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HSE

Safety

RussNeft is one of Top-10 oil and gas companies in Russia in terms of oil production output. Life and health of the Company’s employees, industrial safety, and environmental protection in the areas of production are the major priorities and most important conditions for the successful development of RussNeft business.

Our goal is to achieve a high level of safety, avoid injuries and ensure accident-free operations at production facilities, as well as to continuously reduce the negative impact on the environment.

The basic principles of providing industrial safety, labor protection and environmental protection have been formulated by the senior management and are contained in the Company’s Policy in the field of industrial safety, environmental protection and labor protection.

HSE control system

RussNeft has a corporate control system for HSE, fire, radiation developed on a risk-based approach and covering all types of the Company’s activities and production processes; it is an integral part of the strategic management system and complies with the requirements of the Russian legislation and best industry practices. The corporate control system is aimed at compliance with HSE, fire safety requirements, prevention and response to emergencies.

Assessment of the production risks and HSE requirements shall applied to all the contractors and subcontractors when carrying out activities at the Company’s facilities.

Leadership and safety culture

An important objective for the Company is to develop leadership and strengthen safety culture among employees of RussNeft and contractors. Safety culture is an integral part of the overall corporate culture and business ethics, as well as a basic element of the industrial safety, health and environmental management system.

Key areas for developing leadership and safety culture include:

• involving workers in conscious and active compliance with safety requirements;

• demonstration of safe behavior and commitment to safety on the part of the heads of departments at all levels;

• formation of attitudes, beliefs and behavior among employees focused on the active managing of production and professional risks.

The Company has approved the “Regulations on managing risks and opportunities in the field of HSE,” which includes a mandatory requirement to comply with safety rules when performing work at the facilities of RussNeft.

Measures to prevent spills and accidents

With the purpose of prevention and response to spills of oil and oil products, rapid response and effective interaction between those engaged in emergency rescue operations, all of the Company’s branches have developed and put into effect Emergency Spill Prevention and Response Plans.

In addition thereto, compliance with safety requirements is checked on a regular basis as part of production control and audits of the industrial safety, health and environmental management system. When nonconformities are identified, corrective and preventive action plans are developed and implemented.

Commissions for the prevention and liquidation of emergency situations and ensuring fire safety have been created, which are the coordinating body of the emergency prevention and liquidation system. The commissions consider the entire range of issues related to preventing the occurrence of accidents and emergencies.

To eliminate emergencies, the branches of RussNeft conclude contracts for service and emergency rescue operations with professional emergency rescue teams. All branches of the Company are equipped with means to eliminate and localize the consequences of accidents and incidents, and also have emergency equipment, located directly at production facilities. In addition, contracts are concluded with professional emergency rescue teams to carry out preventive work, work to eliminate gas and water leaks and open fountains, and emergency rescue work related to oil and petroleum product spills. All emergency rescue units are certified to carry out emergency rescue operations.

A high degree of readiness of emergency rescue teams is ensured thanks to constant theoretical training, as well as practical training during regular exercises and training, including the participation of representatives of the Ministry of Emergency Situations.

Eco Management

Company’s Eco-policy has been developed based on the requirements of environmental laws as well on evaluation of ecological risks and includes a large number of measures, aimed at decreasing negative impact on environment from production. Measures are planned for a 3-year perspective, target indicators are set annually.

Evaluation and monitoring

In compliance with the legal requirements and voluntarily, RussNeft evaluates and monitors the level of impact of production activities on the environment at all the life cycle stages at those facilities negatively affecting the environment (hereinafter referred to as FNE).

The Company carries out local environmental monitoring and environmental control during operations, among other things, engaging independent research and scientific organizations, selected on a tender basis taking into account their professional experience.

Air

The implementation of production program activities in the field of air protection is aimed at reducing emissions of pollutants into the atmosphere and rational use of APG.

The emissions reduction is provided through the maintenance and modernization of equipment and installations, control of compliance with technological regulations of production processes, and monitoring the tightness of technological equipment.

In order to maintain a 95% level of gas use, the main areas of production include such processes: as supply of gas to gas processing plants, expansion of the capacity of own electricity generation at gas-piston power plants; commissioning of gas treatment plants, compressor stations, gas pipelines and other facilities.

Reclamation of land and sludge pits

Measures are taken annually to reclaim contaminated lands and sludge pits. In 2023, the Company successfully implemented Sludge Pit Elimination Program, the reclaimed land plots were handed over to the State Forest Fund.

Reducing carbon footprint

The Company's management assumes responsibility for reducing carbon footprint by setting appropriate goals and objectives, allocating necessary organizational and financial resources to achieve them and by monitoring and analyzing the Company's activities in the field of sustainable development.

In order to improve the regulation of greenhouse gas emissions, the Company has been recording the volume of greenhouse gas emissions in the state information system for fuel and energy since 2019.

In 2023, in accordance with new regulatory documents, the Company also submitted a report to the “Energy Efficiency”, registry of greenhouse gas emissions in the state information system of the Russian Ministry of Economic Development.

Currently, the Company has already developed and successfully implemented “Investment gas program to increase the level of beneficial use of associated petroleum gas”, “Program of energy saving and increasing energy efficiency”, “Action plan for reforestation”.

Further development of these programs in the sphere of managing climate risks will reduce the level of APG flaring volume, increase energy efficiency of equipment used in production, treatment and transportation of oil and gas, increase efficiency of the own thermal power generation facilities, which will generally limit the negative impact on environment and reduce carbon footprint.

Participation in environmental campaigns and conferences

The Company regularly takes part in various environmental campaigns, forums, competitions, meetings, round tables and conferences, and annually participates in community cleanups held on the territories where the Company operates. In 2023, the Company took part in the “Garden of Memory” and “Save and Preserve” campaigns, planting seedlings in the Ulyanovsk and Tomsk regions and in the Khanty-Mansi Autonomous Okrug-Yugra.