Environmental Performance

Improving occupational safety levels and reducing the risk of negative effects on the environment are strategic goals for Gazprom Neft. The Company is committed to becoming one of the leading global oil companies in terms of industrial, environmental and occupational safety and is continuously improving its activities in these areas. Gazprom Neft is guided in its work by the requirements of Russian legislation and international standards in industrial, environmental and occupational safety as well as social responsibility as a corporate citizen.

The Company has a corporate policy in matters of industrial, environmental and occupational safety as well as social responsibility. In 2014, the Company updated a number of corporate standards in this area in accordance with changed requirements of legislation and structural changes at Gazprom Neft.

The management system in matters of industrial, environmental and occupational safety as well as social responsibility in place at the Company complies with the international standards OHSAS 18001:2007 and ISO 14001:2004 and covers the entire perimeter of Gazprom Neft. The Company employs a unified integral index that offers a score for the activities of enterprises in matters of industrial, environmental and occupational safety as well as social responsibility, including accident and injury rates, the implementation of injury prevention programmes, fire, transport and environmental safety programmes as well as social responsibility measures at subsidiaries and affiliates. The score results are taken into account when summarising the performance results of the Company’s subsidiaries for the year.

The launch of major projects in the north of the Yamalo-Nenets Autonomous District, the development of the Arctic shelf, entering new markets in Russia and abroad as well as modernising and developing the Company’s own infrastructure all create new obligations for risk management in matters of industrial, environmental and occupational safety. In 2014, Gazprom Neft began reorganising its management system in matters of industrial, environmental and occupational safety. The project resulted in improvements to the industrial safety level at the Company, increased its assets and production volume and brought the system into compliance with the most advanced approaches to management in this area.

Corporate standards in matters of industrial, environmental and occupational safety as well as social responsibility are taken into account when selecting contractors. Compliance of a contractor’s activities with the requirements of Gazprom Neft in this area is one of the most important criteria for pre-qualification as a potential partner. The Company devotes special attention to a contractor’s policy in industrial and environmental safety, the existence of management systems for industrial, environmental and occupational safety and social responsibility that focus on managing risks in the provision of services as well as training programmes that take into account the specifics of production.

The Company declared 2014 to be the Year of Environmental Culture and Industrial Safety. Throughout the year, Gazprom Neft subsidiaries implemented measures aimed at developing the Company’s industrial and environmental safety management system and improving the efficiency of processes used to identify hazards and manage professional risks. An Environmental Education Programme was implemented in order to develop the skills, responsibilities and motivation of personnel. One significant event was the corporate competition “Best Initiative in Matters of Production Safety” based on the production activity results of the Company’s subsidiaries in 2014. Judges of the competition received 96 applications in total with most of suggestions being recommended to subsidiaries for implementation.