which concluded with 8000 litres of water and 450 litres of foaming agent. settlements of the Mirninsky district. a contract with RNG JSC The fire protection staff have all the necessary protective equipment: special suits, helmets, gloves and shoes. Also, to protect the staff of the fire department, all the necessary equipment was purchased, including breathing apparatus for working in smoke environments. Mobile boxes Liquidation of emergency oil In these areas, contracts have equipped with fire-fighting equipment were purchased to protect forest product spills at oil production, been signed with the emergency leased areas. The supply of a foaming agent for foam fire extinguishing of storage and treatment facilities rescue unit of ASF Security steel tanks RVS-5000 at the central oil collection point is three-fold. and a contract for the maintenance Service LLC, which is constantly of gas distribution and gas ready for the localisation Every year, RNG JSC’s deposits are threatened by forest fires. To ensure full- consumption networks by the gas and liquidation of accidents at oil fledged protection from forest fires, the issue of purchasing tracked fire rescue service and gas production, and storage equipment for the delivery of fire extinguishing equipment to difficult-to- and treatment facilities reach areas is being considered. RNG JSC regularly cooperates with the Ministry of Emergency Situations of Russia and aids in extinguishing forest fires. In addition, the company’s Elimination of gas and oil leaks and In this area, an agreement has fire brigade participates free of charge in the elimination of fires in the spills been signed with the emergency settlements of the Mirninsky district. During the special fire-fighting regime rescue unit of Upstream Service introduced by the administration of the Mirninsky and Lensky districts, the LLC, which is constantly ready to fire brigade conducts patrols of forest territories during the day and at night localise and eliminate accidents at and monitors fires. The company has purchased mobile block boxes with oil production facilities forest fire equipment designed to protect leased forest plots. From 2021, the fire brigade of RNG JSC is included in the schedule of trips of the Mirninsky garrison of fire protection. 42 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 43
Road traffic safety (RTS) is one of the key priorities in RNG JSC’s activities. In On the territory of the field, two medical rooms are equipped with a order to organise work on the prevention of accidents on the territory of the paramedic on duty 24 hours a day. The activity of a medical worker, in field, a road safety service has been established and operates continuously. addition to accounting for injuries and organising professional assistance for The main tasks of the service are to create a road safety system and prevent victims, is associated with pre-trip and post-trip medical examinations and road traffic accidents. The tasks of the service also include: examination of vehicle drivers for alcohol and drug intoxication. RNG JSC annually invests in the training of employees and pays for advanced - development, implementation of measures to ensure the trouble-free training courses on labour protection and industrial safety. operation of the company’s vehicles, and improving the professional skills of drivers; Various measures on labour protection, industrial and fire safety are carried out on a regular basis at RNG JSC. RNG JSC constantly improves - organisation of campaigning work in the area of road traffic safety; RNG JSC annually invests in the the qualifications of its own training of employees and pays for - control over the activities of other divisions related to ensuring road drivers and drivers of contracting Measures on labour protection, advanced training courses on labour organisations. The entire transport safety and effective use of vehicles; industrial and fire safety carried out at RNG JSC protection and industrial safety. fleet is equipped with a specialised - control over the release of technically serviceable vehicles equipped in Among the whole range of monitoring system which allows accordance with road traffic laws; Name Employees measures to prevent the occurrence drivers to receive information Documents of the measure Responsible about the driving process and what - admission to driving for drivers with sufficient qualifications; and cases of deterioration of the health of employees, occupational should be done to make it as safe as - survey of road conditions on routes; injuries and occupational diseases, possible. Instruction on labour Heads of structural Developed including through the management - organisation of pre-trip and other medical examinations of drivers, protection and industrial divisions and approved of occupational risks, a special control of the availability and accuracy of registration of travel and safety at the workplace: instructional place in RNG JSC is occupied by the commodity-transport documents; primary, repeated, programmes, including unscheduled fire safety instructions implementation by all employees, - control over the compliance of employees with the rules and norms of from working professions to senior Training and knowledge Heads of structural Developed labour protection, industrial and labour discipline, and internal labour management, of the basic rules of testing on labour protection divisions with the and approved training labour safety. regulations; by profession participation of programs - support of transportation of dangerous, bulky goods by specialised specialists of the IS and LP department rolling stock. Fire-technical minimum Head of the fire Programmes developed RNG JSC constantly improves the qualifications of its own drivers and drivers training for employees brigade guard and agreed upon in the of contracting organisations. The entire transport fleet is equipped with a responsible for fire safety State Department of the specialised monitoring system which allows drivers to receive information of facilities and production EMERCOM of Russia for centres the Republic of Sakha about the driving process and what should be done to make it as safe as Photo (Yakutia) for employees RNG JSC possible. A more effective travel control system is being implemented. All performing fire work at Traffic Safety Service this is done in order to reduce the number of road accidents. explosive and heat- hazardous objects Control over the training of Leading specialist Internal documents managers, specialists and of the IS and LP workers of the company department and contractors
Among the whole range of measures to prevent the occurrence and cases of deterioration of the health of employees, occupational injuries and occupational diseases, including through the management of occupational risks, a special place in RNG JSC is occupied by the implementation by all employees, from working professions to senior management, of the basic rules of labour safety. The basic rules of labour safety are a brief and clear instruction approved by the company for the safe performance of the most characteristic and dangerous types of work. A pocket brochure was handed to each employee. The rules are developed for certain types of work and conditions, which are selected based on the production experience of leading companies in the oil and gas industry, as well as based on an analysis of accidents, incidents, and emergencies which have occurred or were prevented at RNG JSC. 44 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 45
CONTRIBUTION TO REGIONAL DEVELOPMENT
In order to preserve the life and health of employees, the company has One of the key tasks of the company is to participate in the social, cultural and defined the following principles in the “Basic Rules”: economic development of the Republic of Sakha (Yakutia). The employees - distribution of the basic rules of work safety (corporate responsibility); act as experts in a number of educational projects. The company is in - it is the duty of every employee of the company and contractors to know constant contact with the leaders of tribal communities of indigenous small- and apply these basic rules (personal responsibility); numbered peoples of the Far North, and is the general sponsor of publishing projects dedicated to the nature and history of Yakutia, providing financial - ceasing work in case of non-compliance with the basic rules; support to residents of populated areas of the region. - immediate notification of dangerous situations.
