Environmental programs

Commitment to Continuous System Improvement and Development

GRI 103-1

Starting from 2014, Zarubezhneft JSC has undergone an independent Ecological Openness evaluation as per the WWF rating criteria. Among the 20 largest oil and gas companies, Zarubezhneft JSC took second place in 2019, reiterating its 2018 position.

In 2019, the financing level of environmental protection activities in the subsidiaries located in the Russian Federation amounted to about 218.04 MM RUB, which is significantly higher than the 2018 level.

In 2019, a supervision audit was successfully conducted to confirm the Certification for compliance with international standards ISO 14001:2015 at the Zarubezhneft JSC Corporate Center, JC RUSVIETPETRO LLC, Zarubezhneft-Dobycha Kharyaga LLC, RMNTK Nefteotdacha JSC, Zarubezhneftestroymontazh LLC, and Modriča Motor Oil Plant A.D. The subsidiaries Zarubezhneft-Dobycha Samara LLC, Ulyanovskneftegaz LLC, Orenburgnefteotdacha JSC, Giprovostokneft JSC were introduced in the HSE Management System certification coverage perimeter.

Zarubezhneft Group subsidiaries control the integrity of intrafield oil pipelines on a monthly basis, which is one of the priorities of the Company’s Environmental Policy.

Subsidiaries regularly trained managers on the Hazardous Waste Management program, developed and updated environmental regulatory documents, conducted environmental audits, identified environmental risks, and obtained all the necessary licenses and permits for emissions and discharges of pollutants and limits for waste disposal.

Calculation and payment of environmental loss compensation were carried out as prescribed by law. Reports were prepared and submitted to state supervisory and statistical bodies in a timely manner.

In 2019, Zarubezhneft JSC took part in the Federal Service for Supervision of Natural Resource Usage pilot project on issuing all-in environmental permits, as part of the federal Ecology National Project’s Implementation of the Best Available Technologies. As a result of this project, Zarubezhneft-Dobycha Kharyaga LLC (Zarubezhneft JSC subsidiary) was positively assessed by the ecological expert commission and was the first Russian company to receive a comprehensive environmental permit (CEP)

As part of automating environmental protection processes in the geological exploration and production segment group of companies, a solution was implemented for accounting environmental indicators in the ECOURS automated control system (ACS).

Zarubezhneft Group Environmental Protection Costs, MM RUB
Indicator 2015 2016 2017 2018 2019
Investments in fixed capital for environmental protection 41.36 97.80 270.22 228.21 60.3
Charges for adversely impacting the environment 19.89 27.283 28.509 20.380 17.30
Environmental damage compensation 0 0 0 0 2.19
Imposed penalties for the environment pollution 0.937 0.09 0.32 0.507 0.940
Current environmental protection costs 196.92 142.63 160.6 163.8 218.04
  • water bodies protection
3.00 4.58 7.68 23 10.31
  • air protection
1.58 1.65 3.5 3.7 7.72
  • protection of land from industrial waste and consumption
155.00 111.66 131.52 118.9 181.7
  • land reclamation
31.19 12.99 12.09 17.4 18.31
  • other environmental protection activities
6.18 11.75 0.0 0 0
Environmental Effects

Environmental Effects

GRI 103-2

One of the most important environmental challenges to minimizing the negative influence of drilling waste is neutralizing and using the waste, followed by elimination of sludge pits.

In 2019, two drilling fluid pits were reclaimed. No oil and oil product spills were registered in Zarubezhneft Group in the reporting period. There are no oil-contaminated soils on Zarubezhneft Group balance sheet.

The air environment, soil, snow, surface water, and bottom sediments were regularly measured at all licensed sites of Zarubezhneft Group enterprises as part of local environmental control and industrial environmental management.

Observation data are compared with the background values of natural indicators. During the reporting period, the maximum permissible concentrations (MPC) in the territory of the Russian Federation were not exceeded.

In 2019, the Company continued its systematic work to control atmospheric emissions.

In the Downstream segment, gasification of technological processes at Brod Oil Refinery A.D. is being continued in order to improve production energy efficiency and reduce the amount of sulfur oxide emissions down to European Union (EU) norms and standards.

Air Emissions

GRI: 305-1, 305-7

Implementation of the Gas Program for rational APG use for the period 2019-2023 was one of the priorities of Zarubezhneft Group of Companies in 2019.

