Land rehabilitation and Pre-privatization damage management

Land rehabilitation

Land rehabilitation works are performed at sites that have become contaminated with oil due to failures in the oil-production infrastructure, or due to other incidents. The rehabilitation of contaminated land is carried out in all territories where the Company operates. In view of the climatic conditions of operations in Russia (chiefly the northern latitudes), the necessary rehabilitation cycle of a contaminated site takes at least two years. In 2018, 50.3 hectares of land were transferred to the state commission. As a result of completing all rehabilitation stages, including the microbiological stage, the content of oil products on this land was reduced to safe levels.

Pre-privatization damage management

As of December 31, 2018, in the previous six years the volume of “old” waste decreased by 575,000 tons (compared to data at the beginning of 2013, when the last stocktaking was performed).

The balance sheets of a number of oil production and processing entities accumulated large volumes of mainly oil-containing waste during the period before privatization and/or the acquisition of respective enterprises by LUKOIL Group (pre-privatization [“old”] damage). At its own initiative the Company disposes of such waste at its own expense (except for LUKOIL Neftochim Burgas AD, where respective activities are financed by the state). The volume of pre-privatization waste is declining each year. In 2018, the volume of “old” waste fell in comparison to 2017:

  • at Russian entities, by 16% (to 268,9 thousand tons)
  • at LUKOIL Neftochim Burgas AD, by 13% (by 396,5 thousand tons)

The pre-privatization waste of PETROTEL-LUKOIL S.A. (Romania), LLC LUKOIL-West Siberia, and LLC RITEK was processed in full.