Key areas of environmental activity

In order to assure the successful implementation of the provisions of the Company’s Environmental policy, «Surgutneftegas» PJSC prioritizes and makes its own business units to strictly adhere to the comprehensive measures of the Ecology program which is aimed mainly at systematic planned mitigation of the industrial impact upon the environment.

Principal areas of the Ecology program:

  • construction of environmental facilities;
  • ensuring environmental safety of oil production facilities, including pipelines;
  • protection and rational use of land;
  • air protection;
  • protection and rational use of water resources;
  • industrial waste decontamination and utilization;
  • monitoring of natural environment components and control over production facilities operation;
  • environmental training and education of the personnel;
  • implementation of «green office» principles in each administrative building of «Surgutneftegas» PJSC;
  • research studies in the field of environmental protection.

The Company annually ensures a steadily high level of investments under the Ecology program. For the last five years, «Surgutneftegas» PJSC spent over RUB 97.4 billion on environmental protection measures and environmental safety.

In 2017, investments of «Surgutneftegas» PJSC in environmental protection totaled RUB 21.1 billion. In 2018, the Company is planning to spend RUB 17.6 billion on these purposes.

In 2017, payments for the negative environmental impact amounted to RUB 51.3 million, including above-limit payments — RUB 57.3 thousand (0.1%). In particular, above-limit payments for disposal of consumer waste generated by Yakutsk Representative Office of the Company are due to the lack of landfills included in the state register of waste disposal facilities and enterprises performing licensable type of activity on waste management, established since 01.07.2016 in the area of Yakutsk. Above-limit payments for excess air pollutant emissions were caused by the use of diesel power plants in order to maintain operation of health resorts of the health trust «Surgut» during unplanned power outages in Krasnodarsky Krai.

The increase of payments for the negative impact in 2017 without an increase of pollutant emissions (discharges), volume of waste disposed is due to changes in the payment record keeping system since 1 January 2016, introduction of requirements on quarterly advance payments and changes in application of additional rates when calculating the amount of payment for a negative impact.

Environmental facilities and equipment availability

«Surgutneftegas» PJSC having the best available technologies ensures rational use of associated petroleum gas, recycling of wastes, drilling waste utilization and sludge pits reclamation. To carry out environment-related activities the Company uses a large fleet of machinery and equipment and periodically updates it.

Among the assets, which ensure the environmental safety of the production are:

  • gas processing plant;
  • 23 gas turbine power plants and 7 gas reciprocating engine power plants (GTPP, GREPP);
  • compressor station for gas injection;
  • 2 gas processing units;
  • 111 initial water separation units (IWSU);
  • 6 centers for oily soil decontamination;
  • 3 centers for sludge decontamination with sludge storage ponds, units for oily fluid recovery and Heater-Treater three-phase separators;
  • 4 mobile units for tank cleaning and initial oil sludge treatment, including three-phase centrifuges;
  • 33 single and multiple cell sludge storage ponds with a total capacity of 81 thousand cubic meters;
  • 10 units for thermal oil sludge decontamination with a total capacity of 70 thousand cubic meters per year;
  • 4 landfills for disposal of solid household and industrial wastes designed to accommodate production and consumption waste with a total capacity of 1,151 thousand cubic meters;
  • 24 mobile Forsazh units for thermal decontamination of solid oily waste with a total capacity of 17.28 thousand tonnes per year;
  • units for shredding waste paper and non-returnable plastic containers with a capacity of 1,150 kilograms per hour and 50 kilograms per hour respectively;
  • a tire recycling plant for recycling worn-out tires and inner tubes with a capacity of 5 thousand tonnes per year;
  • a workshop for application of anti-corrosion coating on pipes and pipeline fittings with a capacity of 720 kilometers of pipes and 15 thousand fittings (in a single-shift mode of operation) per year.

A high level of environmental safety of production in the whole territory of the Company’s operation, including new regions, is ensured by sustainable financing of environmental protection measures.

