ZERO DISCHARGE – CLEAN SEA 2 6 8 OFFSHORE LUKOIL ECO ZERO DISCHARGE PROJECTS PRINCIPLES PRINCIPLE ZERO DISCHARGE – CLEAN SEA 10 12 14 SAFETY HUMAN MONITORING MARGIN FACTOR DEMONSTRATES… 18 20 24 PLATFORM FISH IN HARMONY REEF SPOT WITH NATURE ZERO DISCHARGE CLEAR SEA ZERO DISCHARGE CLEAR SEA * OF THE CLOBAL OF THE WORLD’S LUKOIL worldwide : CRUDE OIL PROVED OIL LUKOIL: OFFSHORE PROJECT PRODUCTION RESERVES Kravtsovskoe Barents Sea 2013 depth 490 m Baltic Sea territory 594 km² 2004 depth 35 m Pl-858 NORWAY RUSSIA Barents Sea 2016 depth 250 m territory 1432 km² Black Sea 2011 depth 1200 m Barents Sea ROMANIA territory 1000 km² 2008 LUKOIL share in the project is 88% Caspian Sea discovered 2000 depth 13 m RUSSIA production started 2010 Gulf of Mexico 2017 вepth 200 m territory 521 km² Caspian Sea MEXICO discovered 2005 depth 11 m production started 2016 Gulf of Guinea (Atlantic Ocean) Caspian Sea 2014 depth 70 m 1996 depth 50-600 m territory 460 km² territory 860 km² AZERBAIJAN CAMEROON LUKOIL share in the project is 30% LUKOIL share in the project is 10% Gulf of Guinea Gulf of Guinea (Atlantic Ocean) (Atlantic Ocean) 2014 depth 3000 m 2014 depth 2000 m GHANA territory 2009 km² territory 1220 km² NIGERIA LUKOIL share in the project is 18% 3 * data for 2017 ZERO DISCHARGE – CLEAN SEA ZERO DISCHARGE – CLEAN SEA SEA PROJECTS BALTIC SEA ARCTIC REGION The Baltic Sea is where LUKOIL produced its first oil from an In 2011, LUKOIL became the first Russian company to get a qualifying permit offshore oilfield. Kravtsovskoe (D-6) was discovered in 1983 and is for the operation in the continental shelf off Norway as an operator company. now one of the largest oilfields in the Russian continental shelf in Today, the Company is taking part in two offshore geological exploration the southeast part of the Baltic Sea. Oil production is carried out projects in the Norwegian sector of the Barents Sea. from an offshore ice-resistance stationary platform D-6. It is the first Russian oil-producing platform designed and built by Russian design In Russia, LUKOIL built a unique export terminal in the Barents Sea. Its and engineering organizations using state-of-the-art technologies. unique character is primarily due to its natural conditions: the Barents Sea is ice-coated for 247 days a year on average with the ice thickness of 1.25-1.8 m. LUKOIL plans to continue production in the region due to the development of the new oilfields opened by the Company (the principal of which is oilfield D33). OTHER CASPIAN SEA COUNTRIES The North Caspian is one of the key regions of oil and gas LUKOIL was one of the first foreign companies to get access to the production growth. In 1995-2016, the Company opened 10 oilfields Mexican shelf. In 2014, LUKOIL entered into a cooperation agreement with the total initial recoverable oil reserves of 7 billion barrels of oil with the Mexican PEMEX laying out the principles of joint efforts in equivalent. The concept of oilfields development effective to 2030 the area of oil exploration and production. In 2017, based on tender contemplates the construction of 25 platforms and 1.5 thousand results, LUKOIL won the right to enter into a Contract for Block 12 as km of pipelines, running predominantly under the sea surface. The an Operator. In 2018, LUKOIL in consortium with Eni, Italy, has won the first oilfield launched into operation was Yu. Korchagin’s oilfield, and right to enter into a contract for Block 28. in 2016 LUKOIL started the commercial operation of V. Filanovsky’s oilfield. Besides, LUKOIL takes part in offshore projects in Nigeria, Ghana and Cameroon. The projects in West Africa have allowed the Company to From 1996, LUKOIL also takes part in the development of offshore gain experience of deepwater oilfields development. gas condensate oilfield Shah-Deniz in the Azerbaijan shelf of the Caspian Sea. From 2011, the Company has been involved in the exploration of the In 2018, LUKOIL and KazMunayGaz entered into a Principles Romanian sector of the Black Sea. In October, 2015, the drilling of sea Agreement for the Zhenis Block located in the Kazakhstan sector of structure Lira (Trident Block) discovered a large gas deposit. the Caspian Sea. 4 5 ZERO DISCHARGE – CLEAN SEA ZERO DISCHARGE – CLEAN SEA LUKOIL ECO PRINCIPLES ZERO DISCHARGE PRINCIPLE NON-WASTE STRUCTURAL OPERATIONAL The zero discharge principle underpins INTEGRITY LUKOIL’s environmental safety system as TECHNOLOGIES INTEGRITY LUKOIL’s own scientific and technical part of the offshore project implementation. background, as well as its production The zero discharge principle implies absolute infrastructure make it possible to design, prohibition of any production and domestic construct and operate unique multibay waste discharge to the marine