AIR PROTECTION AND CLIMATE CHANGE PREVENTION

The Company operates a developed in-house infrastructure for utilization of associated petroleum gas. 30 small-scale power generation facilities that contribute to the reduction of gas flaring, 23 low pressure separation compressor stations, and one gas compression and treatment unit. These units can fully extract the gas saturated with heavy hydrocarbons from the oil emulsion. Along with construction and operation of the small-scale power generation facilities, “Surgutneftegas” PJSC effectively applies other areas of rational use of associated petroleum gas. Associated petroleum gas is used at the gas processing plant, is injected in oil bearing horizons to maintain reservoir pressure, is used in all the areas of the Company’s operations as fuel for in-house production needs and in various equipment. APG flaring is done mainly to maintain pilot burners needed for the safe operation of field facilities.

In order to decrease air pollutants emission to the atmosphere, the Company carries out measures on reduction of emissions during the periods of adverse meteorological conditions, reductions of hydrocarbons losses, improvement of energy efficiency of production. Operating setup of fuel-fired equipment is performed, operational effectiveness of gas treatment units is controlled, their inspection, current repair and overhaul are carried out on a regular basis. Environmentally friendly fuel is used, motor vehicle fleet is renewed, fuel efficiency of motor vehicles is increased. The Company keeps records of substances which destroy the ozone layer, transits the equipment to coolants which are safe for the ozone layer. Measures aimed at prevention of spills of oil and oil products are carried out. The Company performs industrial control of air pollutant emissions at all units.

Implementation of air protection measures

Indicator 2018 2019 2020

APG utilization, %

99,56

99,56

99.52

Construction of air protection facilities, RUB billion

1,9

2,7

0,9

Specific pollutant emissions into the atmosphere per tonne of produced hydrocarbons, kilograms per tonne

1,98

1,85

1,98

In 2020, the investments of “Surgutneftegas” PJSC in construction and technical reequipment of facilities for APG utilization amounted to 50% of the total volume of capital investments in construction of environmental facilities. The gas pipelines network was constructed in KhMAO—Yugra and the Republic of Sakha (Yakutia).

As the result of steady and constant carrying out of air protection measures, implementation of the program on construction and upgrading of APG utilization facilities, “Surgutneftegas” PJSC, over the years, demonstrates a sustainable mitigation of emissions of pollutants to the atmosphere. Pollutant emissions were decreased by 3% compared to 2019. The specific indicator of air pollutant emissions into the atmosphere is kept at the level of less than 2 kg per 1 tonne of hydrocarbons produced.

A comprehensive approach to reduce a man-made impact on ambient air, preservation of natural ecosystems and rational use of natural resources allow the Company to significantly minimize the negative impact on the atmosphere as a result of production operations of “Surgutneftegas” PJSC.

The Company’s activity aimed at climate change prevention

“Surgutneftegas” PJSC shares the worldwide concern about global climate change issues and realizes the possibility of ecosystems disturbance, risks of natural disasters, hazards to people’s health and life, uncontrolled reduction in biodiversity of the planet and other consequences of climate change.

In order to counteract global processes the Company takes into account its own risks related to this worldwide problem and seeks to reduce its environmental impact as much as possible, decrease the impact of all stages of the production activity on climate change by facilitation of considerable efforts to reduce greenhouse gas emissions.

“Surgutneftegas” PJSC prevents >30 million tonnes (in CO2-equivalent) of greenhouse gas emissions into the atmosphere annually due to the high level of efficient APG utilization.

In order to prevent global climate change and reduce greenhouse gas emissions the Company introduces a range of measures as follows:

carries out pre-engineering work, design and examination of project documentation in environmental safety and environmental impact assessment;

constructs facilities for utilization of associated petroleum gas, and provides their technical reequipment, reconstruction and upgrading;

develops the system for greenhouse gas emissions recording and control;

implements programs for improved energy efficiency and resource saving;

increases the efficient use of associated petroleum gas;

takes measures to reduce hydrocarbon losses and increase its processing;

applies effective technologies for detecting and reduction of hydrocarbon emissions into the atmosphere;

looks for effective approaches to safe greenhouse gas utilization;

expands areas of low-carbon energy resource use such as gas, renewable resources;

produces and consumes eco-fuel;

performs regular operating setup of fuel-fired equipment;

transits equipment to electric drive;

takes comprehensive environmental safety measures to prevent accidents;

takes measures to reclaim forests.