RNG JSC annually invests funds The work on the application of the Basic Rules of Labour Safety in RNG Socio-economic projects Effective interaction of RNG JSC for training employees in labour JSC received a new impetus in 2019: additional training of employees was with regional authorities and the protection and industrial safety. carried out as part of the implementation of the rules and verification of the In April 2020, RNG JSC together with the company SyuldyukarNefteGaz local community is expressed The company’s strategic goal is to acquired knowledge. LLC, which is part of Eastsib Holding, delivered dolerite to the village of in the implementation of socio- Syuldyukar in the amount necessary to strengthen the soil around the local achieve zero injuries. Effective measures for labour protection and prevention of industrial injuries, economic, cultural, scientific and school building. With the arrival of the spring flood, this area is flooded. regularly carried out at RNG JSC, were the reason for the low level of injuries educational projects aimed The village of Syuldyukar is the capital of the Sadyn National Evenki Nasleg, at the enterprise. During the period 2018-2020, only one case of industrial at solving socially significant the only place in the Mirninsky district of the Republic of Sakha (Yakutia), injuries was recorded, resulting from a light mechanical impact. problems. The company pays where the indigenous small - numbered peoples of the Far North live. The special attention to cooperation population is 380 people. with the indigenous peoples of Industrial injuries by type of impact, number the North, maintaining a balance RNG pays special attention to the Tas-Yuryakh village, which is the closest between the implementation of settlement to the operated field. For the last three years, the village has been economic plans and the interests Area 2018 2019 2020 supplied with purified drinking water from the company’s own treatment of indigenous people, and the plants free of charge. preservation of their cultural heritage. Mechanical impact 0 1 0 Within the framework of agreements on socio-economic cooperation with the administration of the municipality Mirninsky district and the rural Thermal impact 0 0 0 settlement Botuobuyinsky Nasleg, work was carried out to restore and strengthen the road surface of the central Innokentiy Ievlev street and the square on Stepan Popov Street in the village of Tas-Yuryakh. Chemical impact 0 0 0 A column of 23 tipper trucks delivered 1000 m3 of fractional dolerite from the quarry of Mining and Processing Enterprise Yakut Dolerite LLC over two Electrical impact 0 0 0 days, which is located 60 km from the village. With the help of modern road equipment, the improvement of the trial sections of the road was carried out, Combined impact 0 0 0 which significantly improved the walking and transport accessibility of the secondary school, the house of culture, the memorial complex «Milestones of History» and the paramedic station. Total 0 1 0 Earlier, the ceremonial opening of the Friendship Bridge, a crossing over the Tas-Yurekh River, connecting the A331 Vilyuy federal highway and the licence area Eastern Blocks of the Srednebotuobinskoye oil and gas Industrial injuries by severity of the damage, number condensate field, took place. The construction of the bridge lasted for two years, and the entire complex of works was carried out at the expense of Area 2018 2019 2020 RNG JSC together with Vostsibspetsmontazh LLC. The bridge over the Tas- Yurekh River provided year-round access for the residents of the village of Tas-Yurekh to their ancestral and hunting grounds. Light injuries 0 1 0 Thanks to the support of RNG JSC, the construction of the first kindergarten, accommodating all the children of the village, has been completed in the Serious injuries 0 0 0 Tas-Yuryakh village. The company joined the construction during the crisis, promptly and without compensation providing the administration of the Fatal accidents 0 0 0 Mirninsky district with the necessary equipment and materials, which made it possible to complete the construction of the kindergarten. Work was also carried out on the filling of the territory adjacent to the kindergarten with Total 0 1 0 dolerite, and on the installation of a fence around the building. 46 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 47
In addition, assistance is being provided to residents of the village for waste Cultural, scientific and educational projects removal for disposal to the company’s solid waste landfill, which was put into operation in November 2020 on the territory of the Eastern blocks of RNG JSC takes an active role in the development of Yakutia. The company the Srednebotuobinskoye field. The new landfill is intended not only for the not only participates in major infrastructure projects in the region, but disposal of RNG JSC’s own waste, but also for the needs of the Mirninsky also provides financial support to cultural and educational projects and district. In the Mirninsky district, this is the first modern landfill which meets In October 2020, instead of a various festive events. all environmental standards. pontoon crossing over the Malaya As part of the programme to support the indigenous peoples of the North, Botuobuya River, a two-lane bridge In October 2020, instead of a pontoon crossing over the Malaya Botuobuya the company cooperates with the Society of Hunters and Fishermen. RNG was opened on 1157 km of the River, a new infrastructure facility was opened – a two-lane bridge crossing JSC became the sponsor of the «Forest Forum», which was held in Yakutsk. Vilyuy highway (the route of the on 1157 km of the Vilyuy highway (the route of the highway passes from For the fifth year in a row, RNG JSC holds scientific and highway passes from Tulun, Irkutsk Tulun, Irkutsk Region to Yakutsk). The span of the bridge is 192 m long, the The company was the main organiser and sponsor of the Day of the oil, Region to Yakutsk). The span of the length of the paved entrances is 2.7 km and the structure has two channel practical conferences called gas and fuel industry in the city of Mirny. The first celebrations were held bridge is 192 m long, the length of and two shore supports. Outdoor lighting was also installed on the bridge. «Quality Day», where participants in September 2018. This event marked the growing role of the oil and gas the paved entrances is 2.7 km and The bridge connected the Mirninsky and Suntarsky districts of Yakutia with of the oilfield market discuss new industry in the life of the diamond province. the structure has two channel and year-round communication. technologies for exploration, two shore supports. drilling and production The construction of the bridge began in September 2018. This is one of the Employees of RNG JSC together with local residents annually of hydrocarbons. The event is major investment projects in the Mirninsky district, which was presented at participate in festive May Day demonstrations. This colourful event attended by employees of the well the investment forum «Western Yakutia-New Opportunities» in Mirny. The is a traditional and much-loved holiday for the local population. The drilling and geology departments work was carried out by a subsidiary of RNG JSC, which built the Friendship company’s employees take a responsible approach to the preparation of RNG JSC and specialists of major Bridge and has established itself as a reliable organisation with experience of the column and each time try to present original compositions oilfield services, engineering and IT in conducting construction work. The bridge was commissioned a month in order to popularise the profession of oil workers among the companies. ahead of schedule. indigenous people. In 2020, bridge crossings were opened: across the Malaya Botuobuya River (connecting Mirninsky and Suntarsky districts), across the Sasar-Yuryakh RNG JSC became the general partner of the international «Forum river (Suntarsky district). of Strategists» in St. Petersburg. Among the 270 speakers were representatives of federal authorities, the international expert society, and the heads of regional and municipal authorities. The forum brought together representatives of 60 subjects of the Russian Federation and a delegation of foreign experts, numbering more than 100 people from 30 countries.
