ENVIRONMENT

Environmental protection is an underlying principle in Lukbeloil’s operations. Our environmental programs and projects are generated pursuant to the requirements of the Russian environmental legislation and international environmental standards.

Prevention and containment of oil spills is an important area of SPD’s environmental activities. The Company has established an emergency response team with ZAO Zashchita Yugry, a contractor organization, and equipped it with the equipment required; additional equipment and machinery is purchased on an ongoing basis. In order to train personnel in oil spill containment and recovery methods, we conduct exercises on a regular basis to practice the actions of all services in emergencies.

Lukbeloil also pays special attention to environmental contamination prevention issues. We have arranged for separate collection of solid household and production waste. In 2007, the company has built a specialized polygon; in 2012, it obtained a new license for waste decontamination and disposal operations. This license allows Lukbeloil to receive waste from third party entities and dispose of it at the polygon. Within the scope of the waste management program, we execute a mud pit remediation project. Furthermore, the company has voluntarily assumed obligations to abandon legacy exploration wells located within Lukbeloil license areas.

Air, soil, surface water, and bottom sediment within the Lukbeloil fields and along the oil export pipeline route are monitored on a regular basis. The observation data is compared with background values of natural indicators. The prime objective of this environmental monitoring is to prevent deterioration of the natural environment as a result of operating activities.

Clean rivers and soils are the habitat of unique animals and plants of the Lukbeloil land. 275 types of plants and nearly 70 types of moss and lichen grow within the territory of Lukbeloil fields. As per results of research done by the Surgut University, it is also the habitat for 40 types of small mammals, over 20 types of birds and 13 types of fish. In order to preserve the wealth of flora and fauna, Lukbeloil has assumed responsibilities on steady improvement of environmental friendliness of its operations and gradual decrease of the levels of environmental impact. These obligations must be adhered to by all employees of the Company and its contractors with which we actively interact on environmental issues.