Interactions with contractors

We realize our responsibility towards stakeholders and society as a whole and encourage our business partners to adhere to the environmental and social performance principles of our Company. For example, our standard contracts include provisions obligating contractors to follow the provisions set forth in the LUKOIL Group Policy on industrial safety, occupational health and environmental safety in the 21st Century.

The Company regularly reviews contractors in terms of compliance with occupational health and industrial safety requirements throughout the term of the contract. Thus, in 2019, as part of corporate supervision and production control in Russian entities of LUKOIL Group, over 7 thousand audits were conducted. Employees of counterparties were held responsible for the violations committed, and penalties were applied. Contractors took measures to eliminate and prevent violations in a timely manner.

We bolster interaction and cooperation with our contractors at the Company’s facilities concerning occupational safety issues. For example, the employees of the Company’s suppliers and contractors are trained in occupational and industrial safety issues and participate in Safety Days. This helps us advance our goal of reducing the occupational injury rate:

  • by improvement of working conditions and occupational safety at LUKOIL Group entities, and, as a result, reducing of the level of injury rate and occupational illnesses;
  • by reducing the risks of accidents, incidents, fires and emergencies at the facilities of LUKOIL Group entities.

The indicator “fatal accidents during the performance of contracting and subcontracting activities at the Group’s facilities” is included in the comprehensive KPI “Ensuring the Required HSE Levels at LUKOIL Group Entities,” which is taken into account in the motivation system.

Despite the measures we are taking, we have not yet succeeded in reducing the number of accidents year-on-year. The findings of our analysis of the respective indicators for the last 5-year period are indicative of an upward general trend. This result has to a great extent been achieved through our efforts to regularly inform contractors of safe work performance rules at LUKOIL facilities, the Key Rules of Safety and other local documents. Representatives of the key contractor organizations are invited to regular events aimed at improving the culture of safety, including Safety Days. We are committed to proceeding with this work in future.

Indicators related to occupational injuries at contractor organizations in Russia and abroad
2017 2018 2019
Total number of occupational accidents, including: 20 9 13
  • fatal
7 1 6
  • high-consequence work-related injuries
4 3 1
Number of employees injured in workplace accidents (total number of injuries), including: 25 9 16
  • number of fatalities (FA)
10 1 7
  • number of lost time injuries (LTI)
15 8 9
Interactions with contractors