The Komi Republic

The Komi Republic

LUKOIL is taking active steps to improve the reliability of its pipeline system and the overall environmental situation in the Komi Republic. A set of measures is implemented annually, including protecting pipes against corrosion; the repair, renovation, and technical re-equipment of pipelines; and corrosion monitoring.

In 2019 more than RUB 7 billion was allocated to environmental protection measures, and over RUB 4 billion alone was spent on repairing and replacing pipelines in the Komi Republic.

To mitigate technological and environmental risks, pipes with shorter life expectancy are replaced by corrosion-resistant pipes (made of steel with internal and external anticorrosion coating). In 2019 corrosion-resistant pipelines made up 24.4% of the total length of LUKOIL-Komi pipelines. At the same time, the speed and volume of pipe replacement depends on the technical condition of pipelines, and an independent expert organization performs diagnostics and determines the remaining service life of pipes. Inadequate sections are subject to prompt repair or renovation; as a result, the number of failures declined in 2019.

Overall, the replacement ratio of infield pipelines was 3.2% in 2019. Pipelines with inhibitor protection comprises 29% of the total length of pipelines. The number of personnel involved in the maintenance processes of chemical injection skids and monitoring corrosion inhibitor for field pipelines rose.

In 2019 the Company also elaborated comprehensive organizational and technical measures to reduce social and environmental risks in the Komi Republic. The implementation of the measures is scheduled for 2020–2022. Plans include additional work to replace hazardous sections of pipelines and to rehabilitate contaminated sites.

On an ongoing basis the Company interacts with suppliers of pipe products with internal protective coatings. In particular, bypass pilot testing of alternative protective coatings for pipes is conducted, with expert appraisals issued on product compliance with PJSC LUKOIL technical requirements.

For example, it was initially planned to use an internal silicate enamel coating for a water pipeline at the Yarega field. Based on recommendations issued by the Network Group’s experts, pilot testing of new types of coatings were performed over two years to determine the most reliable solution. As a result, an alternative option was selected. PermNIPIneft recommended using the Sigmaline 2,500 epoxy phenolic coating, with a guaranteed service life of at least 10 years vis-à-vis quality and material conformity. Replacing the internal protective coating at this facility allowed LUKOIL-Komi to reduce capital expenditure on the construction of a water pipeline by over RUB 266 million, while at the same time boosting the operational reliability of the facility.

Complaint management

LUKOIL Group has a Social Code in place which sets forth obligations related to interacting with local communities and indigenous peoples.

At key stages of projects LUKOIL holds consultations with residents whose interests may be impacted by corporate plans. Various communication channels are used for this purpose, including public hearings on projects, personal meetings between LUKOIL Group management and specialists and residents, and a permanent hotline to interact with the public. The opinions of local residents are taken into account when deciding on project implementation parameters.

For example, the Company informed Ust-Usa village residents about the construction of an exploration well at the West Usinskaya facility in 2019. The public opposed these plans on account of the proximity of the site to settlements. Following consultations, it was decided to move the construction site and in addition to hold regular meetings with an advocacy group of residents to address a wide range of social issues faced by local villages.

Another example concerned discussions about a disposal site for the Shchelyayurskaya group of fields owned by LUKOIL-Ukhtaneftegaz. In 2018, during public hearings, Izhemsky District residents objected to the construction of the site. In 2019 representatives of the district and public organizations (including Pechora Rescue Committee representatives) visited a similar facility, an oil sludge disposal site at the Zapadno-Tebukskoye oil field.

Visitors were shown around the site and informed about how it operates, and all their questions were answered. The Pechora Rescue Committee representatives were able to satisfy themselves that the site is a modern and high-tech facility that will neutralize oil sludge without any negative environmental impacts. The representatives left positive feedback about their trip in social networks.

See the Environmental Protection group

In 2019 the Company continued to operate its hotline, including coverage of environmental safety issues. 249 calls were received, although most were unrelated to environmental safety. All reports relating to the environment were verified, and no violations of environmental safety standards were identified.

LUKOIL-Komi liaises with active public and national organizations, including Komi Voityr, the movement of the Komi-Izhemtsi ethnical group Izvatas, Rus Pechorskaya, and the Pechora Rescue Committee. Cooperation agreements are concluded annually with a number of these organizations and support is provided to their projects. Furthermore, LUKOIL-Komi representatives participate in social movement assemblies and conferences.

As part of the Social and Cultural Projects Competition, Komi residents are given an opportunity to implement environmental initiatives related to the conservation of the environment and natural objects, and environmental education and culture. For example, 2019 saw the successful implementation of the project “Clean River – Clean City” to clean the banks and bed of the Chibyu River, using a grant from LUKOIL-Komi.