Reduction of Adverse Industrial Impacts on the Environment, Efficient Use of Resources

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

Gazprom Neft thoroughly assesses the environmental impact of its planned and current operations subject to all ecosystem factors and the particularities of these systems – vegetation periods, spawning seasons, and animal migration.

The Company strictly adheres to the environmental laws and regulations and internal environmental standards, continuously assesses industrial environmental risks, implements best international practices and ensures the openness and transparency of its operations. Gazprom Neft carries out its environmental activities as part of the programmes aimed at reducing environmental impacts. The latter include programmes for waste management, remediation of affected and contaminated land, environmental monitoring, equipment upgrades aimed at reducing adverse environmental impacts, and industrial environmental control programmes.

Gazprom Neft runs an Integrated Environmental Management System that had a certification audit conducted in 2013 and was declared in conformity with ISO 14001:2004 international standard. Upon completion of the certification, the Company obtained:

  • ISO 14001:2004 certificate with international accreditation by RvA, a member of IAF (International Accreditation Forum);
  • ISO 14001:2004 certificate issued by IQNet (International Certification Network).

Subsidiary certification will be the next stage of environmental management development in the Company. In the reporting year, ISO 9001 and ISO 14001 certificates were issued to Gazprom Neft-Sakhalin, integrated management systems of Gazprom Neft-Omsk Refinery and Gazprom Neft-Moscow Refinery were successfully audited for compliance with ISO 9001, 14001 and OHSAS 18001 standards.

In 2013, the Company conducted a comprehensive environmental examination at Gazprom Neft-Omsk Refinery and Gazprom Neft-Moscow Refinery to assess the facilities’ industrial impacts on the environment, carry out an environmental audit and identify economic and environmental risks. Based on the resulting findings, the 2025 Refinery Environmental Development Programmes were devised. These programmes envisage a set of measures to reduce air emissions, ensure legacy waste and contamination management, bring the discharges into compliance with quality requirements, reduce water consumption and disposal, and enhance the environment management system.

In 2013, Gazprom Neft-Moscow Refinery among others was awarded by the Moscow Government within an environmental contest for its switchover to production of Euro-5 motor fuels. According to the contest panel, this fact enhanced the environmental situation in the city. The refinery started producing the new fuel in spring 2013, and in summer, all Company plants switched to the production of Euro-5 fuel, 2.5 years ahead of the Russian Technical Regulations’ deadline. In addition, Gazprom Neft-Moscow Refinery was awarded by the All-Russian Refining Association in the category "Best CIS Oil and Gas Refinery in 2013."

* Net of costs associated with capital construction, retrofitting and repair of fixed assets, which have a positive environmental impact.

Source: Company data

A considerable increase in payments for air emissions was due to APG flaring emission multipliers applied pursuant to Russian Governmental Degree no. 1148 dated 8 November 2012, 24 The Decree, effective from 1 January 2013, sets out the maximum permissible APG flaring and/or dispersion rate at 5% of APG produced."On specifics of fee calculation for pollutant emissions generated by flaring and/or dispersing associated petroleum gas."

According to the Decree of the President of the Russian Federation “On Holding a Year of Environmental Protection in Russia”, 2013 was declared a Year of Ecology by Gazprom Neft. The Company created new measures to reduce its adverse environmental impact, which included over 300 different events.

Social campaigns aimed at landscaping territories of municipal entities were undertaken in locations of operation as part of the Year of Ecology initiative. More than 3,000 perennial bushes and trees were planted, and over 200 flower beds and flower gardens were laid out. Measures were taken to clean water bodies from household waste and sinkers. More than 3 kilometres of the coastline were cleaned. Unauthorised landfills were eliminated; more than 1,500 cubic metres of waste were removed to dedicated landfills.

Source: Company data

Current spend on environmental protection, RUB million

Source: Company data

Improving air quality

The Company develops and implements programmes aimed at gradually reducing adverse air impact, makes an inventory of air emission sources in good time, develops necessary project documentation, monitors air components at supervised facilities (stations), and upgrades equipment to reduce pollutant emissions from air contamination sources.