The key mission of the Forum of Strategists is to promote sustainable social and economic development of cities and regions across Russia, to support a multilateral dialogue on long-term development priorities, creating and promoting advanced standards of development management, and form a coordinated view of territorial and strategic planning systems.
For the fifth year in a row, RNG JSC holds scientific and practical conferences called «Quality Day», where participants of the oilfield market discuss new technologies for exploration, drilling and production of hydrocarbons. The event is attended by employees of the well drilling and geology departments of RNG JSC and specialists of major oilfield services, engineering and IT companies: Halliburton, Schlumberger, Baker Hughes, NOV Inc., Emerson, ROGII, Amirig, Udмurtneftegeofizika LLC, VPT Neftemash LLC and East Siberian Engineering Company.
Such meetings are of great importance for RNG JSC, the oil and gas sector of Eastern Siberia and the industry as a whole. The annual Quality Days allow us to expand the boundaries of oil production opportunities Photo and applying innovative technologies, introduce unique engineering The bridge over the Malaya Botuobuya River, built by Eastsib Holding Group of Companies in the solutions, share working tools for optimising activities and discuss Republic of Sakha (Yakutia), provides year-round prospects for further cooperation. travel on the federal highway. 48 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 49
Within the framework of an additional agreement between the RNG JSC actively participates in educational projects of the Mirninsky district administration of the municipality of Mirny City and Syuldyukarneftegaz LLC and, together with the educational institutions of Yakutia, implements a (partner of RNG JSC), assistance was provided in the design of the cultural programme for training young specialists for the oil and gas industry. The and ethnographic centre «House of Peoples’ Friendship» (House of Archy). programme combines theoretical and practical training based on modern The House of Archy should become the centre of spiritual culture of the city educational technology. of Mirny and its activities will be aimed at the preservation and development For example, the company provides expert and technological support in the of original culture, traditions, the revival of folklore, the creation of folk- organisation of the project «Factory processes for training personnel for the art collectives and the formation of an ethno-cultural worldview among oil and gas industry». The project was launched by the Mirninsky Regional children and young people. Technical College (MRTC). The employees of RNG JSC are specialists in the The company presented a new field of automation, production management, and oil and gas production. RNG JSC implements the RNG JSC participates in cultural projects of the region and acted as a general construction concept for the In the «Factory Processes» project, the company acts as an expert in the programme «Change management sponsor of the publication of the book «Mammoths of the Russian Arctic» by development of the natural park exploration and production of oil and gas in difficult climatic conditions. in the system of professional «Living Diamonds of Yakutia», Yury Burlakov and Alexey Tikhonov. The book describes the most important training for the economy of which includes not only the paleontological findings of the last thirty years, broken down by regions of RNG JSC is also implementing the programme «Change management in the the region», developed by the improvement of infrastructure, the Russian Arctic. The publication is intended for a wide range of readers, system of professional training for the economy of the region», developed Moscow school of management but also the expansion of its including local historians, students of general educational institutions, and by the Moscow school of management «SKOLKOVO», «REGION-PROFI» «SKOLKOVO», «REGION-PROFI» together with the Mirninsky Technical College and the Industrial Technical functionality. participants of polar clubs. With the financial support of the company, a together with the Mirninsky School of the city of Svetly. Employees of RNG JSC regularly give lectures photo album «Nature of the Land of Olonkho» was published, dedicated to Technical College and the Industrial on oil and gas topics in educational institutions. Students of professional the nature of Yakutia. Technical School of the city of Svetly. universities annually undergo paid summer practice at the field in the format Employees of RNG JSC regularly RNG JSC has been actively participating in the life of the natural park of student teams. give lectures on oil and gas topics in «Living Diamonds of Yakutia» since 2014. In particular, Syuldyukarneftegaz, Since 2014, there has been an agreement between RNG JSC and the educational institutions. Students a company of Eastsib holding, purchased and handed over an all-terrain autonomous non-profit organisation «Headquarters of Student Detachments of professional universities annually vehicle called Trekol to the park administration to perform environmental of Secondary Special Educational Institutions of the Republic of Sakha undergo paid summer practice at Photo monitoring and scientific activities. The company presented a new (Yakutia)» on the preparation and economic justification of proposals for the field in the format of student Natural Park Living Diamonds of Yakutia construction concept for the development of the natural park. There is a attracting local staff of the Republic to the company. Within the framework teams. regular supply of food for the animals of the park. of this programme, students are annually recruited to student teams among students of technical and construction universities and secondary specialised educational institutions of Yakutia and Siberia for paid work on the Eastern blocks of the Srednebotuobinskoye field. For young people, this is a chance to gain experience in the oil and gas sector and choose the energy industry for their future career. Summer student teams took part in the construction of the central oil collection point at the field. The company paid for the work, provided housing, food and transfer from the city of Mirny to the Eastern blocks of the Srednebotuobinskoye field. In addition, the company allocated financial resources for the creation of an educational centre «Point of Growth» at school No. 9 in the village of Tas- Yuryakh. The head of the Mirninsky district noted this contribution to the educational and social spheres of the region in his letter of thanks. The Point of Growth project is aimed at developing children’s digital, technological and humanitarian skills and consists of four areas: - technology; - computer science; - basic health and safety; - a project site for three zones – chess, media and coworking. A separate space was created for each direction in the school. Within the framework of computer science, students study 3D modelling, master the control of quadcopters with virtual reality helmets. Simulators, mannequins and mats for cardiopulmonary resuscitation, sets-simulators of wounds, wire splints, first aid kits were purchased for basic health and safety classes. Thanks to the necessary equipment and the acquired practical skills, students will learn how to provide first aid. 50 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 51
