Health, Safety and Environment Requirements

When interacting with suppliers and contractors, a significant emphasis is placed on health, safety and environment issues. PJSC LUKOIL’s procedures to select suppliers and contractors and to monitor the fulfilment of contractual obligations promote a culture of safe and responsible business.

If a tender requires the inspection of an applicant’s HSE system, experts of PJSC LUKOIL and its subsidiaries conduct an assessment in accordance with the corporate document “Regulations on Holding Tenders for the Selection of Suppliers and Contractors by LUKOIL Group Entities”.

The assessment is based on a pro forma qualification questionnaire. The assessment seeks to determine the level of compliance of the applicant’s HSE system with the requirements of the Company based on a number of criteria and indicators, including the occurrence of accidents, the frequency rate of fatal accidents, the variation in the number of accidents and incidents in the last three years. If the outcome of the assessment is unsatisfactory, the applicant will not be permitted to participate further in the tender.

Furthermore, in accordance with supply and service contracts, all suppliers and contractors must commit to abide by legislation and corporate requirements, including the LUKOIL HSE Policy in the 21st Century, and the Key Safety Rules at LUKOIL Group Entities’ Facilities.

Under contract, suppliers and contractors are liable for non-compliance or deficient compliance with the requirements of industrial, fire, radiation safety, emergency prevention and response, civil defense, and labor and environmental protection.

If, during the provision of services, a contractor fails to comply with HSE regulations, a report is drafted, outlining the identified issues. This is then communicated to the management of these companies and joint meetings are held to rectify and prevent violations.

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