Air emissions, thous tons of oil
Air emissions, thous tons of oil
Gross Atmospheric Emissions by Zarubezhneft Group in the Exploration and Production Segment, thousand tons
Indicator 2016 2017 2018 2019
Gross emission of harmful substances into the atmosphere, including: 27.483 32.528 29.2 24.99
solids 0.865 0.549 0.437 0.280
sulfur dioxide 3.309 7.507 6.909 6.841
carbon monoxide 9.697 8.874 7.914 6.375
nitrogen oxides 1.138 1.391 1.213 1.225
hydrocarbons (without volatile organic compounds) 8.952 10.115 8.804 7.015
volatile organic compounds 3.337 4.069 3.900 3.251
benzopyrene 0.000 0.000 0.000 0.000
other gaseous and liquid substances 0.186 0.000 0.000 0.000

Utilization of Associated Petroleum Gas

Due to activities completed as part of the 2019 Gas Program, APG use for the Company’s own heat and power generation needs has increased. The volume of APG production and use is calculated based on readings of gas metering units. In 2019, the level of APG value added use in the Russian segment of the Group (RUSVIETPETRO, Zarubezhneft-Dobycha Samara within Orenburgnefteotdacha JSC, and Ulyanovskneftegaz LLC) was 92.5%, which is higher than the planned indicators embodied in the 2019 Gas Program (actual in 2018 was 87.5%, planned for 2019 was 92.0%).

Production and Use of Associated Petroleum Gas by Zarubezhneft Group, MM m3
Zarubezhneft Group Enterprise APG production APG use for own needs APG usage %
JC RUSVIETPETRO LLC 120.8 111.54 92.4
Orenburgnefteotdacha JSC 2.37 2.35 99.4
Ulyanovskneftegaz LLC 0.53 0.50 94.5
Total: 123.69 114.39 92.5

Greenhouse Gases Emission Decrease

Zarubezhneft JSC considers the Kyoto Protocol to be an important step towards expanding efficient use of associated gas. The mechanism of Joint Implementation Projects (JIP) on Greenhouse Gas Reduction, provided by the Kyoto Protocol to the United Nations Framework Convention on Climate Change, remains one of the most serious incentives for implementing APG disposal projects and other projects aimed at reducing greenhouse gas emissions.

As per the Guidelines and Instructions for Quantitative Calculation of Volume of Greenhouse Gas Emissions by Enterprises Conducting their Business or Other Activities in the Russian Federation (approved by Order of the Ministry of Natural Resources and Environment of the Russian Federation No. 300 dated June 30, 2015), registered with the Ministry of Justice of the Russian Federation on December 15, 2015, registration No. 40098, Zarubezhneft JSC determined the atmospheric greenhouse gas emission volume for 2019 as a result of the oil production enterprises’ production activities. In 2019, the amount of emissions was about 0.79 t CO2 equivalent. The Gas Program makes it possible to reduce greenhouse emission.

Gas emissions in the Russian Federation, thous tons of oil
Gas emissions in the Russian Federation, thous tons of oil
Due to the Gas Program, the volume of emissions in 2019 amounted to about 0.79 Mt CO2 equivalent, which is 6% lower than the last year.

Due to the Gas Program, the volume of emissions in 2019 amounted to about 0.79 Mt CO2 equivalent, which is 6% lower than the last year.

Water Consumption

The slight increase in water consumption in 2019 compared to 2018 is due to Zarubezhneft-Dobycha Kharyaga LLC and JC RUSVIETPETRO LLC commissioning a new well stock, and an increase in the volume of water used in the water injection system.

Water extraction, thous tons of oil
Water extraction, thous tons of oil

Waste Management

GRI: 306-2, 306-3

In 2019, drilling volumes decreased compared to 2018, which led to a decrease in the drilling waste generated at JC RUSVIETPETRO LLC fields. Specific waste generation decreased from 7.9 tons per 1,000 tons of oil in 2018 to 4.5 tons in 2019. The waste generated is composed of, by weight, more than 95% hazard class IV, i.e. sludge. As per the current Company internal regulations, all sludge was processed to inert material.

All waste generated in subsidiaries is transferred for further use, neutralization, disposal, and burial at specialized landfills according to agreements concluded with specialized enterprises.