The annual ongoing costs of «Surgutneftegas» PJSC for environmental protection are made up of a number of different costs, including those of repairing and replacing pipes, protecting oilfield equipment and facilities from corrosion, preventing equipment failures and elimination of their consequences, preventing oil spills and their cleanup, air protection, industrial wastewater treatment, waste management, land reclamation, environmental monitoring and research work.

Environmental safety of oilfield facilities

Accident risk mitigation measures

«Surgutneftegas» PJSC implements a long-term comprehensive program on increasing the operational reliability of the field pipelines, which results in a high level of environmental safety in the Company.

Reduction of accident risks at the oilfield pipelines is ensured by implementation of innovative technologies and diagnostic methods, timely preventive measures, replacing of pipelines, creation of modern methodology and technical regulatory basis that regulates these issues.

«Surgutneftegas» PJSC takes a systematic approach based on package solutions for optimized quality control of construction and safe maintenance of field pipelines. The Company’s spheres of activity to increase the operational reliability of the field pipelines are:

  • pre-engineering work, design and examination of project documentation in terms of environmental safety;
  • destructive and non-destructive receipt inspection of tubular goods (pipes, fittings);
  • dehydration of well production in initial water separation units;
  • use of pipes with external and an internal anti-corrosion coating;
  • pipeline inhibitor protection;
  • field pipeline corrosion monitoring;
  • regular ground and air patrolling and inspection of field pipelines;
  • timely routine repairs and overhaul of field pipelines;
  • conducting hydraulic calculations for field pipeline systems;
  • control over pressure and volume balance of pumped fluids;
  • creation and maintenance databases, computer modeling of the existing systems of field pipelines for the purpose of their optimization.

Receipt inspection of pipes

Performance reliability of field pipeline systems is important in each phase of operation starting from receipt inspection and compliance verification of pipes. Receipt inspection is conducted for 100% of pipes for oil and oil and gas pipelines of «Surgutneftegas» PJSC.

To ensure environmental safety of the pipelines and maintain a high level of pipes quality, the Company performs receipt inspection of the pipes using destructive and non-destructive methods. In 2017, 533.3 kilometers (32.4%) of pipes underwent receipt inspection by destructive testing with 5.04 kilometers (0.3%) of pipelines non-compliant with the requirements of technical specifications.

Field pipeline corrosion monitoring

Pipeline corrosion monitoring, i.e. constant control over risk factors, causing corrosion of field pipelines, allows the Company to make highly accurate assessment of the technical condition of a pipeline.

The main reason for loss of integrity of field pipelines is their corrosive wear due to aggressiveness of transported liquids. Among other risk factors — the pumping mode of well production, temperature and the condition of pipeline metal.

The most accurate data on the status of field pipelines in the operating conditions can be acquired through aggressiveness monitoring of transported mediums, pipeline pigging, thickness gauging.

Corrosion monitoring of field pipelines «Surgutneftegas» PJSC is performed at 728 points of control. This method is a tool for managing the efficiency of anti-corrosion measures taken that allows the Company among other things to monitor and adjust inhibition schedule in time.

Based on the pipelines condition data the Company organized routine repairs and overhaul. In 2017, 579.9 kilometers of pipelines underwent overhauls.

Inhibitor protection

Development of the system of pipeline integrity management by «Surgutneftegas» PJSC allowed us to decrease the risk of pipeline failures by 10 times. Corrosion and comprehensive inhibitors are used to increase the reliability of pipelines and mitigate the risks of corrosion damage to pipes.

The Company implemented the system of process chemicalization which includes program-targeted planning and management as well as a system for the admission of chemical products for use. In 2017, 2,702 tonnes of inhibitors and multifunctional reagents with complex properties were used to protect 2,488 kilometers of field pipelines from corrosion. Corrosion inhibitors are injected by 411 chemical injection units which are equipped with devices for automatic control of operating parameters with production processes data transfer to ASU TP «OKO-TsITS OGPD».

