Environmental and Resources

Policy and management

One of the main business principles followed by Gazprom Neft and its subsidiaries is protection of the environment and natural resources. The Company aims to minimize the negative impact of its operations on the environment.

RUB 3,843.5 million
expenditure on environmental safety measures in 2014

Gazprom Neft's commitments, goals, and priorities for the protection and restoration of the environment are reflected in the company-wide Industrial, Fire, Transport, Environmental, Occupational Health and Safety, and Civil Defence Policy.

The Company's internal documents on environmental safety establish a clear sequence of actions for employees in the various environmental conservation and restoration services. Company employees and contractors must comply with the policy and procedural guidelines.

The Company has in place an integrated environmental management system based on current environmental regulations, environmental management principles, and a process approach. In 2014, the system passed its annual certification audit, confirming its compliance with the ISO 14001:2004 international standard. The following subsidiaries also passed certification: Gazprom Neft-Omsk Refinery, Gazprom Neft-Moscow Refinery, Gazprom Neft-Sakhalin, Omsk Lubricants Plant (a branch of Gazprom Neft-Lubricants), and Gazprom Neft — Ryazan Bitumen Binders Plant. The following joint ventures were also successfully certified: Tomskneft, Slavneft-Мegionneftegaz, Slavneft-Krasnoyarskneftegaz, and Slavneft YANOS.

11,500
 Company employees
and managers underwent environmental safety training in 2014

The Company is developing targeted environmental safety programmes in order to meet the commitments in the policy. Funding for these measures is distributed in accordance with the requirements of Russian legislation based on an environmental safety risk assessment and the need for remediation work. The Company places particular emphasis on regions with environmentally sensitive areas, and areas where there are high environmental risks. In these areas the Company conducts additional studies of the native flora and fauna, performs remediation measures, and conducts research into the rehabilitation of contaminated lands.

When the Company acquires new infrastructure assets, it carries out a comprehensive assessment of the condition of the assets and develops an environmental development strategy for the new project. During reconstruction of existing infrastructure, possible environmental risks are also taken into account. In developing new infrastructure and reconstructing existing facilities, the Company aims to avoid working in protected natural areas and UNESCO world heritage sites.

The Company conducts annual training sessions for subsidiary managers and specialists whose decisions have or may have a negative impact on the environment. In 2014, about 11,500 Company employees and managers participated in the training.

Expenditure on environmental safety, RUB millions
Not including capital construction costs, renovation, and major repair of fixed assets having a positive environmental effect.Breakdown of expenditure on environmental safety measures in 2014
Oleg Nikolaenko
Oleg Nikolaenko Head of HSE Department, Gazprom Neft

Given stricter environmental regulations and the activities of environmental organizations, accumulated environmental problems carry big financial risks. Addressing the legacy environmental issues which have accumulated and developing modern technologies are important factors that contribute to the sustainable development of oil companies.

Crystal Compass award

prirazlomnaya

In 2014, the Prirazlomnaya platform won the national Crystal Compass award in the Best Environmental Project at an Industrial Enterprise category. The award was presented in recognition of Gazprom Neft Shelf’s attention to environmental and industrial safety at the Prirazlomnoye field. An expert council of prominent scientists, public figures, and members of the business community and Russian state bodies chose the winners in the field of national geography, the environment, and the preservation of the natural, historical, and cultural heritage of Russia.

Andrey Vetoshkin
Andrey Vetoshkin Co-Chairman of the Crystal Compass Award Organizing Committee

Our consideration of the Prirazlomnaya oil production project for the award demonstrates the Company's readiness to respond to the public, engage in discussions, and be open about the technological solutions and features of this unique Arctic facility, demonstrating its environmental safety.

Cost of adverse environmental impacts including companies in which Gazprom Neft has a stake, RUB millions
Cost of adverse environmental impacts, RUB millions