Water use

The total indicators of water withdrawal and water consumption in Russia are significantly influenced by electrical energy sector entities (whose consumption amounts to around 62%). These are major consumers of water used in steam generation and to cool thermal power plant equipment. The availability of these assets is a distinguishing feature of LUKOIL's business model compared to other oil and gas companies.

Oil and gas extracting entities use water primarily to maintain formation pressure. The share of the business segment in water utilization for LUKOIL Group is around 28%. Entities within the processing and sales business segments together consume around 10% of total water consumption in LUKOIL Group.

Specific water consumption remains relatively stable in all business sectors. At electrical energy sector entities this indicator has been falling, due to measures taken to decommission obsolete equipment. In particular, in 2018 the consumption of make-up waterMake-up water is water that has been chemically and thermally processed and is intended to compensate water losses in heat-consuming installations and heat networks. for the needs of the LLC LUKOIL-Astrakhanenergo heating network was reduced, and the withdrawal of water from the Kuban by LLC LUKOIL-Kubanenergo declined, thanks to the implementation of an investment project to upgrade sluice gates.

Specific water consumption for in-house needs by Russian LUKOIL Group entities, broken down by main types of activity
2016 2017 2018
Oil and gas extraction, cubic meters/ton of oil equivalent in hydrocarbon resources 1.0 1.0 1.0
Oil processing, cubic meters/ton of processed oil 0.6 0.5 0.5
Petrochemicals, kg/ton of processed raw materials 6.2 7.3 6.4
Oil products supply, cubic meters/ton of oil products sold 0.06 0.07 0.1
Transportation, cubic meters/ton of oil products transported 0.04 0.02 0.02
Electrical energy sector, cubic meters/ton of oil equivalent in consumed fuel 40.1 34.4 34.0

Notes. 1) Specific indicators are calculated based on the volumes of water consumed by LUKOIL Group entities for their own needs. 2) Fluctuations in the indicators of petrochemical and oil refining entities are due chiefly to a change in the volume of products produced.