Waste generation, thous tons of oil G4-EN23
Waste generation, thous tons of oil
Biodiversity Management

Biodiversity Management

GRI: 304-3

In accordance with licenses for the use of subsurface resources obtained by Zarubezhneft Group participants, they search for, explore, and produce hydrocarbon raw materials, and develop and construct fields on territory that does not fall within the boundaries of specially protected natural territories but may be adjacent to territories of traditional nature management or specially protected natural territories.

In 2019, Zarubezhneft Group subsidiaries with production activities in the Arctic zone of the Russian Federation (Zarubezhneft-Dobycha Kharyaga LLC and JC RUSVIETPETRO LLC) continued working on biodiversity preservation as per approved programs. The observation program of established lists indicating specimens for different operating regions is included in the Environmental Monitoring Program. In 2019, Zarubezhneft-Dobycha Kharyaga LLC updated the Biological Diversity Preservation Program at the Kharyaga license site based on inventory of biota and identification of species that are indicators of the sustainable state of ecosystems at the Kharyaga field. Implementation of the Biological Diversity Preservation Program is scheduled for 2020–2021.

At the end of 2019, a Cooperation Agreement was signed between the Ministry of Natural Resources and Environment of the Russian Federation and Zarubezhneft JSC, providing for joint activities under the federal project on Biodiversity Preservation and Development of Ecotourism in the context of the National Ecology Project.

Caring for the Far North’s fragile ecosystem has traditionally been one of the Company’s priorities. In 2019, JC RUSVIETPETRO LLC released about 1,000 juvenile fish of valuable species into the Usa River (the Pechora River basin). Since 2014, JC RUSVIETPETRO LLC has released more than 801,000 juvenile fish of valuable species into the Pechora River basin.

In accordance with the Standard Procedure for Search and Evaluation of New Projects, the Company pays special attention to environmental factors and evaluating environmental risks. All projects undergo an Environmental Audit, the main criterion of which is that the contract area does not contain any nature reserves. During project implementation, environmental impact is evaluated and measures are developed to reduce fragmentation of landscapes and the area of disrupted territories.

Zarubezhneft JSC has uniform HSE requirements to contractor organizations. The regulations adopted within the Company establish similar requirements for compliance with environmental standards both by the contractors operating within the Company and Zarubezhneft JSC subsidiaries. It is prohibited to collect mushrooms and berries or to hunt and fish in the area where the Company implements its projects.

Energy Saving Program

GRI 302-4

The Energy Saving and Energy Performance Improvement Program for 2019 was developed in December 2018Order No. 18 dated December 2018, 424..

The following main principles were applied for program development:

  • lean production policy based on measures with a payoff period from 3 to 5 years;
  • development of measures to decrease specific energy costs per unit of production, oil containing fluid treatment, and formation pressure maintenance in the Upstream segment, raw materials refining in Downstream segment, and decrease of annual power resources consumption in the Service and Other Assets segment;
  • engagement of all personnel of the enterprises in saving power resources;
  • engagement of secondary power resources and production waste (APG, spent oil waste, etc.) in the production process.

This program is a continuation of the Power Saving and Energy Performance Improvement Program that was implemented in Zarubezhneft Group in 2018. The main goal of developing and implementing the program for 2019 is to decrease product self-costs in Zarubezhneft Group production business segments, and, consequently, to enhance competitiveness within domestic and global markets.

The program decreases specific power resource costs for producing oil-containing fluid (OCF) in the Russian segment’s oil-producing subsidiaries by at least 4.0% as compared to the level of 2015. The 2019 Energy Saving Program target milestones include developing and introducing new measures (along with the measures introduced in 2016-2018) with due regard to the peculiarities of the segmented activity, organizational structure, and the specifics of Zarubezhneft Group activity as a whole.

The overall economic benefit due to the Energy Saving Program implemented in Zarubezhneft Group in 2019 was equal to 1.908 MM RUB, or 57,983 tons of oil equivalent (toe), including savings of:

  • 1.377 MM RUB (46,692 toe) in the Russian segment;
  • 72.2 MM RUB (2,116 toe) at JV Vietsovpetro;
  • 18.5 MM RUB (772 toe) at Brod Oil Refinery A.D. and Modriča Motor Oil Plant A.D.