Receipt inspection of corrosion inhibitors is made by means of infra-red spectrometry. The quality of all lots of corrosion inhibitors received during the year conformed to the standard specimen. Development of the system of pipelines integrity management ensures environmental safety of their operation.

Use of pipes with an internal anti-corrosion coating

The use of pipes with improved corrosion resistance and especially — with an internal anti-corrosion coating is the strategic way to implement measures aimed at minimizing environmental risks.

Timely application of pipes and fittings with internal protective coating in the pipeline system is currently beyond question. Since 2013, «Surgutneftegas» PJSC has been implementing programs of capital construction, reconstruction and overhaul of oil and gas pipelines using only pipes with anti-corrosion coating.

The Company employs goods produced by its own plant that applies internal anti-corrosion polymer coatings on pipes and pipeline fittings. The production is arranged taking into the account the leading present-day practices using new high-tech equipment and best materials.

Since the commissioning, the Company has produced more than 1,700 kilometers of pipelines and 47,000 fittings with an internal coating. In 2017, due to production optimization the Company managed to increase the amount of goods produced: the Company produced 619.1 kilometers of pipes and 27,675 pipeline fittings. To protect welded pipe joints having an internal anti-corrosion coating, «Surgutneftegas» PJSC uses protective sleeves of its own production. In the reporting year, the Company produced more than 67,000 of those. More than 1,700,000 meters of pipes with an internal anti-corrosion coating is produced at the Company’s own plant using the cutting edge technology and advanced materials.

In 2017, «Surgutneftegas» PJSC introduced 796.5 kilometers of pipelines with internal anti-corrosion coating, including 471.6 kilometers — according to the capital construction plan, 324.9 kilometers — as part of the overhaul program. The total amount of introduced pipelines is about 3,500 kilometers representing 44% of the total length of the Company’s oil and gas pipelines.

By the end of 2018, the amount of pipelines with internal anti-corrosion coating introduced by the Company will exceed 4,200 kilometers.

Dehydration of oil in IWSUs

Transportation of dehydrated oil is an effective method of corrosion protection. For 10 years, the Company has been using initial water separation units at the booster pump stations that are based on Heater-Treater three-phase separators.

The use of this equipment is crucial at watered, marsh areas with the huge amount of water courses which are typical of the Company’s areas of operation. The territory where «Surgutneftegas» PJSC operates is characterized by a high level of marshiness: at different sites it varies from 40% to 90%.

Dehydration of oil is performed at 111 booster-pump stations with initial water separation units, 105 of which are equipped with Heater-Treater separators. Preliminary separation of produced formation water at IWSU, which is recycled in the system of reservoir pressure maintenance, helps reduce the length and diameter of tank water pipelines, excluding the corrosion-prone operation mode of pipelines, cuts accident risks and diminishes a threat of pollution of gathering grounds and water bodies.

Due to preventive measures in 2017, the Company managed to perform accident free operation of its field pipelines.

Apart from accident risk mitigation, the use of initial water separation units allows the Company to reduce the specific quantity of metal for pipelines and energy consumption during oil pumping at field pipelines, save and rationally use the water resources.

Protection and rational use of land

Land reclamation and forest protection

For many years, «Surgutneftegas» PJSC has been in good standing in terms of land reclamation and land parcels return to the Forest Fund of the Russian Federation. Their timely return is made annually in accordance with programs and project documentation of the Company.

An ecosystem approach allows the Company to consistently achieve high results during technical and biological reclamation of used lands. The technical stage of disturbed lands rehabilitation involves agrotechnical measures to make a layer of soil with properties favorable for biological reclamation, i.e. a complex of revegetation measures to restore the fertility of disturbed lands.

The Company’s costs for protection and reclamation of lands, surface and ground water reserves exceed RUB 2 billion.

Pollution prevention and elimination

The priority direction of land protection is prevention of land from oil and oil products contamination. Timely elimination of such pollution consequences, if necessary, is done using the Company’s own resources.

