Health, Safety, and Environment
Safety is a key priority across all Rosneft business segments. The Company pays close attention to matters of health, safety, and environment protection at the top management level and is committed to providing safe operation and workspaces, protects the health and safety of its employees and the local residents in regions of its operation as well as to mitigating its environmental impact.
Rosneft is the leader of the Russian oil and gas industry and a key global fuel and energy sector player having a major impact on the development of regions where it operates, including the social protection of its employees.
The Company is committed to protecting the health and safety of its employees, partners, and the local residents in regions of its operation, and makes every effort to prevent workplace accidents, emergencies, and fires where possible or mitigate their negative effects.
Rosneft’s high standards of industrial and fire safety, occupational safety and health, and environment protection are mandatory for all its employees and form part of its partner relations including contractors.
The Company’s key HSE principles:
- Absolute priority of the lives, health, and safety of people over the Company’s performance
- Prioritizing preventative measures over measures to contain and respond to emergencies
- Sustainable use of natural resources in the Company’s operations, and efforts to protect, restore, and rehabilitate affected areas
- Reducing the negative environmental impact from the Company’s operations
- Efforts to conserve ecosystems and biodiversity, including during the implementation of offshore projects in environmentally sensitive locations
As part of the Rosneft 2022 Strategy, the Company updated its strategic targets for injury rates, environmental protection, integrity, road traffic accidents, and transparency of reporting by targeting the following HSE development priorities: occupational safety, safety culture, and environmental leadership, HSE risk assessment and production asset integrity, HSE management system, capabilities, reporting and performance assessment, monitoring compliance with the established HSE requirements.
Key HSE initiatives in 2017:
- Rosneft’s Health, Safety, and Environment Committee was established for decision-making on strategic HSE matters such as HSE risk management, and the development and implementation of HSE improvement plans, with the Company’s top business and functional managers appointed as members of the Committee
- To share experience and incorporate HSE best practices:
- Rosneft’s employees visited BP’s production facilities in Rotterdam and Baku
- a number of joint workshops, meetings, and evaluation initiatives were held in Moscow and the Company’s regions of operation, including a Global Leadership in Industrial Safety joint workshop attended by top managers from Rosneft and BP
- a Leadership in Industrial Safety Day was held, attended by representatives of Group Subsidiaries and BP
- A series of road safety initiatives were implemented, including to establish compliance with, and the implementation status of, the Company-wide Golden Rules of Safety
- The internal corporate courses, Leadership in Health and Safety, Incident Investigation, and HSE Risk Assessment and Management, were organized
- HSE performance indicators were updated
- A differential approach was developed for penalizing employees from contractors and subcontractors for violations of HSE regulations, or breaches of labor or operational discipline
- Requirements were approved for competitive procurement of accident- or injury-prone work and services to be performed in Russia at Rosneft or Group Subsidiaries sites or for their benefit, capping injury rates for bidders
- An inventory of worn-out tanks with multiple service life extensions was taken, followed by the development of strategies to improve tank farms at some Group Subsidiaries, including the replacement, overhaul, renovation, and upgrades of tanks that are past their service life
- Fire safety has been ensured in the living quarters at production facilities of the Company and its contractors (including workers’ wagon and other camps), and these areas are continuously monitored for fire safety, which helped avoid accidents caused by fires and fire outbreaks. The Company provided an early response to all reported fire accidents with no financial losses incurred
- A program was developed to ensure that fire safety requirements are met at Rosneft’s oil refining facilities, following the results of independent fire safety audits conducted throughout the year
- Targets were developed and introduced across the Company’s facilities for the key fire safety areas to improve fire response times, reduce fire damage, and prevent casualties in case of fire
Environmental care is an integral part of Rosneft’s corporate culture and social responsibility.
The Company regularly carries out extensive activities focused on environmental safety and natural resource conservation and restoration.
The Company placed special emphasis on environmental protection in 2017 as it was declared the Year of the Environment by the Russian Presidential Decree.
In 2017, the Company was engaged in eight priority environmental projects covered by the Framework Action Plan for the Year of the Environment, approved by the Russian Government. One of such projects involved the renovation of the integrated biological wastewater treatment facilities at Bashneft and Bashneft-Ufaneftekhim, which enables to bring the standards of wastewater treatment in line with regulatory requirements, and increase water recycling, thus significantly reducing the adverse impact of Bashneft’s industrial wastewater on the Belaya River.
As part of the Year of the Environment, Rosneft implemented multiple initiatives, including themed festivals, contests, cleanup campaigns in national reserves, and voluntary cleanups of watersides, parks and woodlands throughout Russia. Ecology lessons were held across the country as part of the Rosneft Classes program, involving environmental specialists from the Group Subsidiaries.
HSE Sections were opened at six cluster R&D conferences and at the Inter-Regional Research and Development Conference of young specialists.
The culmination point of the Year of the Environment was Rosneft’s 4th Ecologists’ Day where reports on environmental protection priorities, best practices, and innovative environmental solutions were presented, along with Group Subsidiaries’ preliminary performance results and discussions of environmental challenges and solutions, as well as the proposed development of the integrated HSE Management System. The event was attended by environmental protection managers and specialists from over 120 of Group Subsidiaries.
As a leader of the Russian oil and gas industry, Rosneft incorporates environmental efficiency and environmental impact mitigation into its strategic goals and objectives. The Company understands the urgency of climate change issues and seeks to bring its environmental safety standards in line with global industry benchmarks.
The Company is running a number of programs to mitigate its environmental impact:
- A gas investment program
- A refining facility upgrade program covering the construction and renovation of both production facilities and environmental protection infrastructures
- The Energy Saving Program
- A program to improve environmental efficiency by 2025
The Company supports unique social and environmental projects – Evenki Reindeer and Sakhalin Taimen – aimed at preserving the species’ populations.
The Company’s environmental activities in 2017 were highly commended by both supervisory authorities and the environmental community.
During the 5th All-Russian Congress of Environmental Protection Rosneft received the Proactive Environmental Policy during the Year of the Environment award for active involvement in the Year of the Environment events and implementing environmental projects.
Rosneft was awarded a diploma of the annual Environmental Responsibility Rating compiled by the World Wide Fund for Nature (WWF) Russia and CREON Group for Consistent Mitigation of Environmental Impact in 2014–2017.
In its drive to become an environmental safety leader among oil and gas companies, Rosneft is never complacent, maintaining its focus on corporate programs for environmental impact mitigation.
Rosneft’s gross atmospheric emissions increased by 0.36 mmt Preliminary data. in 2017 due to identification of new emission sources and acquisition of new assets including Bashneft.
A 12% year-on-year increase in Rosneft’s water consumption in 2017 was primarily due to the acquisition of Bashneft assets. Water consumption across Bashneft assets in 2017 was 0.25 bcm.
Expenditures on environmental protection increased by 47% y-o-y as part of the Year of the Environment, including Bashneft’s expenditures of RUB 12 bln (54% of the total increase).