Point of Growth is a federal project aimed at providing education within the RNG JSC allocated 5.65 million roubles for the purchase of equipment for the digital and humanitarian profile, developed based on the regional system water treatment plant of the village of Syuldyukar (a self - cleaning three- «Modern School» (part of the national project «Education»). The goal of the stage water filtration system produced by one of the leading technological Point of Growth project is to reduce the gap observed between urban and centres in Israel with programmable electronic systems manufactured in the rural schools. USA). The company has repeatedly provided inert materials with delivery to Syuldyukar for filling the site for constructing a water treatment plant. RNG JSC supplies treated water to the budgetary institutions of the village Social programme “RNG for medics” of Tas-Yuryakh free of charge. It provides support to socially unprotected segments of the population of the Mirninsky district, including families raising RNG JSC provides financial support Since the beginning of the COVID-19 outbreak, RNG JSC has been aiding the RNG JSC together with educational to tribal communities of small- healthcare system of Yakutia. The RNG for Medics project took the first place children with physical disabilities, and low-income citizens. The company institutions of Yakutia implements numbered peoples, working to in the nomination «Social and Environmental Initiative» at the regional stage took an active part in the aid campaigns dedicated to the International Day a programme for training young preserve the national identity of of the All-Russian MediaTek Award. RNG JSC was among the first to help the of Disabled People. RNG JSC allocated financial assistance for each family of specialists for the oil and gas the peoples of the North. In order to Mirny Central District hospital. Within the framework of the “RNG to Medics” the village where children with disabilities are growing up. industry, providing financial preserve the national culture, the programme, medicines, personal protective equipment and equipment have RNG JSC together with educational institutions of Yakutia implements assistance to student teams. company takes an active part in the been regularly supplied to the hospital since April 2020. During this time, a programme for training young specialists for the oil and gas industry, The programme combines implementation of the programme the company handed over bedside monitors, a mobile box for transporting providing financial assistance to student teams. The programme combines theoretical and practical training of socio-economic development of patients, protective suits, an artificial lung ventilation device, ultraviolet theoretical and practical training based on modern educational technologies based on modern educational the municipality of Botuobuyinsky technologies necessary for oil and irradiators, plasma defrosting equipment, etc to doctors. necessary for oil and gas sector enterprises. Nasleg for 2017-2021. gas sector enterprises. In 2020, the volume of charitable assistance from RNG JSC increased 4.5 times compared to 2019 and reached 100 million roubles ($ 1.4 mil) (excluding Interaction with the indigenous peoples of the North and charity construction works and materials, only cash transfers). RNG JSC pays special attention to sponsorship, charitable and socially oriented activities in the region of its presence, including work with the indigenous small-numbered peoples of the North in the Republic of Sakha The volume of charity investments of RNG JSC, th. rub. (Yakutia), in whose territory the company conducts production activities. The company maintains a balance between its strategic plans and the Indicators 2018 2019 2020 interests of indigenous people, preserving their cultural heritage and the environment. During the development and formulation of measures, the Volume of charity investments 2200 22 400 100 265 company strictly monitors compliance with the rights of the indigenous peoples and develops a dialogue with them. RNG JSC provides financial support to tribal communities of small-numbered peoples, working to preserve the national identity of the peoples of the North. In order to preserve the national culture, the company takes an active part in the implementation of the programme of socio-economic development of the 100 265 municipality of Botuobuyinsky Nasleg for 2017-2021. The company has applied for the development and conduct of the state ethnological examination of the Yuzhno-Syuldyukarsky licence area. Ethno-expertise is a scientific study on the impact of industrial projects on the native habitat of the indigenous peoples of the northern territories in accordance with the requirements of the Law of the Republic of Sakha (Yakutia) of 14.04.2010 No. 820-Z No. 537-IV. RNG JSC is responsible for the area of economic activity. Therefore, more than 150 tons of oil were delivered to the village of Suntar for heating 45 socially significant facilities. The company’s employees promptly responded to the request and delivered the cargo on their own in difficult climatic conditions. RNG JSC also aided Murbaysky Nasleg (Lensky district of the Republic of 22 400 Sakha (Yakutia)) assistance in the improvement of the cemetery in the village of Severnaya Nyuya. In addition, the company provided dolerite with a total 2200 volume of about 1500 m3 for the repair of the access road to the village of Svetly, Mirninsky district. 2018 2019 2020 CORPORATE GOVERNANCE 54 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 55
CORPORATE GOVERNANCE STRUCTURE
RNG JSC is part of the group Eastsib Holding, being a wholly Commitment to the principles of sustainable development is part of owned subsidiary of the holding. In total, Eastsib Holding the corporate culture of RNG JSC. The company strives to contribute to unites seven subsidiaries: RNG JSC, Eastsib Geologorazvedka the development of the company, as well as to consider the interests of LLC, Syuldyukarneftegaz LLC, Monulakh Geologorazvedka stakeholders when making management decisions. RNG JSC develops LLC, VMCH (Verkhnemarkhachansky) Geologorazvedka strategic goals for priority areas in the field of sustainable development, LLC, TKN (Tokkinsky) Geologorazvedka LLC and Murbay approves relevant policies, internal procedures and standards, implements Eastsib Holding Geologorazvedka LLC. the principles of sustainable development in business processes, and conducts employee training. In turn, RNG JSC also has subsidiaries: RNG Gas LLC, RNG The company strives for continuous improvement of the corporate Energy LLC, RNG Procurement LLC, Vostsibspetsmontazh management system in order to increase transparency and efficiency of LLC, YakutStroyProekt LLC, Syuldyukar Geologorazvedka Commitment to the principles decision-making. The sustainable development management system is LLC and Yakutvzryv LLC. RNG JSC is a multifunctional oil of sustainable development is part RNG JSC integrated into the general corporate governance system of RNG JSC. and gas company with its own engineering and geological of the corporate culture of RNG JSC. geological exploration RNG JSC is a non-public company. The supreme governing body is the The company strives to contribute and production of hydrocarbons exploration. General Shareholder Meeting. The annual General Shareholders Meeting to the development of the company, is held no earlier than two months and no later than six months after the as well as to consider t the interests end of the financial year. The Chairman of the General Shareholder Meeting of stakeholders when making RNG Gas LLC is elected from among the shareholders present by a majority vote. The management decisions. RNG JSC RNG Holding LLC register is maintained by an independent