The Company ensures instant readiness of forces and means for elimination of possible consequences of accidents and incidents, oil and oil products spills elimination and the following rehabilitation of polluted land. The complex of high-performance equipment includes:

  • 136 oil skimmers designed to operate in various oil viscosities and under diverse weather and climatic conditions;
  • 4 skimmer boats for skimming of oil on the surface of rivers and lakes, including
  • 6 shallow water trimarans;
  • 93 self-contained high-pressure pumps;
  • 12.78 kilometers of easy-to-assemble aluminum pipes;
  • 20.48 kilometers of fast deployable mobile booms both lightweight and reinforced made of frost-proof materials for onshore protection;
  • 15.17 kilometers of absorbent booms;
  • 45 mobile tanks for temporary oil storage;
  • 22 sprinklers for biological agents and bacteria treatment;
  • 9 units for producing thermally exfoliated graphite absorbent (U-SRTG) with the capacity of 30 kilograms per hour;
  • 31 multifunctional floating platforms equipped with an attached system for water bodies and inshore zone integrated treatment;
  • 32 vacuum dump trucks and 51 tank trucks for oil products pumpdown and transportation from the areas of oil spills;
  • 147 dump trucks for oily soil transportation;
  • 24 all-terrain vehicles with excavators and other equipment.

The oil spill prevention and response system of the Company is unique and meets international environmental safety standards for the oil industry.

Air protection

«Surgutneftegas» PJSC is the Russian fuel and energy industry leader in terms of efficient utilization of associated petroleum gas. Air protection measures are aimed at mitigation of a negative impact of production processes. It is achieved through reduction of emissions of pollutants to the atmosphere, particularly due to rational use of associated petroleum gas.

At present, the Company ensures a record level of associated petroleum gas utilization of more than 99%, it was reached in 2012. The milestone of 95% was successfully passed in 2008. The Company zealously develops the ways of APG processing and its further utilization for electric power generation reaching a significant reduction of pollutant emissions to the atmosphere in the amount of 3 million tonnes per year.

Protection and rational use of water resources

The Company performs surface and ground water abstraction for industrial, technological, economic and domestic needs in strict compliance with the regulatory documents, and strives to reduce the fresh water consumption. The water protection measures are aimed at resource saving, rational water use and prevention of water bodies pollution.

Due to the implemented package of measures, «Surgutneftegas» PJSC manages to minimize the impact on the water bodies. According to the results of monitoring of the environmental components at the Company’s license blocks, the impact on the environment is described as acceptable.

Waste management

«Surgutneftegas» PJSC applies innovative technologies that allow waste utilization, decontamination and processing. The Company manages to utilize and decontaminate 100% of generated oil sludge, used oils, tires with fabric and metal cords in its production process.

A comprehensive approach to solving waste management tasks, technologies and equipment employed allow the Company to maintain a low specific factor of waste generation and disposal (0.013 tonnes and 0.004 tonnes per 1 tonne of produced oil respectively).

Sludge pits reclamation

«Surgutneftegas» PJSC provides effective restoration of ecological functions of disturbed lands occupied by sludge pits by means of enhanced scientifically and economically proved technologies of reclamation. One of the most important priorities of the corporate Ecology program is to reduce the negative impact of drilling wastes disposed in sludge pits.

Based on the results of a long-lasting experimental scientific research carried out by the Company together with v. N.Sukachev Institute of Forest SB RA, a unique technology of so called «forest rehabilitation» has been developed and is widely used; it involves reclamation of sludge pits without backfilling. The project document called «Construction, running and reclamation of sludge pits at the license blocks of „Surgutneftegas“ PJSC in the territory of the State Forest Fund of the middle taiga subzone in Western Siberia» has received approval from the State Environmental Expert Commission.

In the reporting year, 21 sludge pits were successfully reclaimed using this method. Forest rehabilitation enables to make full use of the natural self-healing potential, stimulates the natural process of overgrowing of sludge pits taking into account geological and climatic conditions of the region and also natural processes of transformation of oil sludge into soil forming material.

