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The Komi Republic

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The Komi Republic WWW.LUKOIL.COM THE KOMI REPUBLIC for 2020–2022. Plans include additional work to replace hazardous sections of pipelines and to rehabilitate contaminated sites. LUKOIL is taking active steps to improve the reliability of its pipeline system and the overall On an ongoing basis the Company interacts with suppliers environmental situation in the Komi Republic. of pipe products with internal protective coatings. A set of measures is implemented annually, In particular, bypass pilot testing of alternative protective including protecting pipes against corrosion; coatings for pipes is conducted, with expert appraisals the repair, renovation, and technical re-equipment issued on product compliance with PJSC LUKOIL technical of pipelines; and corrosion monitoring. requirements. In 2019 more than RUB 7 billion was allocated For example, it was initially planned to use an internal to environmental protection measures, and over silicate enamel coating for a water pipeline at the Yarega RUB 4 billion alone was spent on repairing and replacing field. Based on recommendations issued by the Network pipelines in the Komi Republic. To mitigate technological Group’s experts, pilot testing of new types of coatings and environmental risks, pipes with shorter life expectancy were performed over two years to determine the most are replaced by corrosion-resistant pipes (made of steel reliable solution. As a result, an alternative option was with internal and external anticorrosion coating). In 2019 selected. PermNIPIneft recommended using the Sigmaline corrosion-resistant pipelines made up 24.4% of the total 2,500 epoxy phenolic coating, with a guaranteed service length of LUKOIL-Komi pipelines. At the same time, life of at least 10 years vis-à-vis quality and material the speed and volume of pipe replacement depends conformity. Replacing the internal protective coating on the technical condition of pipelines, and an independent at this facility allowed LUKOIL-Komi to reduce capital expert organization performs diagnostics and determines expenditure on the construction of a water pipeline the remaining service life of pipes. Inadequate sections by over RUB 266 million, while at the same time boosting are subject to prompt repair or renovation; as a result, the operational reliability of the facility. the number of failures declined in 2019. Overall, the replacement ratio of infield pipelines was 3.2% Complaint management in 2019. Pipelines with inhibitor protection comprises 29% of the total length of pipelines. The number of personnel LUKOIL Group has a Social Code in place which sets forth involved in the maintenance processes of chemical obligations related to interacting with local communities injection skids and monitoring corrosion inhibitor for field and indigenous peoples. pipelines rose. At key stages of projects LUKOIL holds consultations In 2019 the Company also elaborated comprehensive with residents whose interests may be impacted organizational and technical measures to reduce by corporate plans. Various communication channels social and environmental risks in the Komi Republic. are used for this purpose, including public hearings The implementation of the measures is scheduled on projects, personal meetings between LUKOIL Group management and specialists and residents, 92 ABOUT CORPORATE CLIMATE SAFETY ENVIRONMENTAL OUR SOCIETY THE COMPANY GOVERNANCE CHANGE PROTECTION EMPLOYEES LUKOIL GROUP ENTITIES OPERATING IN THE KOMI REPUBLIC LLC “LUKOIL-Komi” − exploration LLC “LUKOIL-Ukhtaneftepererabotka” and oil production on the territory (municipality of the city of Ukhta) - the oldest of six municipalities: Usinsk, Ukhta oil refinery of the Russian industry. and Vuktyl urban districts, as well as Pechora, Sosnogorsk and Izhma municipal districts. and a permanent hotline to interact with the public. In 2019 the Company continued to operate The opinions of local residents are taken into account when its hotline, including coverage of environmental safety deciding on project implementation parameters. issues. 249 calls were received, although most were unrelated to environmental safety. All reports relating For example, the Company informed Ust-Usa village to the environment were verified, and no violations residents about the construction of an exploration well of environmental safety standards were identified. at the West Usinskaya facility in 2019. The public opposed these plans on account of the proximity of the site LUKOIL-Komi liaises with active public and national to settlements. Following consultations, it was decided organizations, including Komi Voityr, the movement to move the construction site and in addition to hold of the Komi-Izhemtsi ethnical group Izvatas, Rus Pechorskaya, regular meetings with an advocacy group of residents and the Pechora Rescue Committee. Cooperation to address a wide range of social issues faced by local agreements are concluded annually with a number of these villages. organizations and support is provided to their projects. Furthermore, LUKOIL-Komi representatives participate Another example concerned discussions about a disposal in social movement assemblies and conferences. site for the Shchelyayurskaya group of fields owned by LUKOIL-Ukhtaneftegaz. In 2018, during public hearings, As part of the Social and Cultural Projects Competition, Izhemsky District residents objected to the construction Komi residents are given an opportunity to implement of the site. In 2019 representatives of the district and public environmental initiatives related to the conservation organizations (including Pechora Rescue Committee of the environment and natural objects, and environmental representatives) visited a similar facility, an oil sludge education and culture. For example, 2019 saw the successful disposal site at the Zapadno-Tebukskoye oil field. implementation of the project “Clean River – Clean City” to clean the banks and bed of the Chibyu River, using Visitors were shown around the site and informed a grant from LUKOIL-Komi. about how it operates, and all their questions were answered. The Pechora Rescue Committee representatives were able to satisfy themselves that the site is a modern and high-tech facility that will neutralize oil sludge without any negative environmental impacts. The representatives left positive feedback about their trip in social networks. For example, see the Environmental Protection group 93.
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