registrar. develops strategic goals for priority engineering holding company gas production areas in the field of sustainable The competence of the general meeting includes the following issues: development, approves relevant - introduction of amendments and additions to the company’s charter; policies, internal procedures - reorganisation and liquidation of the company; and standards, implements Eastsib Geologorazvedka LLC the principles of sustainable RNG Energy LLC - determining the quantitative composition of the Board of Directors, their development in business processes, geological exploration election and termination of powers; and production of hydrocarbons infrastructure and conducts employee training. - increasing and decreasing the authorised capital; - approval of the meeting’s audit; - approval of annual reports and annual accounting statements; SyuldyukarNefteGaz LLC RNG Procurement LLC - distribution of profits and payment of dividends; - formation of the sole executive body of the company; geological exploration of hydrocarbons logistics, supply - making decisions approving large transactions in accordance with the current legislation of the Russian Federation; - making decisions on the company’s participation in financial and Monulakh VostSibSpetsMontazh LLC industrial groups, associations and other associations of commercial Geologorazvedka LLC organisations; geological exploration of hydrocarbons construction - approval of internal documents regulating the activities of the company’s bodies; - resolution of other issues. VMCH YakutStroyProekt LLC The Board of Directors of RNG JSC is elected by the General Shareholder Geologorazvedka LLC Meeting in the number of at least five people. Only individuals can be geological exploration of hydrocarbons construction members of the Board of Directors. Persons elected to the Board of Directors may be re-elected an unlimited number of times. The Chairman of the Board of Directors is elected from among the members of the Board of Directors by a majority vote. TKN Syuldyukar Geologorazvedka LLC Geologorazvedka LLC The Board of Directors is subordinate to the General Shareholder Meeting. This body is a key element of an effective corporate governance system geological exploration of hydrocarbons seismics, drilling and plays a major role in the strategic and business management of the company. The Board of Directors is responsible to the shareholders for the development strategy, including in the field of sustainable development, for the efficiency of activities and control over management in the process Murbay YakutVzryv LLC Geologorazvedka LLC of implementing the tasks set. The Board of Directors of RNG JSC is headed geological exploration of hydrocarbons extraction of common minerals by Frederick Matthew Thomas Ponsonby, a member of the British House of Lords. 56 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 57
The management of the company’s current activities is carried out by the To achieve the goals, the investment committee solves the following tasks: CEO of RNG JSC, the sole executive body. The CEO is appointed to the - perform preliminary review and preparation of recommendations to the Board position by a decision of the General Shareholder Meeting for a period of of Directors on strategic planning and investment policy, long-term plans, main 5 years. The sole executive body is accountable to the company’s Board of activity programmes, annual and long-term business plans and reports on their Directors and the General Shareholder Meeting. A person performing the implementation; functions of the CEO may not simultaneously be the Chairman of the Board - assess the effectiveness of the company’s activities in the long term and make of Directors. recommendations to the Board of Directors on adjusting the existing development strategy of the company and certain areas of its activities, based on the need to To check the financial and economic activities of RNG JSC, an auditor is increase the efficiency of the company’s activities, considering trends in capital formed, which is approved by the General Shareholder Meeting. There is Sustainable development markets and hydrocarbon raw materials, company results, and factors. The main strategic goal management is an integral part of no audit commission in the company. For the annual audit of accounting of the sustainable the company’s management and is (financial) statements, an auditing organisation that is not related to the The investment committee carries out its activities in accordance with its competence, development of RNG JSC implemented at all levels: at the level property interests of the company or its shareholders is involved. interacting with the CEO, the Board of Directors, and the company’s divisions in the is to achieve zero indicators of the Board of Directors of RNG JSC, relevant areas of activity. for crisis situations: accidents, and executive and operational levels. Sustainable development management is an integral part of the company’s injuries, emergencies. The Board of Directors carries out management and is implemented at all levels: at the level of the Board of Modern methods of ensuring RNG JSC has several internal documents that regulate its activities in relation to general management of sustainable Directors of RNG JSC, and executive and operational levels. The Board of the safety of employees’ work the economic, environmental and social aspects of the company’s sustainable development issues and controls Directors carries out general management of sustainable development are a priority in the company’s development: the activities of top management issues and controls the activities of top management in priority areas of activities. Measures are - The policy of RNG JSC in the field of quality, labour protection, industrial and in priority areas of sustainable sustainable development. systematically carried out to development. environmental safety from 23.07.2018.; ensure the reduction There are two committees under the Board of Directors of RNG JSC: the - The regulation on social guarantees, benefits and compensations of RNG JSC from of injuries and the elimination auditing committee and the investment committee. The committees under 20.10. 2017. of the very possibility the Board of Directors take part in the management of the company’s of accidents. sustainable development by preliminary consideration of issues related to The company has approved a development strategy, which contains the following their area of responsibility. main aspects: The main purpose of the auditing committee is to provide the Board of - using modern innovative technologies in the exploration and development of Directors with an objective and realistic view of the current state of the deposits; company’s financial and economic activities and to promote the effective - attracting the largest international and Russian contractors, as well as leading activities of the Board of Directors in terms of monitoring its implementation. industry and academic research institutes of the Russian Federation; - compliance with strict requirements in the production of works; Tasks of the auditing committee: - minimising environmental impacts; - to contribute to minimising the risks of the company’s activities, ensuring - maintaining a high level of corporate responsibility; the safety of assets, timely and reliable accounting and reporting, - modern standards of industrial safety; preventing and countering corruption; - interacting with all interested parties. - to carry out a preliminary review of significant issues of the competence In its activities, RNG