All Company subsidiaries ran Environmental Safety Programmes. In 2013, the following initiatives were implemented under these programmes:

  • Flaring system upgrade and APG redirection in order to reduce APG flaring emissions (Gazprom Neft-East, Gazprom Neft-Khantos);
  • Installation of aluminium pontoons on reservoirs to reduce HC air emissions (Slavneft-YaNOS, Gazprom Neft-Omsk Refinery);
  • Vacuum-compressor station construction and commissioning (Vyngapurovskoye and Vyngayakhinskoye fields – Gazprom Neft-Noyabrskneftegaz and its branch Gazprom Neft-Muravlenko);
  • Inclusion of gas contamination control stations (sanitary protection zone of Gazprom Neft Moscow Refinery) into the Moscow Unified Monitoring System;
  • Reconstruction of a bitumen plant (Gazprom Neft-Moscow Refinery);
  • Development of AUTN-1 construction project (petroleum product sealed pouring with a HC vapour recovery unit) in the commodity production (Gazprom-Neft-Omsk Refinery);
  • Implementation of an automated truck and rail bitumen loading project (Gazprom-Neft-Omsk Refinery);
  • Reconstruction of Company’s filling stations into a modern high-tech chain; and
  • Installation of automated emission monitoring systems and sample stations (Gazprom Neft-Moscow Refinery).

Gazprom Neft prefers preventive measures when implementing air protection programmes.

Overall emissions from production facilitiesIn total, emissions from companies where Gazprom Neft has a stake are accounted., thousand tonnes

Source: Company data

In 2013, a reduction of pollutant emissions from APG flaring was due to the upgrade of APG flaring systems and their placement under a soot-free regime. Implementation of APG utilisation programmes enabled the Company to reduce greenhouse gas emissions and to close out eight flare stacks as sources of air pollutant emissions. Due to implementation of these measures in 2013, the Company’s overall pollutant emissions decreased by 305,900 tonnes (up 28%) year-on-year. The APG utilisation level in the Company achieved 80% by year-end 2013 (up 14% year-on-year). The Company is an industry leader in terms of APG utilisation growth rates.

Overall pollutant emissionsIn total, emissions from companies where Gazprom Neft has a stake are accounted., thousand tonnes

Source: Company data

Greanhouse gas emissionsIn total, emissions from companies where Gazprom Neft has a stake are accounted., thousand tonnes

Source: Company data

An automated emission monitoring system has now been installed at the Moscow Refinery. Sensors installed on the plant’s funnels provide data on composition of emissions each 20 minutes and allow ensuring compliance with established standards. The data will be transmitted to the state environmental institution Mosekomonitoring. The system also collects data from diesel hydrotreatment, catalytic cracking, sulphur and bitumen production units. Implementation of an automated monitoring will enable the refinery to monitor in real time the compliance with standards and to enhance the air condition management at the factory’s site and nearby residential areas.

Water management

The Company performs laboratory and instrumental monitoring of surface water, groundwater and wastewater, and also assesses bottom sediments of surface waters, water protection areas and coastal territories, upgrades production facilities, reconstructs treatment plants, and ensures well maintenance and repair. EPS facilities conduct non-destructive testing and pipeline monitoring at water crossings, arrange for underwater surveys of the areas in order to enhance reliability of water crossings.

In 2013, as part of water protection activities, Gazprom Neft-Novy Port conducted morphometric research of water bodies and their Morphometric research is a research into the metrics of objects under study: reservoir area, collecting area, water level, mid and max depths, reservoir capacity, length, etc.water protection areas. Gazprom Neft-Moscow Refinery conducted research and determined the best technology for final industrial water purification. Gazprom Neft-Omsk Refinery took further measures to design new treatment facilities. Their commissioning will allow the Company to bring the discharges into compliance with quality regulations.

The Company implements a set of measures aimed at reducing water body and water protection area contamination risks, as well as enhancing the environmental condition of water bodies and improving their coastal territories.

Source: Company data

Source: Company data

Waste management

The Company implements its industrial and consumer waste management initiatives in accordance with Russian laws and regulations, regulatory and procedural guidelines, and international standards.

The Company keeps prime records of waste, determines its properties and environmental hazard class, prepares hazardous waste datasheets, takes measures to obtain necessary permits, submits annual statistical reports on waste management and arranges for ongoing monitoring of waste generation and management, in accordance with the established procedure.

Gazprom Neft ensures the end-to-end servicing and management of its own industrial oil-waste landfills where environment contamination sources are monitored in accordance with dedicated survey programmes. Gazprom Neft employees engaged in waste management activities undergo special training for handling hazardous waste classes 1-4.

The company has an industrial waste management system in place to optimise waste streams, reduce their environmental impacts and economic costs.

The Company operates a programme for the remediation of Gazprom Neft-Moscow Refinery oil-contaminated lands. As part of the programme, measures were taken in 2013 to dispose of oil sludge, liquidate the buffer reservoir and emergency waste pit, remediate oil-contaminated lands within the refinery and the Moskva River protection zone. Since 2013, the Moscow Refinery has been implementing measures to remove decommissioned treatment plants, followed by eliminating oil-containing waste and remediating the released area.

