Environmental Safety Program

Following the implementation of environmental safety program activities, environmental performance improved in 2018, including in terms of reducing pollutant emissions into the atmosphere and reducing water consumption from above-ground sources in the electrical energy sector.

The updated Environmental Safety Program for 2019–2021 comprises over 900 measures, with a total cost of around RUB 106.5 billion (RUB 89.1 billion in investments; RUB 17.4 billion in operating expenses). 45 Russian and foreign LUKOIL Group entities participate in the program. Principal funding areas comprise:

  • Emergencies and response preparedness (around 40% of the program's budget)
  • Achieving a reduction in emissions, discharges of pollutants and water consumption, subject to the requirements for transitioning to the best available technologies in Russia
  • Continued work on the rehabilitation of accumulated damage (including in the Russian Arctic Zone)
The total cost of the Environmental Safety Program of the LUKOIL Group for 2019–2021 106.5 RUB billion

Environmental protection targets have been set in both qualitative and quantitative terms.

Environmental Safety Program goals and indicators for 2018 and 2019–2021

Costs of environmental protection activities performed by LUKOIL Group entities, RUB million
2016 2017 2018
Total costs, including: 53,286 42,412 35,529
capital costs 30,854 21,927 28,498
a) Russian entities, total 53,286 42,412 34,339
including capital costs 30,854 21,927 27,552
b) foreign entities, total: no data no data 1,190
including capital costs no data no data 946

Notes. 1) Reducing the total funding volume for Environmental Safety Program measures is connected with the completion of the main stage of the Program for the Rational Utilization of Associated Petroleum Gas in LUKOIL Group Entities.
2) The costs of the Environmental Safety Program comprise: expenses related to the Program for the Rational Utilization of Associated Petroleum Gas by LUKOIL Group Entities, waste removal and disposal, the treatment of emissions and discharges, the performance of in-process environmental controls and the monitoring of environmental components, the preservation of biodiversity, eradicating damage, and preparedness for the liquidation of emergencies (sum of operating and capital costs).
3) When calculating costs in the foreign entities of LUKOIL Group, the 2018 currency exchange rate of USD 1 = RUB 63 was used.