JSC is guided by the principles of compliance with the current of the Board of Directors in the field of control over the financial and trends of the industry and the desire for technological leadership in its segment. That economic activities of the company; is why the company develops, adapts and implements advanced technologies. - to prepare recommendations to the Board of Directors on the financial The modernisation of production contributes to productive, safe work in the region. and economic activities of the company. The region’s infrastructure will significantly improve due to the contribution to The committee carries out its activities in accordance with its competence, the improvement of production and high-quality materials, which will reduce the interacting with the CEO of the company and the Board of Directors, negative impact on the health of employees and the population. departments in the relevant areas of activity. RNG JSC pays special attention to the formation of a staff reserve of local residents and graduates of educational institutions, which allows not only to provide the The main purpose of the investment committee is to develop and submit company with the necessary resources, but also to consolidate the progress of the recommendations to the Board of Directors on the following issues: oil and gas industry in the region. In turn, the development of the industry will have - determining the priority areas of the company’s activities; a beneficial effect on the growth of the region’s infrastructure and the opportunities of its population. - development strategy (including financial strategy), strategic goals and objectives of the company’s development in the long term, as well as A successful implementation of the strategy allows us to ensure profit to shareholders annual and long-term investment programmes, annual and long-term and return of the funds raised. RNG JSC develops projects and supports the local business plans and reports on their implementation. population of Eastern Siberia and provides jobs for indigenous residents. 58 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 59
The Board of Directors
Biographical information: Biographical information: ∙ Born in 1958 ∙ Born in 1948 ∙ Studied Physics at Cardiff University and Oilfield Engineering at Imperial ∙ Graduated from the Geological and Geophysical Faculty of Novosibirsk College London (UK) State University (NSU); and completed a postgraduate course of the ∙ Holder of the official hereditary title of Lord Mathematical Faculty of the Higher School of Economics ∙ Member of the House of Lords of Great Britain Positions held: Positions held: ∙ 1973–1985: Supervisor of the NSU research group for forecasting oil and Frederick Matthew ∙ 1981–1984: Data Engineer at Geoservices Alferenko Gennady gas fields in Eastern Siberia and Sakhalin Thomas Ponsonby ∙ 1984–1986: Oil Engineer at Charterhouse Petroleum Member of the Board of Directors ∙ 1986–1988: Oil Engineer at Petrofina ∙ 1985–1992: Founder and President, Chairman of the Board of Directors Chairman of the Board of Directors ∙ 1988–1989: Senior Commercial Engineer at Texas Eastern of the Social Inventions Fund ∙ 1989–1992: Senior oil Engineer at LASMO PLC ∙ 1992: Chairman of the Board of Directors of the Europe-America 500 ∙ 1997–2001: Commissioner of the Council of Europe International Consortium ∙ 1994–1998: Chief Engineer at Phibro Energy ∙ 1994–1998: Head of the National Fund and the Strategic Resources of ∙ 1998–2002: Executive Chairman at Euroinvest LTD Russia Forum ∙ 2001–2005: Independent Director at Acorn Oil & Gas LTD ∙ 1998–2000: Director of Arthur Andersen, organising meetings of leaders ∙ 2003–2008: Independent Director at Emerald Energy PLC of direct investment in the Russian economy ∙ 2005–2009: Independent Director at Fairfield Energy LTD ∙ 2001–2002: Advisor to the Chairman of the Management Board of ∙ 2005–2011: Chairman of the Board of Directors and CEO of Rosehill Energy PLC Gazprombank JSC ∙ 2010: Chairman of the Board of Directors at Aladdin Oil & Gas AS ∙ 2002–2007: Director for Strategic Development, Ernst & Young ∙ 2001–2010: Commissioner of the Organisation for Security and ∙ From 2007: Strategic Advisor to PwC, Russia Cooperation in Europe ∙ 2008–2011: Senior Advisor to DLA Piper, Russia ∙ 2012–2013: Independent Director of Yakut Energy LTD (formerly the main shareholder of Taas-Yuryakh Neftegazodobycha LLC) ∙ From 2020: Member of the Board of Directors of RNG JSC ∙ From 2014: Chairman of the Board of Directors of RNG JSC
Biographical information: Biographical information: ∙ Born in 1986 ∙ Born in 1943. ∙ Graduated from the G.V. Plekhanov Russian Economic University in 2008 ∙ Graduated from Sverdlovsk Institute of Law and has a degree in Finance and Credit ∙ Distinguished Lawyer of the Republic of Sakha (Yakutia) and Russia ∙ PhD in Economics Rakitin Vladimir ∙ Honorary Employee of the Investigative Committee of the Russian Positions held: Kolmogorov Vasiliy Federation CEO ∙ 2007–2010: Direct Investment Project Manager at Evrofinance ∙ Honorary Employee of the Prosecutor’s Office of the Russian Federation Mosnarbank JSCB Member of the Board of Directors ∙ Awarded the Order of Honour ∙ 2010–2014: Senior Tax Adviser at the Moscow office of Lawrence Graham Positions held: (CIS) LLP ∙ 1990–1994: Prosecutor of the Republic of Sakha (Yakutia) ∙ 2014–2019: Director of Finance at RNG JSC ∙ 1994–2004: Deputy Prosecutor General of the Russian Federation ∙ From 2019: CEO of RNG JSC ∙ 2000–2004 : Head of the Main Investigative Department at the Russian Federation Prosecutor General’s Office Biographical information: ∙ 2004–2006: Advisor to the Prosecutor General of the Russian Federation ∙ Born in 1949 ∙ 2005–2008: Advisor to the President-Chairman of the Management ∙ Studied organisation management, law at the Moscow Institute of Board of VTB Bank PJSC International Economic Relations, and logistics at the NRU HSE ∙ 2009-2010: Advisor to the CEO of Rosvino LLC Positions held: ∙ 2010-2015: Advisor to the President-Chairman of the Management Board Vilochkin Yury ∙ 1999–2000: Deputy Head of Administration for the Russian Ministry of of Evrofinance Mosnarbank JSCB Railways ∙ From 2015: Member of the Board of Directors of RNG JSC Member of the Board of Directors ∙ 2004–2010: Vice President of Evrofinance Mosnarbank JSCB ∙ From 2020: Chairman of the Auditing Committee of RNG JSC ∙ 2010–2013: Chief Security Officer for Sberbank’s Northwest Branch ∙ 2013–2014: Vice President of Soyuz Corporation ∙ From 2014: First Deputy Chief Executive Officer of Inter-State Development Corporation JSC ∙ From 2016: Member of the Board of Directors of RNG JSC 60 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 61
Management