environment. offshore fixed facilities compliant with the As soon as the waste is collected and sorted international industrial and environmental out it is transported onshore for waste safety standards. High levels of engineering recycling. The zero discharge principle is reliability are reached thanks to mathematical strictly abided both during exploration modeling of emergency situations and and production drilling as well as during probability calculation techniques of risk commercial hydrocarbon production. management. SPECIAL PERSONNEL INTEGRATED AND TRAINING ENVIRONMENTED The task of LUKOIL specialized corporate training center is to train people to work at MONITORING offshore oil and gas facilities. The skills of The monitoring of human impact on offshore industrial and personal safety are the environment is contributing to the developed by means of unique simulators development of new environmental programs which imitate real-life environment. and the adjustment of existing ones, as LUKOIL Group is consistently maintaining its part of the preventive safety measures. capabilities in terms of emergency situation Satellite, marine, onshore and coastal response. It is ensured by regular common monitoring implies studies of the sea surface, exercises with the Russian Ministry of geological and geochemical, hydrologic and Emergency Situations and hydrochemical observation, hydrobiological the Ministry of Transport, as well as maritime HIGH CONTINUOUS and ornithological observation, analysis of rescue fleet of neighboring countries and meteorological data, control over seismic foreign experts. QUALIFICATION MONITORING conditions, etc. 6 7 ZERO DISCHARGE – CLEAN SEA ZERO DISCHARGE – CLEAN SEA ZERO DISCHARGE PRINCIPLE THE PRINCIPLE OF «ZERO DISCHARGE» and collection 1. SORTING OUT of waste cuttings (sludge) solid industrial waste solid domestic waste oil-contaminated (formation) water drilling waste water drill mud domestic waste water storm drains and onshore 2. LOADING transportation of waste LUKOIL is guided by the zero discharge principle both during exploration and containers are used for solid waste transportation production drilling as well as during each container with drilling sludge receives registry number commercial hydrocarbon production. The and is sealed before transportation standards used by LUKOIL to comply with the liquid waste is transported by tankers «zero discharge principle» as part of offshore liquid waste is pumped out by separate pipelines, which makes its mixing impossible projects are taken as the basis for the HELCOM support vessels have the ice class and the draft suitable for shallow waters (Helsinki Commission) recommendations for the countries operating at the Baltic shelf. 3. WASTE RECYCLING CUTTINGS: stabilized industrial soil, road construction, reclamation, manufacturing of construction materials DRILLING WASTE WATER: technical water, process needs OIL-CONTAMINATED WATER: technical water, process needs DOMESTIC WASTE WATER: water, process needs, watering of vegetation plantations 8 9 ZERO DISCHARGE – CLEAN SEA ZERO DISCHARGE – CLEAN SEA KEY SAFETY FEATURES AND The LUKOIL personnel, ENGINEERING SOLUTUIONS a number of its SAFETY MARGIN subsidiaries and contractors were CUTTING-EDGE GLOBAL ENGINEERING awarded with the RF Government Prize in SOLUTIONS HAVE BEEN INTRODUCED TO Utilization of special cold-resistant steel Science and Technology THE VARANDEY TERMINAL for the structures of the fixed ice-resistant for development and shipping berth. commercial introduction of innovative The Varandey settlement located at the Barents methodological and Sea coast in the Nenets Autonomous Okrug engineering solutions can be regarded as one of the polygons where Double-hulled reinforced ice class tankers. as part of establishment LUKOIL tests its innovative engineering know-how of the oil transportation and technologies. The design specifics of the system in the seas of Varandey oil export terminal were determined Three protection levels and autonomous operation of the the Arctic Ocean. by severe climatic and ice conditions of the Arctic environmental safety system at the shipping berth. Circle region, the peculiarities of permafrost soil (“permanent frost”), high tundra vulnerability, proximity of deer pastures, etc. Steel double-walled containers with extra leakproof The unique facility that has no rivals in the protection at the onshore terminal facilities world, has become the key one as part of the oil (the “glass-in-glass” principle). transportation system at the Arctic Ocean shelf. A special thermal stabilization system of artificially frozen foundation soils down to a 6-m depth under the shore tank pads the onshore terminal facilities (the “glass-in-glass” principle). Reinforced-concrete