The energy resources saving activities and the program measures introduced in all Zarubezhneft subsidiaries in the financial year made it possible to reduce specific energy consumption costs for OCF production to the level of 2015 in the Exploration and Production segment, and consequently to increase energy efficiency indicators of each individual subsidiary and of Zarubezhneft Group as a whole.

In 2019, 61 measures were introduced. Due to the shutdown of Modriča Motor Oil Plant A.D. and Brod Oil Refinery JSC plants for repairs and a lack of raw materials, only organizational measures were implemented in 2019.

Changes in specific energy consumption for oil-containing fluid production by Zarubezhneft JSC oil production enterprises, toe / thous m3 (Russian segment)
Changes in specific energy consumption for oil-containing fluid production by Zarubezhneft JSC oil production enterprises, toe / thous m3 (Russian segment)

In the financial year, specific energy consumption for OCF production by the Russian segment oil production enterprises was reduced by 24.8% compared to the 2015 level

Actual energy consumption figures in 2015-2019, the Service and Other Assets segment
Фактические значения потребления энергоресурсов сегменте «Сервисные и прочие активы», т у. т. (сегмент«Сервисные и прочие активы»)

The Service and Other Assets segment enterprises decreased energy resources consumption indicators by 6% compared to 2018, including:
Giprovostokneft JSC –9%;
VNIIneft JSC –14%;
Arktikmorneftegazrazvedka JSC +8%.

Energy Efficiency Projects


  • Industrial implementation of the Energy Performance of Oil and Gas Enterprise analytical information system (EPOGE AIS).
  • Low-pressure compressor station commissioned at the Central Production Facility (CPF) Severnoye Khosedayu to use additional gas for power generation.
  • Generator equipment overhaul repairs (gas-turbine plant, gas piston generator unit, diesel generator unit), conversion of gas piston generator unit to operate on purified gas.

Zarubezhneft-Dobycha Kharyaga LLC

  • Construction of 6 kV overhead line for a new shift camp with plans to arrange electrical heating in buildings when gas is supplied to the boiler room.
  • Operational optimization of pumping equipment control stations (ground-based electrical equipment (GEE).
  • Deployment of the EPOGE AIS at the enterprise’s process facilities.

JV Vietsovpetro

  • Installation and use of fuel flow and power generation metering system at the jack-up rig.
  • Power supply of vessels moored sidewise from the electrical power supply system while docked at a port.
  • Connection of Tam Dao-1 jack-up to the unified centralized power system.

In general, the activities carried out in 2019 contributed to stabilizing the enterprises’ energy costs, further developing energy savings, and improving Zarubezhneft Group’s energy performance.

Renewable Power Sources

By diversifying their businesses, oil and gas companies rely on their unique experience in onshore and offshore drilling, oil and gas refining, transportation and installation operations, and organization trading operations. Oil and gas companies expand their activity in RES through development of their own expertise, purchase of core assets, and through cooperation with leading suppliers of technological equipment and project developers. Following this trend (the leaders such as Total, BP, and Shell, etc.), Zarubezhneft JSC also considers its participation in RES projects.

Over the long history of successful projects, Zarubezhneft JSC has accumulated extensive experience communicating with the leadership of developing countries that are currently motivated to develop RES in their regions.

In March 2019, the Zarubezhneft JSC Board of Directors considered the issue of developing RES projects, and in June 2019, a new Department for Development of Renewable Energy Sources (DDRES) was created as a structural subdivision of the Company to implement phased development of its own expertise, as a related business, which would be an additional factor in improving the sustainable development of its own structures.

Since the DDRES was established, a project screening funnel was formed in accordance with the developed criteria and primary approaches defined for selecting regions/countries with potential for RES projects. In 2019, the passport for business process R-8: RES Development was developed and approved during integration of a new area in the Corporate Center. Twenty projects in the following countries were considered: Vietnam (nine projects), Cuba (two projects), India (three projects), Bosnia and Herzegovina, the Russian Federation, Uzbekistan, Turkey, Kazakhstan, and other countries corresponding to the main business focus.

Within this area of activity, partner relationships were established with both international and Russian companies to implement the RES projects, and cooperation was established with process equipment leading suppliers and project developers.

Work is ongoing to search for and analyze the feasibility of taking part in RES projects in the countries of presence and in new perspective markets of the RES core business.