Waste

Our main approach to industrial waste management lies in applying the most advanced technologies, preventing excessive build-ups of waste at LUKOIL Group entities’ facilities, and placing waste at specialized facilities that meet modern requirements.

Most production waste in Russia is made up of drilling cuttings and waste drilling fluids, which are generated during drilling and well operation. The volume of waste generated depends primarily on the scope of drilling and repair works carried out at wells.

In 2019, the Company ensured compliance with the waste management KPI for Russian entities as the volume of waste disposed matched the volume of waste generatedThe calculation of the KPI does not take into account the volume of rock generated during shaft works at LUKOIL-Komi sites and placed at specialized waste dumps.. The amount of pre-privatization IN RUSSIAN ENTITIES waste fell
by 17%
Waste management by LUKOIL Group, thousand tonnes
2018 2019
Waste at the beginning of the reporting year across LUKOIL Group
Within the boundaries for 2018 956 905
Within the boundaries for 2019, including: -- 910
  • ISAB
NA 5
  • Foreign oil product supply entities
NA 0
Waste generation volume, total
Within the boundaries for 2018 1,556 1,747
Within the boundaries for 2019, including: --- 1,783
  • ISAB
NA 34
  • Foreign oil product supply entities
NA 2
Received from third parties
Total NA 5
Amount of waste used, neutralized, and transferred to specialized entities, as well as landfill waste
LUKOIL Group, including: NA 1,751
  • ISAB
NA 35
  • Foreign oil product supply entities
NA 2
Waste at the end of the reporting year
Within the boundaries for 2018 905 943
Within the boundaries for 2019, including: -- 947
  • ISAB
NA 4
  • Foreign oil product supply entities
NA 0

Note. Data on LUKOIL Group are published in the Report starting from calendar year 2018 (reporting year).

Waste generation and waste management in Russian LUKOIL Group entities, thousand tonnes
2017 2018 2019
Volume of Waste generated (excluding waste received from third parties) 1,434 1,529 1,671
Volume of waste used, neutralized and transferred to specialized organizations, as well as landfill waste 1,396 1,582 1,642

Note. Data is provided without rock waste.

Based on the respective environmental hazard classification, most generated waste is of Class 4 (low-hazard) or Class 5 (non-hazardous), and is mostly disposedHere and later, the term “disposal” is used to mean “use, neutralization, landfilling, or handing over to a specialized organization for these purposes.”.

The share of hazardous waste (Hazard Classes 1 and 2) that contains substances that are dangerous to human health and which can cause irreparable changes to environmental systems amounts to 0.01% of the total volume of generated waste; such waste is subject to mandatory disposal.

Hazard Class 3 (moderate) waste includes a portion of oil-containing waste (with an oil product content in excess of 15%) that is also subject to disposal. In 2019, the share of oil-containing waste (oil sludge generated as a result of cleaning of equipment and oil spill sites, Hazard Classes 3 and 4) increased from 13% to 18% compared to 2018 in the overall waste generation structure. This was due to the fact that oil-contaminated soils, which are largely washed at specialized facilities in LUKOIL-Komi and previously were not considered waste, are recorded as waste from 2019 following changes to the regional accounting methodology.

The slight increase in the volume of waste as of the end of 2019 is due to the drilling operations plan: some wells under construction accumulate drilling waste for further disposal.

Waste that is stored long term (596 thousand tonnes) still mainly includes waste activated sludge, which was generated during the Saratovorgsintez plant’s wastewater treatment and placed at the deposit site. The site is included in the State Register of Waste Disposal Facilities.

1–5 hazard class waste at Russian entities of LUKOIL Group in 2019, thousand tonnes
Waste at the beginning of the year, total Waste generated during the year, total Waste at the end of the year, total
Total waste across LUKOIL Group 886 1 671 920
including:
  • oil-containing
22 294 20
  • drilling waste
108 1,131 148
Hazard Class 1 0.0008 0.0330 0.0020
Hazard Class 2 0.0014 0.0937 0.0043
Share of waste of Hazard Classes 1 and 2 0.0002% 0.0076% 0.0007%
Hazard Class 3 (oil-containing) 23 253 21
Share of waste of Hazard Classes 1, 2, and 3 3% 15% 2%
Hazard Class 4 831 1,287 868
Hazard Class 5 32 131 31

Notes. Most substances categorized as hazardous waste in the international accounting system are contained in waste of Hazard Classes 1 and 2. In Russia, waste of Hazard Classes 1–3 is considered hazardous, the Hazard Class 4 waste low-hazard, and Hazard Class 5 waste non-hazardous. The hazard class is determined based on criteria approved by the Russian Ministry of Natural Resources and Environment.

The Company applies pitless well-drilling concept in vulnerable natural areas in Russia, according to which generated drilling waste is not stored/landfilled at drill sites, but sent for use or neutralization.

We supervise the quality of waste disposal works carried out by contractors, monitoring their waste-handling methods, the state of the in-process control system, and the availability of the necessary resources to fulfill contractual obligations.

In order to minimize environmental impact from hazardous waste generation, new waste disposal facilities are being built by Lukoil and existing ones are being modernized. The new disposal facilities will facilitate improvements to waste management. In 2019, such facilities were built at the Pyakyakhinskoye field in Western Siberia and at the Shchelyayurskoye field in the Komi Republic; a thermal waste treatment plant was purchased for the Stavrolen plant.

Pre-privatization damage management

By the time of the privatization of a number of assets in the field of oil production and refining in Russia and Eastern Europe, significant volumes of oil-containing waste (oil sludge in special sludge collectors and evaporation ponds) had been accumulated at production facilities. They are called “pre-privatization environmental damages” in the Company. LUKOIL, at its own expense, disposes of them at most enterprises. As of 2019, such waste had been fully processed at the refinery in Romania, as well as at LUKOIL-Western Siberia and RITEK in Russia.

Oil refinery in Romania

In 2006-2013, around 450 thousand cubic meters of pre-privatization oil waste was disposed of. Contaminated soil was cleaned and removed from the walls and bottom of sludge collectors. Reclamation was carried out at the site of the former facility, grasses and shrubs were sown.

Oil refinery in Bulgaria

The refinery undertook to remedy of pre-privatization oil waste in accordance with an agreement signed in 2000. Such works are financed by the state in Bulgaria. In 2019 18 thousand tonnes of oil waste were disposed of. This work continues.

Russian refineries

In 2019, work at the Volgograd refinery continued to neutralize pre-privatization oil waste, and 50 thousand tonnes were disposed of. It remains to process around 39 thousand tonnes of waste.

Pre-privatization waste, thousand tonnes
Waste at the beginning of reporting year Waste eliminated in reporting year Waste at the end of reporting year
2018
LUKOIL Group entities, total, including: 773 107 666
  • Russian
319 50 269
  • foreign
454 57 397
2019
LUKOIL Group entities, total, including: 666 69 602*
  • Russian
269 51 223*
  • foreign
397 18 379

Note. (1)* In implementing the scheduled measures to eliminate pre-privatization damage at LUKOIL-Volgogradneftepererabotka for 2020, the scope of pre-privatization damage was revised as part of a geodesic survey at the end of 2019. Thus, the total pre-privatization damage was changed from 218 thousand tonnes to 223 thousand tonnes. (2) The amount of waste disposal during the pre-privatization period in foreign entities (in Bulgaria) is determined by the financing of the state, which is the owner of the waste in accordance with local legislation.