In total, companies where Gazprom Neft has a stake are accounted for.Average annual waste generation, %

Source: Company data

In total, companies where Gazprom Neft has a stake are accounted for.Waste at the beginning of the year, thousand tonnes

Source: Company data

Land use and soil reclamation

The Company takes annual measures aimed at conserving and restoring land resources. Gazprom Neft pays a great deal of attention to the remediation of sludge pits and lands affected by the Company’s operations.

Remediation programmes include an inventory of these areas, assessment of soil contamination, and the selection and implementation of the best reclamation practices. The remediation process comprises measures aimed at removing damaged forest, collecting oil-containing liquid, performing technical and biological rehabilitation. The Company annually assesses environmental renovation measures that include chemical and analytical control of land rehabilitation supported by laboratory data.

Gazprom Neft-Moscow Refinery is focusing its efforts on land protection, since it is located inside the mega-city. For example, measures were taken in 2013 to prevent petroleum products from entering the Moskva River: clay-cement grouting of river-bed soil was performed, geomembranes were created to protect ground waters against contamination, and rehabilitation of the buffer reservoir-adjacent area was completed. Gazprom Neft-Omsk Refinery embarked on an acid sludge management project, followed by land rehabilitation.

In 2013, Gazprom Neft developed a dedicated programme to rehabilitate contaminated lands, sludge pits and treat oil-containing waste in 2014-2016. This programme envisages completing measures aimed at rehabilitating legacy sludge pits, taking a detailed inventory of oil-contaminated lands at fields that have not been examined before, and reducing the area of oil-contaminated lands within the specified timeframe.

As part of the set of land protection measures taken by Gazprom Neft, corrosion inhibitor protection is provided for all pipelines. The Company monitors the corrosion rate of pipelines and inspects their condition. A set of projects to diagnose and service pipelines reduces the number of pipeline ruptures and, therefore, the contamination of surrounding lands.

In 2013, the new rehabilitation methods were tried out in the Arctic area of the Yamal-Nenets Autonomous District. At the biologic stage of rehabilitation, instead of the peat-sand mixture, Gazprom Neft-Novy Port used for the first time grass mats with components selected depending on the soil/ground and climate conditions of the YaNAD. They are an opportunity to restore the top soil in a summer season without laying a rich soil layer followed by seeding additional plants in the coming years, thus considerably simplifying construction and reducing its cost.

The Company relies heavily on innovations in land protection and rehabilitation. In 2013, along with scientists from the Lomonosov Moscow State University, the Company conducted research in two important areas:

  • “Development of an aerobic-anaerobic technology for sub-surface bioremediation of oil-contaminated marshes in the Western Siberia.” This technology will prevent contaminated marsh soils from frequent loosening, while the efficient combination of simultaneous aerobic and anaerobic oil decomposition processes will accelerate the time of oil spill-affected marsh ecosystem bioremediation.
  • “Development of an aerobic-anaerobic technology for bioremediation of industrial land deep contamination.” Due to the soil and ground absorbing capacity, production sites can store a considerable amount of hydrocarbons after available rehabilitation methods have been applied, thus entailing secondary ground water pollution. An alternative land clean-up method can comprise a technology for bioremediation of soil and ground residual deep petroleum-product contamination (after liquid petroleum products are pumped out) based on activation of chemical-driven aerobic-anaerobic hydrocarbon decomposition processes.

In the long run, these technologies will save time and money spent performing reclamation work, while achieving better quality.

Volume of oil-contaminated lands reclaimed, hectares

Source: Company data

Pipeline ruptures, pcs

Source: Company data

Volume of sludge storage reclaimed, pcs

Source: Company data

Work with state, expert and public entities in the field of environmental protection

Gazprom Neft has been actively involved in the process of improving applicable environmental legislation and working out draft laws through interaction with executive and legislative authorities and participation in the Russian Union of Industrialists and Entrepreneurs’ activities.

In 2013, the Company took part in the modification of a number of draft laws. Suggestions were made as to amending the Federal Laws “On Production and Consumption Waste”’,and “On Environmental Expertise”.

The Fourth Environmental Conference “Collaboration with Public Authorities and Organizations” was held by Gazprom Neft in Moscow on 27-28 November 2013. It was attended by representatives from the Ministry of Natural Resources and Environmental Protection, the Federal Service for Supervision of Natural Resource Usage, the Federal Service for Supervision of Consumer Rights Protection and Human Welfare, the Russian Geographical Society, the Russian Arctic National Park, the Higher School of Economics, executive authorities, the Company and its subsidiaries. The first day of the conference was devoted to environmental challenges of Arctic development. The second day included a dialogue between the representatives of public authorities and Company employees on topical issues related to changes in the environmental laws and respective improvement in Company’s operations.