Biographical information: Biographical information: ∙ Born in 1986 ∙ Born in 1988 ∙ Graduated from the G.V. Plekhanov Russian Economic University in 2008 ∙ Graduated from Lomonosov Moscow State University (MSU) with a and has a degree in Finance and Credit Master’s degree in Geology ∙ PhD in Economics Positions held: ∙ 2012–2016: Senior Geologist at Roxar Services AS (Emerson Group) Positions held: ∙ 2016–2020: Head of the Department, Deputy Head of the Division, Head Rakitin Vladimir ∙ 2007–2010: Direct Investment Project Manager at Evrofinance Grechikho Pavel of the Geology Division of RNG JSC Mosnarbank JSCB CEO Deputy CEO — Chief Geologist ∙ From 2020: Deputy CEO of RNG JSC and Chief Geologist ∙ 2010–2014: Senior Tax Adviser at the Moscow office of Lawrence Graham (CIS) LLP ∙ 2014–2019: Director of Finance at RNG JSC ∙ From 2019: CEO of RNG JSC Biographical information: ∙ Born in 1980 ∙ Graduated from the Tyumen State Oil and Gas University with a degree in Design, Construction and Operation of Gas and Oil Pipelines and Gas and Biographical information: Oil Storage Facilities ∙ Born in 1974 Positions held: ∙ 2002–2007: Lead Engineer, Pipeline Construction for Surgutneftegaz’s oil ∙ Graduated from the Samara State Technical University with a degree in and gas production department, Fedorovskneft Development and Operation of Oil and Gas Facilities ∙ 2007–2012: Supervisor of Technical Construction at the Uvat Project led Positions held: by TNK-Uvat LLC Cherykayev Evgeny ∙ 1998–2011: Oil and Gas Production Foreman, Lead Technologist of the Oil Uskov Alexandr ∙ 2012–2014: Head of a Stand-alone Tyumen division at Taas-Yuryakh and Gas Production Workshop, Shift Supervisor at the Central Dispatch Neftegazodobycha LLC Deputy CEO — Head of the Capital Deputy CEO — Chief Engineer Office, and Deputy Head of the Central Dispatch Office at Orenburgneft ∙ From 2014: Working for the Eastsib Holding Group Construction Department ∙ 2012–2014: Head of Oil Production Department, Deputy Chief Engineer ∙ From 2020: Deputy CEO of YakutStroyProekt LLC and Chief Engineer at Taas-Yuryakh Neftegazodobycha LLC ∙ From 2014: Head Engineer of RNG JSC ∙ From 2015: Deputy CEO – Chief Engineer of RNG JSC
Biographical information: ∙ Born in 1974 ∙ Graduated from the Ukhta Industrial Institute in 1998 with a degree in Drilling of Oil and Gas Wells, and graduated from the Russian Presidential Biographical information: Academy of National Economy specialising in Finance and Credit ∙ Born in 1978 Positions held: th ∙ Graduated from Moscow State University of Economics, Statistics and ∙ 1997: — Assistant Driller of Production and Exploration Drilling of the 4 category in Surgutneftegaz PJSC Informatics (MESI with a degree in Finances and Credit, and graduated from MSU majoring in Law ∙ 2000–2002: Mud Drilling Engineer of the 1st category in Lukoil Burenie LLC Goncharov Pavel ∙ PhD in Legal Sciences Yakimov Yuri ∙ 2002–2011: Mud Drilling Engineer, Technical Supervisor and Project Positions held: Deputy CEO and Chief Legal Officer Deputy CEO for Drilling Manager in Halliburton Int. Inc. ∙ 2004–2006: Advocate Assistant in Advocate Bureau Reznik, Gagarin ∙ 2011–2011: Chief Technologist, Head of Chief Process Engineer’s Office in Abushakhmin and Partners UF Rn-Burenie LLC ∙ 2006–2008: Senior Legal Advisor for the Legal Consulting Practice BDO ∙ 2011–2012: Head of Drilling and Well Servicing Workover Department Unicon PJSC Auditors and Consultants (WSW) at Taas-Yuryakh Neftegazodobycha LLC ∙ 2008–2009: Senior Lawyer of the Department of Legal Support of ∙ 2012–2014: Head of Drilling Integrated Projects in Russia for Weatherfold Investment Projects of Evrofinance Mosnarbank JSCB Holdings ∙ From 2010: Chief Legal Officer of RNG JSC ∙ From 2020: Head of Well Drilling Department of RNG JSC 62 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 63
Investment Committee of the Board of Directors Auditing Committee of the Board of Directors
Key objectives of the investment committee: development and Key objectives of the Auditing Committee: ensuring an objective and real submission of recommendations to the company’s Board of Directors on representation of the Board of Directors on the current state of the company’s determining the company’s priority areas of activity; development strategies financial and economic activities and promoting the effective activities of for annual and long-term investment programmes, annual and long-term the Board of Directors in terms of monitoring its implementation. business plans and reports on their implementation. Committee Tasks: Committee Tasks: • assistance in minimising the risks of the company’s activities, ensuring • preliminary consideration and preparation of recommendations to the the safety of assets, timely and reliable accounting and reporting, and Board of Directors on strategic planning and investment policy, long- preventing corruption; term plans, main activity programmes, annual and long-term business • preparing recommendations to the Board of Directors on the financial and plans of the company and reports on their implementation; economic activities of the company; • assessment of the company’s performance in the long-term perspective • interaction with the CEO, the Board of Directors, departments in the and development of recommendations to the Board of Directors on relevant areas of activity in accordance with their competence. the correlation of the company’s existing development strategy and individual areas of its activities, the results of the company’s activities and its competitors, as well as other factors; • implement activities in accordance with competence, interaction with the CEO, the Board of Directors and divisions of the company in the relevant areas; • monitoring the implementation of the company’s business plan.
Committee Chairman Committee Chairman Bondarenko Kolmogorov Vasiliy Alexander Biographical information: Biographical information: • Born in 1943 ∙ Born in 1972. • Graduated from the Sverdlovsk Institute of Law ∙ Studied International Economic Relations in Saint • Distinguished Lawyer of the Republic of Sakha (Yakutia) Petersburg State University of Economics and Finance and Russia ∙ Completed a Private Equity Course at London Business School • Honorary Employee of the Investigative Committee of the Russian ∙ PhD in Law Sciences Federation ∙ Holds CIIA Diploma (Certified International Investment Analyst) • Honorary Employee of the Prosecutor’s Office of the Russian Federation Positions held: • Awarded the Order of Honour ∙ 1991–1993: Minority Shareholder and Director of Modern TV and Radio Positions held: ∙ 1994–1998: Managing Director, Head of Department of Monetary and • 1990–1994: Prosecutor of the Republic of Sakha (Yakutia) Financial Operations at the St. Petersburg Branch of the Imperial Bank • 1994–2004: Deputy Prosecutor General of the Russian Federation ∙ 2005–2010: Member of the Board of Directors at PRIME-TASS Business News • 2000–2004 : Head of the Main Investigative Department at the Russian Agency Federation Prosecutor General’s Office ∙ 2000–2014: First Vice President and Deputy Chairman of the Management • 2004–2006: Advisor to the Prosecutor General of the Russian Federation Board at Evrofinance Mosnarbank JSCB • 2005–2008: Advisor to the President-Chairman of the Management ∙ 2008–2013: Member of the Board of Directors, Chairman of the Board of Board of VTB Bank PJSC Directors at Taas-Yuryakh Neftegazodobycha LLC • 2009-2010: Advisor to the CEO of Rosvino LLC ∙ 2008–2016: Partner at Wragge Lawrence Graham CIS LLP • 2010-2015: Advisor to the President-Chairman of the Management Board ∙ From 2016: Chairman of the Investment Committee of the Board of Directors of Evrofinance Mosnarbank JSCB of RNG JSC • From 2015: Member of the Board of Directors of RNG JSC • From 2020: Chairman of the Auditing Committee of RNG
Committee Members Committee Members Rakitin Vladimir — CEO Vilochkin Yuri — Member of the Board of Directors Perov Denis — Director of the Economic and Analytical Department Alferenko Gennady — Member of the Board of Directors Uskov Alexandr — Deputy CEO - Head of the Capital Construction Department Yakimov Yuri — Deputy CEO for Drilling Grechikho Pavel — Deputy CEO – Chief Geologist 64 RNG JSC SUSTAINABLE DEVELOPMENT REPORT RNG JSC SUSTAINABLE DEVELOPMENT REPORT 65
INTERACTION WITH STAKEHOLDERS
