Environmental Report «Surgutneftegas

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Environmental Report «Surgutneftegas ENVIRONMENTAL REPORT Contents MESSAGE FROM ANATOLY S. NURYAEV, FIRST DEPUTY DIRECTOR GENERAL OF “SURGUTNEFTEGAS” PJSC Protection and rational use KEY AREAS of water resources 24 OF THE COMPANY'S ENVIRONMENTAL Waste management 26 ACTIVITY Protection and rational use of land 30 Forest protection 34 01 Indicators PJSC “Surgutneftegas” The Ecology national project of an environmental impact 35 and key areas of the Company's environmental activity 6 In-house environmental monitoring 38 Key areas of the Ecology program 7 Biodiversity conservation and support of specially protected The Company's readiness to adopt natural reservations the best available technologies 9 and other territories with special mode of management 40 Interaction with the small-numbered ENVIRONMENTAL indigenous peoples of the North 44 SAFETY R&D activities in the field of environmental protection 45 Industrial environmental control 46 02 The “green office” principles 47 Accident risk mitigation measures 12 Environmental education and professional training Receipt inspection of pipe products 13 of employees 48 Field pipeline corrosion monitoring Cooperation with public organizations and diagnostics 14 and media 50 Pipeline inhibitor protection 15 Use of pipe products BASIC STRATEGIC with an internal coating 16 DOCUMENTS IN THE FIELD Dehydration of oil 17 OF ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL ACTIVITY 04 Environmental policy 54 The Company's responsibilities 55 Policy on interaction 03 with the small-numbered indigenous Air protection 20 peoples of the North 56 ANATOLY S. NURYAEV First Deputy Director General “Surgutneftegas” PJSC Environmental report 2018 Environmental 2 For the period from 2018 to 2024, at resource saving and energy efficiency. the Ecology national project has become For the last five years, “Surgutneftegas” PJSC one of the priority development vectors for investments in environmental activity the Russian Federation. Its objectives and aims exceeded RUB 92 billion. align with the regulations of the Environmental The Company understands policy of “Surgutneftegas” PJSC. For almost the importance of maintaining balance, 30 years, the Company has successfully been providing not only an economic performance implementing the comprehensive measures of “Surgutneftegas” PJSC operations, but also of the Ecology corporate program, closely the reliability and environmental friendliness PJSC “Surgutneftegas” following the requirements of environmental of all production processes as well as legislation. the social responsibility of the business. “Surgutneftegas” PJSC is the all-time The Company develops an effective leader of Russian fuel and energy complex collaboration with various public institutions. in terms of utilization of associated petroleum Thanks to our combined efforts a solid gas. As far back as ten years ago, the Company foundation is laid for the further sustainable reached the level of 95% in terms of efficient development of Surgutneftegas and utilization of associated petroleum gas. territories of the Company’s operations. Since 2012 to the present day, Surgutneftegas The Company is engaged in has been holding the record in the sector – a constructive dialog with the indigenous more than 99%. people representing the small-numbered The Company ensures environmental peoples of the North, who revere customs safety of field pipelines: for the fifth year, it has and the way of life of their ancestors, been operating its own in-house specialized engaging in deer herding and other enterprise for application of an internal traditional industries. Surgutneftegas cares polymer coating on pipes and pipeline about biodiversity conservation, performs fittings. At the end of 2024, the Company an extensive work to artificially restore will use only pipelines with an internal anti- aquatic biological resources and forests. corrosion coating. The Company shows a high level The Company continues to develop and of information transparency in the issues move forward: it tests and implements the best of environmental responsibility. available technologies, new machinery, “Surgutneftegas” PJSC uses resources equipment, improves the competences in the most efficient way, minimizes its of its personnel. In all areas of its operations environmental impact in order to preserve the Company steadily mitigates a negative the unique natural heritage of Russia for environmental impact of production aiming future generations. 