High effectiveness of the method is proved by the results of research of phytocenoses formed on the reclaimed sludge pits. Such vegetation communities — that include the Red Book species — surpass dominating phytocenoses in productivity and biological diversity.

Numerous advantages of the forest rehabilitation technology used by «Surgutneftegas» PJSC in comparison with other disturbed lands reclamation methods arouse reasonable interest from other largest Russian oil and gas producing companies.

Monitoring of natural environment components and control over production facilities operation

There is a production environmental monitoring system established in «Surgutneftegas» PJSC, it provides constant monitoring of the environment and assessment of its changes allowing the Company to timely identify the adverse changes that happen under the influence of anthropogenic and natural factors.

The observational network of environmental monitoring has been operating at the Company’s license blocks for many years. Now the area that has been monitored by is around 150 thousand square kilometers. An extensive database has been developed that provides information about contamination of environmental components of license blocks prior to the commencement of their commercial development (initial (background) contamination) and after the fields are put in development, along with local environmental monitoring.

Industrial environmental control

In the Year of Ecology and specially protected natural reservations, the Ecological Council started functioning in the Company; it is chaired by First Deputy Director General of «Surgutneftegas» PJSC who supervises the entire environmental management system of the Company. Industrial environmental control (IEC) is its integral part.

The Company has the effective vertically integrated two-level system of IEC. The tasks of Surgutneftegas Ecological Council include reduction of the environmental risks, mitigation of an environmental impact of production processes, and, certainly, rational use of natural resources. One of the main functions is the environmental assessment, including the predictive evaluation, of the planned operations of the Company in specially protected natural reservations.

The industrial environmental control activities are arranged annually according to the plan with mandatory preparation. Industrial control measures in the field of waste management can be either special-purposed or the part of complex measures ensuring compliance with the environmental legislation as a whole. Inspectorial and ecoanalytical control are exercised according to the technological normative documents of «Surgutneftegas» PJSC.

The Company oversees compliance of the inspected facilities with the natural environmental legislation, ecological safety standards and in-house standards as well as adherence to waste management regulations, ecological, sanitary epidemiological rules and guidelines of waste management provided by its internal documents, instructions of waste management and Draft Regulations on Waste Generation and Limits on Waste Disposal. Also, Surgutneftegas makes proposals on required actions and works and their deadlines and issues reports and minutes on sample collection and ecoanalytical control results.

Fulfillment of proposals and instructions is controlled without preliminary notification of the person to be inspected. The Company monitors fulfillment of the instructions every month. The results obtained are reported at the summing-up meeting.

IEC results are accounted, analyzed and summarized to be further used in implementation of industrial control over waste management.

Environmental education and professional training of employees

Environmental education and training of employees are important aspects in maintaining the level of environmental safety of production, they contribute to the awareness and acceptance by the Company’s employees and contractors of the principles of respect for the environment and natural resources, and strict compliance with the requirements of the environmental legislation of the Russian Federation.

«Surgutneftegas» PJSC encourages the personnel to develop their competence by participating in professional skills competitions «Best-in-Profession». Environmental protection specialists also take part in these competitions. Their goal is to exercise control over all protection requirements during production as well as compliance with regulations.

Avoidance of accidents and defects, high-quality work, excellent performance indicators in the field of environmental safety of the Company’s production facilities are among the criteria for selecting winners of economic competitions held among teams of oil and gas production shops as well as among well overhaul and workover crews.

To ensure regular professional training of its employees in handling wastes of hazard classes I–IV, there are professional training courses developed by «Surgutneftegas» PJSC for its managers and specialists responsible for decisions on business activities and other issues as well as workers admitted to manage wastes. In 2017, 409 Company’s employees improved their skills in the abovementioned area.

The Company continues training of specialists in ambient air protection. Sixty-two employees had training under the course of provision of environmental safety by managers and specialists of the environmental departments and environmental control systems.

