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HEALTH, SAFETY AND ENVIRONMENT

POLICY OF LUKOIL IN XXI CENTURY


LUKOIL Group’s strategic mission is to be a competitive oil and gas LUKOIL sets the following priorities: safe work conditions for
company, characterized by balanced business growth, highest quality its employees, health protection of the LUKOIL Group employees
standards, careful attitude towards environment, rational use of and of the local population in the regions of its presence, and
natural resources and commitment to social responsibility principles. environmental protection based on application of the best available
While being aware of its social responsibility, the Company intends technologies.
to contribute to long-term economic growth, social stability, prosperity To accomplish those goals, the Company has established an
and progress, thus preserving favorable environmental conditions and efficiently functioning HSE Management System that provides
ensuring the efficient utilization of natural resources in the regions for compliance with the fire safety requirements and also for
of LUKOIL Group’s presence, and it expects society to realize the emergency prevention and response. It is developed in line with
complexity and magnitude of the tasks faced by the Company. the Russian legislation and also with the national laws of the
LUKOIL Group’s social responsibility implies creation of decent countries of LUKOIL Group’s presence, based on the best practices
work conditions and pay, environmental safety and preservation of and certified for compliance with ISO 14001 and OHSAS 18001
cultural heritage. standards.

The HSE Policy of LUKOIL Group in the and improved automation of engineering process •  improved development and implementation
21st Century (hereinafter the Policy) sets management; process of available and new programs aimed at
the following goals: •  mitigation of impact, produced by operation continuous tracing and tackling of tasks in the area
•  higher utilization ratio of associated of LUKOIL Group companies on climate, biological of industrial, fire, environmental and occupational
petroleum gas; diversity of environmentally sensitive territories, safety, as well as emergency prevention;
•  application of the “zero discharge” principle including the Arctic zone of the Russian Federation; •  mitigation of man-caused environmental
for offshore field development; •  an improved HSE component, also due to impact due to newly commissioned facilities
•  increased output of eco-friendly fuels the increased reliability of process equipment, through improved quality of pre-design and
compliant with European standards; including pipeline integrity, its safe and project documentation;
•  efficient utilization of natural resources, uninterrupted operation, introduction of new •  improved efficiency of production control,
both those involved in the production process technologies and automated accident-prevention corporate supervision and internal audit in
and others occurring naturally in the regions of systems; terms of compliance with the legislative HSE
LUKOIL Group’s presence, through introduction of •  preparedness of the management of LUKOIL requirements at the facilities of LUKOIL Group
resource-saving and energy efficient technologies Group organizations, employees, emergency Organizations based on the introduction of
and use of alternative energy sources; rescue services and teams for possible accident, cutting-edge information technologies, methods of
•  consistent mitigation of negative fire and emergency-response measures, and also engineering diagnostics and remote monitoring in
environmental impact through introduction of higher preparedness and better equipment of line with the international standards ISO 14001,
best available technologies, equipment, materials firefighting and emergency rescue teams; OHSAS 18001.

To achieve the set goals, LUKOIL Group operate, international agreements and branch- •  hold all employees of LUKOIL Group
assumes the following obligations: specific and corporate regulatory requirements, responsible for compliance of their operations
•  implement the whole range of available regulating industrial, fire and environmental with effective HSE and emergency response rules
and   viable measures to prevent injuries, safety, occupational safety, prevention and and standards; introduce incentive measures,
occupational illnesses and accidents among preparedness for emergency response; ensure training and advanced training measures
employees, and to mitigate their consequences; •  assess the impact produced by planned as related to the employees of the Company
•  regard planned and implemented measures and implemented business activities, products and LUKOIL Group organizations;
aimed to prevent negative impact upon the and services upon the health of employees, •  ensure that all the organizations operating
employees, the local population and environment local population and upon the environment at in the territory of and/or on behalf of LUKOIL
as having a higher priority over those aimed, early stages of the planned activities; Group organizations, at all stages of a facility
rather, to mitigate the related consequences; •  assess production, professional, life cycle, conduct their work in compliance
•  ensure consistent and continuous environmental and fire risks at all stages of a with HSE and emergency response rules and
improvement of properties and characteristics facility’s life cycle; standards applicable across LUKOIL Group
of the impact produced by planned and •  make and implement all managerial and organizations;
implemented activities, products and services production-related decisions while taking into •  publicly inform the Company’s
upon employees, the local population and account significant environmental aspects, shareholders and employees of its activities in
environment, and also of the impact produced production, professional risks, environmental the area of industrial, fire and environmental
by consumption of natural resources, in keeping and fire risks aimed at their mitigation or safety, occupational safety, prevention and
with the current advances in science, technology prevention; preparedness for emergency response;
and society; •  plan and undertake integrated measures •  regularly interact with all parties interested
•  efficient control of greenhouse gases to preserve biological diversity: in the Company’s activities (general public,
emissions; -  seek to avoid operations in the habitats including the representatives of indigenous
•  continuously and regularly implement of valuable and specially protected plants and minorities residing in the areas of LUKOIL
measures to reduce losses of oil, gas, petroleum animals, in especially sensitive environmental Group’s presence, the legislative and executive
and gas derivatives, and prevent their release zones, in plant-vegetation seasons, during authorities, research organizations, etc.) on
into the environment; breeding and migration periods of wild animals, issues ensuring industrial, fire and environmental
•  introduce the results of advanced or minimize the impact when it is impossible to safety, occupational safety, prevention and
scientific research and innovative technologies cancel the operations within certain territories preparedness for emergency response;
to gradually reduce the specific consumption of during certain periods; •  ensure continuous improvement of the
natural resources, materials and energy, while -  reduce areas of disturbed lands, preserving HSE Management System in compliance with
maintaining the maximum possible output; landscape integrity; the requirements of the ISO 14001 and OHSAS
•  ensure compliance with legislation of the -  prevent or mitigate impact LUKOIL Group 18001 standards;
Russian Federation and national legislations employees and parties acting on behalf of •  ensure control over fulfillment of the
in countries where LUKOIL Group companies LUKOIL Group produce on wildlife; obligations assumed as part of the Policy.

This Policy shall cover PJSC LUKOIL and other organizations of LUKOIL Group, unless they are contrary to national
legislations of countries where LUKOIL Group companies operate.
Annex #4 to the 9th Meeting Minutes of the PJSC LUKOIL Management Committee, May 21, 2018

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