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Reliability of Russian Pipeline System

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Reliability of Russian Pipeline System Sustainability Report for 2020 LUKOIL Group 79 RELIABILITY OF RUSSIAN PIPELINE SYSTEM Management system ELEMENTS OF THE MANAGEMENT CORPORATE SYSTEM DOCUMENTS OBJECTIVES The Company’s policy related to improving the functional Federal Law No. 116-FZ “On the Industrial Safety reliability of pipeline transport is governed by legal requirements of Hazardous Production Facilities” dated July 21, and corporate standards 1997, Federal rules and regulations on industrial safety “Safety rules in oil and gas industry” (approved by Rostekhnadzor order No. 534 dated December 15, 2020); “Rules for the Safe Operation of In-Field Pipelines” (approved by Rostekhnadzor order No. 515 dated November 30, 2017); other federal regulations and rules on industrial safety PRIORITIES/STANDARDS Our priority is to adopt an integrated approach to the safe Corporate regulations (STO LUKOIL 1.19.1-2012; operation of pipelines: inhibitor coating, the introduction of 1.19.2-2013 and 1.19.3-2013) corrosion-resistant pipes, timely diagnostics, and the prompt elimination of detected defects INDICATORS The pipeline failure rate for oilfield pipelines, number of failures Resolution of the Network Group “Improvements to per 1 km, per year the Oilfield Pipe and Tubing Reliability” of PJSC LUKOIL (further, Network Group) ASSESSMENT The principal source of expertise is the activities of LUKOIL’s Regulations on the Knowledge Management System of Improvement of the Oilfield Pipe and Tubing Reliability the Exploration and Production business segment Network Group, which forms part of the Corporate Knowledge (approved by the First Executive Vice President Ravil Management System Maganov on March 19, 2014) RESPONSIBILITY The system covers all management levels, from senior The approved annual work plan of the Network Group management to specialized units at LUKOIL Group entities. as part of the Industrial Safety Program Responsible individuals in this area also include the experts and the head of the Network Group TARGETED PROGRAMS, PROJECTS AND INITIATIVES Every Russian oil and gas producer has an investment program Annual and mid-term investment programs of “The renovation and technical re-equipment of pipeline transport PJSC LUKOIL facilities” The Integrated Program on the Improvement of Oilfield Pipeline Reliability, adopted by each entity of the Exploration and Production business segment 80 LUKOIL Group Our goals • Increase of the share of pipelines The share of operating pipelines, with anti-corrosion coating: when including corrosion-resistant In Russia, LUKOIL operates a well- replacing corroded sections of pipes older than 20 years has developed field pipeline system that pipelines, we used such pipes been reduced. This indicator was is longer than the Earth circumference 100 percent of the time. 19 percent of the total length of at the equator and the most extensive • Additional laying of internally coated the pipeline system in 2020 and offshore pipeline system among pipes, which has increased on decreased significantly over the Russian oil and gas companies (over average 11 percent per year over the past five years (it was 23 percent 04 550 km, in length). We consistently last five years. in 2016). The inspection and carry out work to mitigate pipeline • The share of pipes with a longer monitoring of these pipes are more failure risks and have a well-run service life, as well as pipes made frequent, with the concurrent use of reliability management system for of non-corrosive materials, is being several methods of control during oilfield and mainline pipelines in place1. increased. one visit (for example, magnetic • The share of pipeline replacement inspection, automated diagnostic Our goal is the consistent maintenance in 2020 was 2.3 percent. The complexes, and other modern and stabilization of the system and the replacement volume and methods). reduction of pipeline accidents as per rate2 are determined based the best global practices. on the results of diagnostics, Thanks to the comprehensive examinations, and inspections measures taken, reliability indicators Continuous and targeted work to of their technical condition and improved in 2020 in the main oil improve pipeline reliability indicators subject to the following criteria: production areas — Siberia and is crucial for minimizing the risk any potentially hazardous sections the Perm Territory. The specific of accidents. At the same time, and preconditions for incidents, coefficient of pipeline failures3 in all other underlying causes, such as scheduled increase in product Russian entities continued to decline “human error” during construction, transfer volumes, and elimination in 2020 and stood at 0.062 cases maintenance, and