Clean Water Subprogram

DMA, G4-EN22 GC8 CPI 2.7, 2.7.2, CPI 2.7.1,
G4-EN8 GC 7,8 CPI 2.3, CPI 2.3.1, G4-EN10 GC8 CPI 2.4

Management Approach DMA

The key wastewater clearing measures include:

  • in-process control over the quality of wastewater discharges and the condition of the impacted bodies of water;
  • commissioning of new and/or revamping of existing water treatment facilities;
  • identification of defects and a major overhaul of pipelines and their inhibitory protection;
  • construction of initial water discharge and utilization systems;
  • revision of pipeline passages through bodies of water;
  • treatment of contaminated groundwater from drainage systems.

Offshore facilities follow the “zero discharge” principle that rules out any contamination and involved in-process environmental monitoring.

The “zero discharge” principle

is the central pillar of the environmental security system that LUKOIL implements while carrying out its offshore projects. “Zero Discharge” means a complete ban on burying or overboard discharges of any production or domestic waste. Following its collection and segregation, all waste is taken ashore for recycling or disposal.

The “zero discharge” principle is followed strictly when carrying out both exploratory and production drilling, and during commercial hydrocarbon production. The approaches employed by the Company to enforce the “zero discharge” principle for its offshore projects are based on the recommendations made by HELCOM (Helsinki Commission) for countries operating in the Baltic offshore areas.

Clean Water Subprogram: Water discharge

The Environmental Safety Program has put a stop to discharges of contaminated (or insufficiently treated) wastewater into bodies of water across all business sectors, other than Oil and Gas Production in Russia.

Compared to 2014 levels, discharges of contaminated (insufficiently treated or untreated) wastewater by LUKOIL Group entities has decreased, mainly due to a complete cancellation of wastewater discharges by OOO LUKOIL-Volgogradenergo into bodies of water. Water treatment facilities were constructed at Pyakyakhinskoye, a field operated by OOO LUKOIL-West Siberia in the Yamal-Nenets Autonomous Area.

The accounting policy has been adjusted with respect to the discharge of wastewater: land disposal of wastewater has been excluded from the record in accordance with changes in Russian legislation. Nevertheless, the Company continues to tackle the issue of land disposal of contaminated wastewater, in particular, discharges of salt-wastewater into a sludge pit at Astrakhan SGP-110, operated by OOO LUKOIL-Astrakhanenergo. A project is underway to prevent wastewater filtration into subsurface horizons by waterproofing the bottom of the sludge pit with a polymer film.

Variations of wastewater discharges in Russia, million cubic meters G4-EN22 GC8 CPI 2.7, 2.7.2
Indicator 2014 2015 2016
Water discharges into surface water bodies including: 265.4 268.4 244.0
clean according to standards 243.0 245.2 223.7
treated according to standards 20.7 21.8 19.5
under-treated 0.6 0.7 0.7
contaminated (untreated) 1.1 0.7 0
Specific discharges of contaminated wastewaters in Russia CPI 2.7.1
Business sector 2014 2015 2016
Oil and Gas Production in Russia, cubic meters/ton of reference fuel of produced hydrocarbons 0.005 0.005 0.005
Oil Refining in Russia, cubic meters/tons of refined oil 0 0 0
Petrochemicals, cubic meters/tons of processed raw stock 0 0 0
Product Marketing and Distribution in Russia, cubic meters/tons of sold petroleum products 0 0 0.001
Midstream, cubic meters/tons of transported oil and petroleum products 0 0.003 0.002
Power Engineering, cubic meters/TRF (tons of reference fuel) of consumed fuel 0.17 0.102 0.003

Clean Water Subprogram: water withdrawal

Management approaches DMA

The key fresh water consumption reduction measures include:

  • monitoring fresh water consumption;
  • commissioning new and/or revamping the existing reverse water supply and recycling facilities.

The Company’s entities also operate in arid regions, where fresh water is scarce (Stavropol and Krasnodar Territories, Saratov, and Volgograd Regions). The issue is primarily addressed by putting water supply and recycling systems into service and ensuring the most beneficial use of the water withdrawn, including stratal water. As part of its social partnership with different Russian regions, the Company has ongoing projects to supply their residents with drinking water.

Water consumption

Most of the water consumption of the LUKOIL Group (i.e. over 90%) is used to satisfy production needs, of which, about 70% is used to meet demand from power and heat generation facilities, and about 20% goes to business units to maintain formation pressure within mineral extraction blocks.

LUKOIL Group entities also have their water intake facilities replenished by enterprises located within proximity of the Company’s sites, however, their share in the total water withdrawal has been declining.

Power engineering companies use water to produce steam and cool down CHP equipment. The specific water withdrawal in the business sector has been reduced due to the decommissioning of obsolete equipment.

In November 2016, at its Yarega field, OOO LUKOIL-Komi commissioned VPU-700, a water treatment unit (capacity: 700 cubic meters per hour) to treat stratal water and produce steam that is subsequently injected in pay beds during the production of high-viscosity oil. With this facility in operation, the company will cut back on its water intake from the reservoir and use stratal water more efficiently.

A reduction in specific water withdrawal in the Petrochemicals sector was due to expansion of production.

Water consumption

A water treatment plant was commissioned in november 2016 at the Yarega field. With this facility in operation, the company will cut back on its water intake from the reservoir

Water withdrawal for own needs in Russia, million cubic meters G4-EN8 GC 7,8 CPI 2.3, G4-EN22 GC8 CPI 2.7
Indicator 2014 2015 2016
Water consumption, including: 525.0 526.8 522.2
surface bodies of water 314.0 305.9 297.4
subsurface bodies of water 81.0 78.7 77.1
other sources (central water supply networks, etc.) 130.0 142.2 147.6
Water consumption for own needs of the LUKOIL Group entities, including: 402.7 413.1 415.9
business needs (excluding consumption to maintain formation pressure) 303.9 304.8 307.4
formation pressure maintenance 76.5 79.2 76.4
Specific water withdrawal for own needs of LUKOIL Group entities in Russia CPI 2.3.1
Business sector 2014 2015 2016
Oil and Gas Production in Russia, cubic meters/ton of reference fuel of produced hydrocarbons 1.0 1.0 1.0
Oil Refining in Russia, cubic meters/tons of refined oil 0.4 0.5 0.6
Petrochemicals, kg/tons of processed raw stock 21.2 Affected by downtime caused by the OOO Stavrolen accident. 12.8 6.2
Product Marketing and Distribution in Russia, cubic meters/tons of sold petroleum products 0.04 0.047 0.055
Midstream, cubic meters/tons of transported oil and petroleum products 0.04 0.045 0.039
Power engineering, cubic meters/TRF (tons of reference fuel) of consumed fuel 47.8 40.7 40.1

Fresh water consumption across the business sectors remains low. New production facilities are fitted out with reverse water supply and recycling systems. Compared to 2014, in 2016, water circulation in the said systems went up 30% (or by 768 million cubic meters), which results in substantial savings of natural water resources.

Reverse water supply and reused water in Russia, G4-EN10 GC8 CPI 2.4
Reverse water supply,
million cubic meters
Reused water in Russia,
million cubic meters
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