Interaction with the company is one of the most important aspects of The company also covers its activities and interacts with interested persons RNG JSC’s activities. The company strives to build honest and transparent using the most popular social networks: Facebook https://www.facebook. relationships with its key stakeholders through constant interaction, com/RNGoil/, Instagram https:// www.instagram.com/rngoil and VKontakte consideration of interests and timely information about plans and results of https://vk.com/rngoil. activities. To improve the business environment and the status of business processes, as well as to establish trade, economic, scientific and technical ties with The main stakeholders of RNG JSC are shareholders, federal and regional entrepreneurs from other regions of the Russian Federation and foreign authorities, company employees and local residents of the region, countries, RNG JSC actively participates in national and international international and Russian partners, public organisations and mass media. associations. Membership in associations helps the company to participate RNG JSC pays great attention to RNG JSC’s official website http://rngoil.ru plays a key role in the development in international conferences and projects, maintaining the company’s interaction with global business community. interaction with stakeholders, the of external communications, and in 2021 this resource on the Internet range of which is quite wide in the became available in the Yakutian language. Yakutia has a rich original RNG JSC membership in national and international associations company. At the same time, the heritage, so it is very important to preserve and popularise the Yakutian principles of customer orientation language. Previously, the site was presented in Russian and English. and information openness Organisation Organisation’s mission are professed for any level of The site materials are constantly updated. It is necessary to note the regularity Maintaining effective social and labour relations which contribute to high competitiveness and increase relationships. of the posted information, the efficiency of presentation and accessibility in the income of enterprises, increase in labour productivity, job security, professional and career growth, for all interested persons. The reliability of the data presented on the training and self-development of employees, improving their quality of life, and achieving a reasonable The Russian Union of balance between working and free time. website and the completeness of content corresponds to the maintenance Industrialists Promoting the sustainable development of independent and responsible companies which meet the of a reasonable balance between the openness of the company and its and Entrepreneurs long-term economic interests of business, contributes to social peace, security and well-being of citizens, commercial interests. (RUIE) preservation of the environment, and respect for human rights. Assistance in achieving a balance of interests of owners and shareholders, the state, employees, suppliers RNG JSC posted 316 information materials on its website in the «Press and consumers, public institutions and other parties affected by the activities of RUIE members. Centre» section, including news and publications about the company in the mass media (174 units), as well as photo and video materials (142 units). Coordination of interests in the gas sector, a platform for dialogue on issues relevant to the participants Russian Gas Union The news covers all the most significant events of the company: economic, of the oil and gas industry, a conductor of their interests in dialogue with the state. environmental, social, and cultural. The number of news publications on the website about the company’s activities during the period under review Chamber of Commerce Promoting the development of entrepreneurship, creating favourable conditions for the renewal of the and Industry of the business environment, protecting the rights and legitimate interests of entrepreneurs related to the steadily grew and had an upward trend. implementation of economic activities, promoting local goods and services to domestic and foreign Republic of Sakha markets, establishing trade, economic, scientific and technical relations of entrepreneurs of the Republic (Yakutia) of Sakha (Yakutia) with entrepreneurs from other regions of the Russian Federation and foreign countries. Association of Independent Representation of corporate interests of the entire sector of independent oil and gas companies in state The number of news publications on RNG JSC’s website Oil and Gas Producing authorities, institutions and departments, public organisations of Russia Organisations Assoneft 47 Russo-British Chamber Promotion and development of economic relations, investment and trade between the United Kingdom and the Russian Federation, as well as representation and expression of the views of the business 42 of Commerce communities of both countries
Franco-Russian Development of economic cooperation between the two countries and support of French and Russian Chamber of Commerce companies at every stage of business development. and Industry
American-Russian Promoting the development of business American-Russian cooperation, increasing the volume of 24 investments and trade turnover in the oil and gas, petrochemical, medical, aerospace, transport, and 22 Chamber of Commerce financial industries. 20
ANTI-CORRUPTION MEASURES 10 9 The company’s anti-corruption activities are carried out in accordance with the legislation of the Russian Federation in the area of anti-corruption. With regard to the fight against corruption, procedures have been introduced to ensure a competitive environment for all purchases, the collegiality of 2014 2015 2016 2017 2018 2019 2020 decisions taken and a significant number of applications received from manufacturers for each lot which is put on sale. Syuldyukar YakutVzryv YakutStroyProekt Geologorazvedka
Member of the Russian Member of Certificate Union of Industrialists and Chamber of Commerce and GOST ISO 9001-2011 Entrepreneurs Industry of the Republic of Quality Management Systems Sakha (Yakutia)
Member of Member of the Certificate GOST Р 54934-2012 (OHSAS Assoneft USA-Russia Chamber of 18001:2007) Commerce Occupational safety and Health Management System
Member of the Russian Member of the Certificate GOST Р ISO 14001-2016 (ISO 14001:2015) Gas Union Russo-British Chamber Environmental management system of Commerce
Member of the Franco- Russian Chamber of Commernce and Industry
Offices in Moscow Office in Yakutsk: Head office: Address: 677007, Yakutsk, Address: 121099, Moscow, Novy Arbat, d. 27 Glukhoy Bl., d. 2, korp. 1, BC Portal, floor 3, cab. 313 Telephone: +7 (495) 662-71-33 Telephone: +7 (4112) 33-50-90 Fax: +7 (495) 287-95-18 Fax: +7 (4112) 33-50-99 E-mail: [email protected] E-mail: [email protected]
Address: 129090, Moscow, Office in Samara 1st Troitskiy Bl., d. 12, korp. 5 Address: 443110, Samara, Telephone: +7 (495) 662-71-33 Lesnaya st, d. 23, korp. 100, office 207 Fax: +7 (495) 287-95-18 Telephone: +7 (927) 761-34-99 E-mail: [email protected] Fax: +7 (495) 287-95-18 E-mail: [email protected] Office in Mirny Address: 678170, Mirny, Office in Lensk Tikhonova st, d. 12, korp. А Address: 678144, Lensk, Telephone: +7 (495) 287-95-19 Pervomayskaya st., d. 32, korp. А, office 1 Fax: +7 (495) 287-95-18 Telephone: +7 (495) 662-71-33 E-mail: [email protected] Fax: +7 (495) 287-95-18 E-mail: [email protected] Office in Ust-Kut Address: 666780, Irkutsk Oblast, Ust-Kut, Office in Irkutsk Lugovaya st., str. 21/22 Address: 664050, Irkutsk, Shiryamova st, d. 38/1 Telephenr: +7 (495) 662-71-33 Telephone: +7 (495) 662-71-33 Fax: +7 (495) 287-95-18 Fax: +7 (495) 287-95-18 E-mail: [email protected] E-mail: [email protected]