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An independent environmental audit was undertaken to assess LUKOIL’s
environmental management system. This was carried out by an international
environmental consulting firm, according to terms of reference developed by
the EBRD.
The audit reported that LUKOIL is at the forefront of environmental management
development in Russia. It found that LUKOIL’s environmental management
compares favourably with other major Russian industrial and oil companies.
Furthermore, the audit reported that the company’s existing environmental
management system includes elements corresponding to or approaching current
international standards for environmental management.
The audit also identified areas that will require further improvements to
bring LUKOIL's environmental management practices in line with international
good practice. The areas which require particular attention include: strategic
environmental management, internal auditing practices, recording and
documentation procedures, establishing performance guidance, preventing
adverse environmental impact, risk management, and emergency response.
Required improvements to meet international good practice in the identified
areas will be addressed through the implementation of an Environmental
Management Action Plan (EMAP). This will be implemented within two years, and
will allow for compliance with ISO 14001.
In addition to environmental management issues, the corporate environmental
audit reviewed key environmental risks associated with LUKOIL and its
subsidiaries’ operations. The key environmental risks included associated gas
flaring, oil spills, waste management practices, and interaction with the
public. LUKOIL has developed a "Programme of Environmental Safety (PES) of
LUKOIL Operations for 1996-2000" to address these environmental risks at the
subsidiary level. This programme is at the final stages of implementation. The
company is also finalising an environmental safety programme for 2000-2003,
which will include action under the EMAP. The above-mentioned programmes cover
virtually all of the significant environmental issues and top-priority
environmental targets related to the operations of the company and its
subsidiaries.
Further corporate initiatives with respect to critical environmental issues
include programmes for increased utilisation of associated gas, waste
minimisation and improvement of waste storage practices, oil spill prevention
and pipeline replacement, soil remediation and land reclamation. Concerning
greenhouse gas emissions, LUKOIL completed a corporate inventory in 1999. The
review was performed as part of Russia’s obligations under the UN Framework
Convention "on Climate Change" and its Protocol on reduction of greenhouse gas
emissions. LUKOIL’s Environmental Protection Department is summarising the
inventory results from the company’s subsidiaries. According to preliminary
results, the company’s gas utilisation rate is approximately 80 per cent. A
programme for reducing greenhouse gas emissions will be included in the LUKOIL
Environmental Safety Programme for 2000-2003. With respect to soil remediation
and land reclamation, LUKOIL reclaimed approximately 12,000 ha of land in 1998.
Finally, LUKOIL has also developed a "Corporate Relations Programme for
Indigenous Populations of Northern Russia".
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