As part of implementation of the agreement on cooperation between Surgutneftegas and the Center for preservation and restoration of wetland ecosystems of the Institute of Forestry of the Russian Academy of Sciences, a workshop on the spatial analysis of environmental risks of the optimal location of oil production facilities in SPNR was conducted using modern information technologies. Twenty-four specialists of «Surgutneftegas» PJSC attended the workshop.

In the reporting period, the Company’s business units and headquarters took part in clean-up activities in the territories of oil fields located near populated areas and supported single Tree-Planting Day. Thus, green ashes and Canadian maples were planted in Molodezhny City Park, composed mostly of birch trees, and the avenue of fir trees were planted in Za Saimoy Park. With an active support of Surgutneftegas, Federal State Budgetary Institution «Yugansky» State Reservation» organized in Surgut a large-scale planting of fir trees as part of the «100 years — 100 trees» event to celebrate the anniversary of the Russian System of Special Protected Natural Areas.

In the Year of Ecology, «Surgutneftegas» PJSC arranged dozens of environmental protection actions: planting of greenery, flowers, landscape improving, cleaning of city parks and squares, sports facilities, forests and other sites adjacent to the settlements where the Company’s enterprises are based.

A new alley of flowering shrubs planted in honor of the 40th anniversary of the foundation of «Surgutneftegas» PJSC has become a real decoration of Kedrovy Log Park (Surgut).

Environmental education of personnel is an essential part of large socially significant work. Numerous employees of the Company participate in implementation of environmental initiatives, often bringing along children to the events, with an understanding of importance of forming in families a system of environmental knowledge from the earliest age.

The Company continues systematic work to upgrade the skills of personnel in the field of environment protection and environmental safety aimed at implementation of the Environmental policy of «Surgutneftegas» PJSC.

Implementation of «green office» principles

«Surgutneftegas» PJSC maintains ecostandards that enable to cut costs on upkeeping office premises. Implementation of «green office» principles in administrative buildings of the Company is one of the Ecology program areas to support reduced consumption of natural resources and electric power and adequate waste management.

The «green office» principles are implemented through the following activities:

  • usage of modern energy-saving (LED, electrodeless, fluorescent) lamps and spotlights in indoor and outdoor lighting systems;
  • usage of electronic ballasts in fluorescent spotlights;
  • usage of programming units and motion sensors in indoor lighting systems and daylight sensors and automatic switches in the outdoor lighting;
  • optimization of operating mode of electrical equipment and heat consumption of buildings;
  • replacement of air conditioners with multi systems;
  • implementation of energy efficient pumping modules and ventilators;
  • usage of power filters at workplaces to switch off simultaneously several units of equipment after completing work;
  • implementation of metering devices, water flow and heat consumption regulators.

The Company utilizes the electronic document flow (the DIRECTUM system) which has reduced the number of printed documents, including color-printed ones. Default double-sided printing is automatically set for all printers. This makes it possible to significantly diminish the stationary paper consumption.

The paper used by the Company’s headquarters and business units as well as packing board and other wastes related to stationery and paperwork are collected and disposed to be processed by its own unit. Shredded and compressed paper wastes are valuable recyclable material which is transfered to specialized enterprises under the contracts for its further use.

Centralized work on the collection of waste paper, the exclusion of its burial is conducted in all business units of «Surgutneftegas» PJSC, it covers all administrative buildings of the Company and is aimed at implementation of «green office» principles.

Biodiversity conservation

The Biodiversity conservation program, as part of the Ecology program, includes monitoring of biodiversity indicator species in the vicinity of production facilities of the Company, restoration of aquatic biological resources, forest rehabilitation activities and scientific research.

Leading experts of Lomonosov Moscow State University and the Institute for Biological Problems and Cryolithozone, Siberian Branch of RAS, have developed lists of key biocenoses indicator species (vascular plants, mosses, lichens, birds, mammals) for Khanty-Mansiysky Autonomous Okrug — Yugra and the Republic of Sakha (Yakutia) where the Company performs most prospecting, exploration and production of hydrocarbons.

