Management System DMA

DMA, CPI 1.1

The Corporate Integrated Health, Safety and Environment Management System (hereinafter referred to as the “Management System”) is in service and continuously subject to improvements as required by ISO 14001, OHSAS 18001, Russian law or statutory acts enacted in the countries of LUKOIL Group’s presence. Starting from 2001, the LUKOIL Group successfully passed external audits establishing its compliance with ISO 14001 and OHSAS 18001. Following a re-certification audit conducted in 2016, PJSC LUKOIL and 46 Group entities, including those outside Russia, were certified as compliant with these standards.

The Company has a system

of corporate standards, series 1.6, in place, titled the Health, Safety and Environment Management System

In 2016, the Company enacted and began to enforce requirements in regard to leadership safety visits by the management of the Company and LUKOIL Group entities, making them part of production facility visits. In addition to tackling production matters, these include inspections of facilities and monitoring of the LUKOIL Group and contractor (subcontractor) personnel to establish whether the HSE requirements are being followed and to discuss hazardous actions and safe operating practices.

Following-up on HSE matters is the responsibility of the First Executive Vice President, who heads the Health, Safety, and Environment Committee of PJSC LUKOIL. Day-to-day management and coordination of these activities is the responsibility of the Department for Industrial Safety, Environment, Research and Technology of PJSC LUKOIL.

The priorities of PJSC LUKOIL include:
  • ensuring safe working conditions of employees
  • protecting the health of employees of the LUKOIL Group and the population living in the Company’s areas of operation
  • maintaining a favorable environment based on the use of the best available technologies

The HSE Policy of the LUKOIL Group in the 21st Century defines the strategic goals, objectives, and obligations underpinning all functional long-term and annual goals, objectives, programs, plans, and activities. If there is no ground for adjustment, document revision is carried out every five years. CPI 1.1

In order to implement the Policy, the Company has developed targeted functional programs, including:

  • An environmental safety program;
  • A program of health and safety, better working environment, emergency prevention and response;
  • A health, safety, and environment program;
  • A biodiversity conservation program, and other measures.

The Management Committee annually reviews and approves an HSE report, which is an established form of performance review in the respective area by the management of the Company. This review is followed by decisions regarding future development paths, remedial and preventive measures. The data contained in the report are also taken into account while drafting the Development Strategy and investment programs of the LUKOIL Group.

Policy Implementation Mechanics

Long-, mid, and short-term environmental and occupational safety programs, better working conditions and safer working environments, emergency prevention and response.

Audit

The Company conducts annual in-house audits of the management system across LUKOIL Group entities.

It regularly engages third party auditors to conduct external supervisory audits.

Assessment of the management system efficiency

Assessments are based on:

  • audit findings;
  • monitoring data, including production control and corporate supervision data;
  • results of HSE review contests

Both the Company’s corporate center and subsidiaries must abide by the established key HSE performance indicators, some of which serve as incentives and are taken into account when determining the remuneration of the executive personnel.

The LUKOIL Group’s management system is standardized as regards to contractor HSE requirements and covers all stages from pre-bid evaluation of bids to work performance of contractors. In 2016, the LUKOIL Group required all of its entities to do routine audits of their contractors (subcontractors) and hold joint Safety Days at least twice a year. The contractors (subcontractors) also have to adopt and enforce the Key Safety Rules at the facilities of LUKOIL Group Entities.

On top