repair activities of regulations by regulatory per 1 km of pipeline per year (0.081 performed by service organizations, authorities. in 2019). the integrity of other process equipment, etc., also influence the SAFETY SAFETY overall accident results. For this Reliability indicators of the Russian pipeline system, % reason, we combine measures to 2018 2019 2020 improve the reliability of the pipeline system with steps to ensure the safety Share of corrosion-resistant 26.8 30.4 32.2 of production facilities and contractor pipelines responsibility. Prevention of land spills The principal methods of improving reliability To improve pipeline reliability, we of field pipeline operation continuously monitor the condition • Quality control of tubular products at manufacturing plants and of pipelines using various methods close interaction with suppliers designed to prevent corrosion, as • Industrial safety reviews, early engineering diagnostics, and well as unintentional or intentional corrosion monitoring of pipelines with a risk rating of anomalies and damage that may be caused by third defects identified. Based on the results of inspections, identification parties. of potentially hazardous sections that need to be repaired or replaced • Expanding the application of alternative non-corrosive materials The main activities under the and pipes with internal protective coatings “Reconstruction and technical • Application of inhibitor and electrochemical protection of pipelines re-equipment of pipeline transport facilities” program resulted in the following: 1. The information in this section pertains only to the Russian entities of LUKOIL Group. 2. The rate of replacing rejected pipes is determined not only by the Company’s investment plans but also by the need to comply with statutory procedures and documentation. 3. A pipeline failure does not always entail a spill of oil, oil products or formation water, or a gas leak. Pipeline failure means a failure of performance associated with a sudden total or partial shutdown of the pipeline due to depressurization of the pipeline itself or shut-off and control valves or a blockage of the pipeline. The calculation uses the total length of pipelines (oil pipelines, gas pipelines, and water pipelines). Sustainability Report for 2020 LUKOIL Group 81 Pipes made of alternative materials. their reliability and quality indicators, RITEK facilities, and the multiphase We see the use of pipes made of and contribute to better reliability of pipeline at the new D-33V field in the alternative (polymer) materials as pipelines in the Russian oil and gas Kaliningrad Region. the primary way to improve the industry overall. corrosion-prone sections of pipelines. To ensure the safe operation of Non-metallic pipes are already in use In 2020, LUKOIL, together with a high-pressure water pipelines, self- at RITEK’s facilities in the Volgograd pipe manufacturer and with the pressure stabilizers that prevent Region, and field trials are ongoing participation of St. Petersburg fractures resulting from internal at LUKOIL-West Siberia and LUKOIL- Polytechnic University, conducted hydraulic shock are installed at Perm’s facilities. tests of various labeling methods, potentially hazardous sections. This which resulted in determining the solution increases the reliability The Ministry of Energy of the most promising types. Labeling of high-pressure water pipeline Russian Federation appointed an durability and traceability of the pipe operation. interdepartmental task force to life cycle will be demonstrated by pilot develop national standards for trial runs scheduled for 2021–2022. Unmanned aerial vehicles. We the use of polymer pipe products. started using UAVs (including those LUKOIL’s experts partake in the work New methods for monitoring with internal combustion engines of the task force. In 2020, a national pipeline integrity that can operate in Arctic conditions) standard was developed for the for aerial surveillance of production design and operation of field pipelines During the last two years, new facilities and monitoring of changes made of fiberglass pipes, and this methods to improve pipeline safety in conditions during emergencies. standard is expected to be approved have been tested and implemented. The main advantage of UAVs is the in 2021, while two other standards These include: early detection of depressurized for using polymer-reinforced pipes • oil leak detection systems and pipelines with oil spills. The are to be developed and approved. technical devices that prevent frequency of flights depends on local We believe that with the new national hydraulic shocks; conditions and the nature of the standards in place and, given positive • unmanned aerial vehicles (UAVs). facilities: in particular, in-field and test results, the use of non-metallic inter-field
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