Management system

The Company has built an effective system for managing the reliability of field and main pipelines The information contained in this section refers to the Russian entities of LUKOIL Group., based on the requirements of applicable laws and federal rules and regulations, as well as corporate documents.

The Company's policy on improving the reliability of pipeline transport is established by Federal Law FZ-116 "On the Industrial Safety of Hazardous Production Facilities," federal regulations, and the industrial safety rules "Rules for the Safe Operation of In-Field Pipelines" (approved by Rostekhnadzor Order No. 515 dated November 30, 2017), and corporate bylaws (STO LUKOIL 1.19.1-2012; 1.19.2-2013 and 1.19.3-2013).

The system covers all management levels, from senior management to specialized services in LUKOIL Group entities. The individuals responsible for the safe operation of pipeline transport facilities, performing timely technical diagnostics, and with industrial safety expertise are appointed by respective orders for each entity. Responsible individuals in this area also include the experts and head of the PJSC LUKOIL Improvement of the Oilfield Pipe and Tubing Reliability Network Group (hereinafter, the Network Group).

The management system, as well as methods for improving the reliability of pipelines, are regularly improved. A key source of expertise is the activity of the Network Group, which forms a structural element within the Corporate Knowledge Management System.

Each Russian oil and gas producing organization implements an investment program related to the renovation and technical re-equipment of pipeline transport facilities. In order to influence the main factors that affect the safe operation of pipelines, objectives and planned quantitative indicators are determined for each reporting year, as well as for the medium term.