More than 36 million young fish (peled, muksun, sturgeon) were released into water bodies in 2017 in order to restore biological resources and maintain biodiversity, «Surgutneftegas» PJSC allocated around RUB 120 million for this. In the course of remediation activities, more than 515,000 pine saplings were planted. Expenditures on this part of the biodiversity conservation program exceeded RUB 13 million.

The Company is among the top three enterprises of the Khanty-Mansiysky Autonomous Okrug — Yugra performing compensatory planting of conifer saplings in terms of the area of plantings among enterprises. «Surgutneftegas» PJSC planted young trees over an area of 140 hectares in 2017, the fact for which the Company received a certificate «Keepers of the cedar forests of Yugra».

Biological monitoring in Numto nature park continued in the reporting year, as well as monitoring of bioresources in the Republic of Sakha (Yakutia) where the Company operates.

Bird protection devices were installed on power lines in Numto nature park in 2017. Bird protection devices are installed on the power supply network facilities in the southern part of the nature park, where earlier during the ornithological researches the habitats of peregrin falcons where discovered. These falcons are a rare bird species requiring a special protection. The work was done under the agreement on cooperation concluded between «Surgutneftegas» PJSC and All-Russia public organization «Russian bird conservation union».

Financing of the biodiversity conservation program equaled RUB 7 billion in the reporting year, the amount of funding for 2018 is planned at the same level.

Support of specially protected natural reservations and other territories with special mode of management

The Company strictly observes the special order of business activities, particularly, when operating within SPNR. It adheres to its Environmental policy which provides for compliance with the rules and customs adopted in the places of residence of the small-numbered indigenous peoples of the North. Our main goal in terms of SPNR is to ensure maximum conservation of indigenous environment, traditional way of life, economic activities and industries of the indigenous population.

Cooperation with Budgetary Institution of KhMAO-Yugra Numto nature park continued in 2017; under the agreement, funds were transferred for the arrangement of an ecological trail, visitor center in Numto national village, and monitoring in the nature park. Grand total of financing under the agreement exceeded RUB 13 million.

In March 2017, Interregional conference «Current state and perspectives of the specially protected natural reservations network in the industrially developed regions» was held in connection with the 20th anniversary of Numto nature park. The conference was arranged by the Government of Khanty-Mansiysky Autonomous Okrug — Yugra and Administration of Numto nature park. Surgutneftegas provided financial support and took an active part in its preparation.

In order to organize joint work to minimize the negative impact of the Company’s business activities on the hydrology of wetlands within Numto nature park and in Uvatsky District of Tyumenskaya Oblast, in 2017, «Surgutneftegas» PJSC concluded an agreement on cooperation with Federal State Budgetary Institution — State Hydrological Institute. The Institute analyzed the net of marsh water drip lines in the area where the Company production facilities are located in Numto nature park and developed the plan of actions to prevent potential disturbances in hydrological regime of the territory. As part of implementation of the agreement with the Center for conservation and restoration of wetland ecosystems of Institute of Forestry of the Russian Academy of Sciences, a spatial analysis on environmental risks was conducted during planning of the locations for oil production facilities in the nature park, recommendations were developed to prevent a possible impact of production facilities of the Company on the marsh ecosystems within the nature park.

There are checkpoints and barrier gates in place along the Company’s field roads in order to protect the facilities of the fuel and energy complex and to limit unauthorized access to places of traditional residence of indigenous people.

In 2017, a customary survey of the territory within the site area of Sacred Lake Imlor was conducted by the representatives of public organizations, regulatory and supervisory bodies and local authorities, which not only resulted in lack of comments on the operation of the Company, but also in a high assessment of the ecological condition of the territory.

The high results have been achieved by the Company through implementation of a number of actions with a view to ensure water and air resources protection and prevent territories from becoming polluted with production and consumption wastes as well as oil spills. In particular, environmental monitoring of the territory is performed, 100% of oilfield pipelines in the lake area have been upgraded, and all the pipelines have an inner coating.