3 01 Key areas of the Company's environmental activity The Ecology national project and key areas of the Company’s environmental activity Throughout the entire territory of Russia we must ensure the highest standards of ecological well-being. Vladimir V. Putin, President of the Russian Federation The Ecology national project is management”, “Infrastructure for especially implemented pursuant to Decree of hazardous waste management (hazard the President of the Russian Federation, classes I-II)”, “Biodiversity conservation and Vladimir Putin, dated 7 May 2018 ecological tourism development”, etc. “On the national goals and strategic tasks of “Surgutneftegas” PJSC pays close the development of the Russian Federation attention to the issues of environmental for the period up to 2024”. The project covers protection. The implementation of 11 areas, including “Clean country”, “Fresh the Ecology corporate program provides air”, “Clean water”, “Forests preservation”, resource saving and a consistent reduction of “Integrated system for municipal waste the environmental impact of production. Environmental report 2018 Environmental 6 Key areas of the Ecology program: construction of environmental facilities, 6 centers for oily soil decontamination; including air protection facilities, waste decontamination and utilization facilities; 3 centers for sludge decontamination with sludge storage ponds, units for oily air protection; fluid recovery and Heater-Treater three- phase separators; protection and rational use of water resources; 5 mobile units for tank cleaning and initial oil sludge treatment, including three- industrial waste decontamination and phase centrifuges; utilization; 33 single- and multiple- cell sludge PJSC “Surgutneftegas” protection and rational use of land; storage ponds with a total capacity of 81 thousand cubic meters; monitoring of environmental components and control of production 10 units for thermal oil sludge facilities operation; decontamination with a total capacity of 70 thousand cubic meters per year; ensuring environmental safety of oil production facilities, including 5 landfills for disposal of solid household pipelines; and industrial wastes designed to dispose of production and consumption environmental training and education of waste with a total capacity of the personnel; 1,671 thousand cubic meters; implementation of the “green office” 21 Forsazh mobile units for thermal principles in each administrative building decontamination of solid oily waste with of “Surgutneftegas” PJSC; a total capacity of 15.75 thousand tonnes per year; biodiversity conservation in the areas of the Company’s operations; units for shredding waste paper and non-returnable plastic containers with R&D activities in the field of a capacity of 1,150 kilograms per hour environmental protection. and 50 kilograms per hour respectively; The Company annually increases a tire recycling plant for recycling worn- its production resource saving capacity, out tires and inner tubes with a capacity and owns a vast fleet of machinery and of 5 thousand tonnes per year; equipment, including: a workshop for application of an anti- gas processing plant; corrosion coating on pipes and pipeline fittings with a capacity of 720 kilometers 23 gas turbine power plants and 7 gas of pipes and 15 thousand fittings per year. reciprocating engine power plants (GTPP, GREPP); A high level of environmental safety of “Surgutneftegas” PJSC production across 31 compressor stations; the whole territory of the Company’s operations, including new regions of operations is ensured 2 gas processing units for utilization of by a sustainable financing of environmental associated petroleum gas (APG); protection measures. The annual costs of the Company for 112 initial water separation units (IWSUs); environmental protection are made up of 7 a number of different expenses, including wastewater utilization, waste management, those of repairing and replacing pipelines, land reclamation, environmental monitoring protecting oilfield equipment and facilities and R&D activities. In the reporting year, from corrosion, preventing equipment failures the costs reached RUB 17.4 billion. In 2019, and oil contamination, and elimination of the costs are planned to be increased by their consequences, air protection, industrial RUB 0.5 billion. INVESTMENTS IN ENVIRONMENTAL PROTECTION MEASURES BY “SURGUTNEFTEGAS” PJSC FOR 2014-2019, RUB MN 2019 Measures 2014 2015 2016 2017 2018 (as planned) Construction of 4,100.43 5,078.51 4,010.00 4,566.71 2,382.55 2,536.36 environmental facilities Pipeline accident prevention 4,981.09 4,306.14 5,193.77 5,078.22 4,814.70 4,925.87 Industrial wastes and wastewater utilization and 7,333.30 6,457.79 6,370.34 9,330.36 8,493.88 8,007.65 decontamination Prevention and elimination of oil contamination 1,487.13 1,293.76 1,183.44 1,083.96 750.93 898.54 consequences, reconstruction of production facilities Sludge pits reclamation 360.15 398.90 487.86 441.17 396.14 792.97 Monitoring 131.64 143.19 189.03 249.93 268.64 287.46 Air protection 90.98 104.37 98.42 92.73 105.99 95.31
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