The measures taken ensure trouble-free operation, lower the risk of accidents and incidents and, as a result, preserve game animals and wild-growing vegetation which are the basis of the traditional way of living of the indigenous population.

Research studies in the field of environmental protection

In order to improve the effectiveness of environmental measures and enhance the environmental safety system, the Company collaborates with scientific institutions and public organizations, conducts its own research and appraisal works.

In 2017, a team of scientists from Lomonosov Moscow State University, v. V.Dokuchaev Soil Science Institute and Yugansky State Nature Reserve has been monitoring the territories of oil fields under construction within Numto nature park for the sixth year running. The purpose of the monitoring is to assess the environmental parameters of the territory, to identify ecologically significant factors affecting the biocoenoses, to track the dynamics of ecosystem changes over time and to predict further changes.

In the reporting year, scientists of Surgut State University carried out a detailed expedition study of biota components and performed an ecological and biological assessment of water bodies potentially suitable for use as water pits within Numto nature park.

The Institute for Biological Problems and Cryolithozone, Siberian Branch of RAS, has been performing monitoring of bioresources and cryolithozone within the Severo-Talakanskoye, the Vostochno-Talakanskoye and the Alinskoye fields in the Republic of Sakha (Yakutia) for the third year in a row. Long-term permafrost, surface water hydrobiocenoses, soil cover, flora and fauna were studied to characterize reserves for assessing the current ecological parameters of the territory and to identify trends in the development of the ecological situation in the zone of the probable impact of oil production facilities.

The results of the researches will serve to make management decisions aimed at minimizing the negative impact of oil production facilities on the environment.

«Surgutneftegas» PJSC is one of the leaders in oil and gas industry possessing modern production facilities and technology which allow to constantly cutting-edge implement environmental techniques and rationally use natural resources that is acknowledged:

  • In 2008, «Surgutneftegas» PJSC was awarded the annual prize promoted by the Ministry of Natural Resources and Ecology of the Russian Federation as the Best Environmental Project of the Year;
  • In 2009, based on the analysis of the Company’s environmental activity since 2000 and government statistics for natural resources utilization, water and air pollution, wastes and the area of disturbed lands, the Independent Ecological Rating Agency established by the International Socio-Ecological Union included «Surgutneftegas» PJSC in the top rating of socially and environmentally responsible companies by the results of 2009 (5th position);
  • In 2012 and 2013, «Surgutneftegas» PJSC is acknowledged as the Best Enterprise of the Yugra Energy Sector
  • in terms of environmental protection among the producers with over 5 million tonnes of oil per year;
  • In 2013, «Surgutneftegas» PJSC became the winner in the competition «100 best companies of Russia. Ecology and Environmental Management» and «Contribution to Yugra in the Year of Environmental Protection»;
  • In 2014, «Surgutneftegas» PJSC was the top company in the Environmental Responsibility Rating of Oil & Gas Companies in Russia, which has been organized by World Wildlife Fund (WWF) and Creon energy group.
  • In 2015, «Surgutneftegas» PJSC once again took the first place in Environmental Responsibility Rating of Oil & Gas Companies of Russia issued with the participation of the World Wildlife Fund (WWF) and the National Rating Agency and was recognized as the winner in the regional contest «The best oil and gas enterprise of the Yugra energy sector in terms of environmental protection» in the nomination «Producers with over 5 million tonnes of oil production per year».
  • In 2016 and 2017, «Surgutneftegas» PJSC was among the top three in the Rating of environmental responsible Russian oil and gas companies and took the honourable third place.
  • In 2017, «Surgutneftegas» PJSC won All-Russia contest «Leader of environmental protection in Russia — 2017» in the category «Best environmentally responsible company in oil production industry». Once again the Company won the Environmental Responsibility Rating of Oil & Gas Companies of Russia organized in cooperation with the World Wildlife Fund and the National Rating Agency.