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HEALTH AND SAFETY

Preservation of life and health of people working at the Company’s facilities, safety of the population living in the regions of its activity, protection of the environment and society from risks in the field of industrial safety are the main values and priorities for Rosneft and the Group Companies in the implementation of production activities.

Such principles dictate the need for the formation and continuous improvement of the Company’s management methods and corporate culture: identifying strategic priorities, effective Policy, key performance indicators in this area and implementing appropriate measures in the field of health and safety (HS) for their implementation, including issues related to health, safe operation of vehicles, fire, radiation safety and blowout response, integrity of production facilities, prevention of explosive and emergency situations and response thereto.

HS management at Rosneft and in the Group Companies is implemented within the framework of the Integrated Health, Safety and Environment Management System (HSE IMS) and is determined by the adopted HS Policy.  The main methods for implementing the HS Policy provisions and achieving the set goals is the implementation of the HS legislation requirements; identification of hazards and HS risk management; as well as identification and effective use of all available opportunities for further improvement of results in this field. A systemic approach to the requirements of labor protection, industrial safety, operational reliability, safe operation of vehicles, and fire safety is implemented within the framework of the HSE IMS. It consists in the development and implementation of a number of in-house standards, regulations and guidelines, which are regulated by both national legislation and adopted as additional voluntary commitments, and are successfully applied to further reduce the level of injuries and accidents, improve the HSE results in general and to continuously improve the HSE IMS.

Rosneft cooperates with partner companies in order to study and apply the best international HS standards and practices subject to expediency and non-contradiction to the legislation requirements; by collaborating with the Group Companies, Rosneft develops and implements appropriate target programs, actively conducts information, educational, outreach and motivational work in the HS field with the Company’s personnel and employees of contractors. 

OCCUPATIONAL SAFETY AND HEALTH

Rosneft and the Group Companies believe that ensuring safe working conditions is their primary task in the field of occupational health and safety (OHS), which is considered as the system for preserving the life and health of workers during their work.

The Company solves this task through the prioritized fulfillment of state regulatory requirements for labor protection, taking into account the specifics of the oil and gas industry, scale and specifics of the operating environment of its activities; up-to-date scientific achievements, including those of the Company’s own scientific centers; interstate and national standards; as well as voluntary additional commitments and procedures. Thus, for example, in the course of hazard identification and risk management, OHS as one of the main methods for achieving the goals in this area established by the requirements of the Company’s HSE IMS in accordance with OHSAS 18001 utilizes the results of the special working conditions assessment mandatory in accordance with the requirements of labor legislation.

The system approach applied at the Company to ensure OHS is the unity of:
a) organizational management structures and duties established for officials and blue-collar workers;
b) implemented procedures and the procedure for their functioning, including planning, organizing and implementing the measures designed to further improve working conditions;
c) regulatory (laws and any normative legal acts, local regulations, instructions, action plans, etc.) and recording (registration logs, certificates, work reports, etc.) information documents.

The OHS requirements established by the legislation and the Company’s in-house regulatory documents are communicated to employees using the established procedure and are mandatory for all employees of Rosneft and the Group Companies, other persons located on the entire territory, in all Company’s buildings and facilities, as well as in other established cases. 

To achieve the Company’s long-term goals in ensuring the safe working conditions for employees established by the Rosneft-2022 Strategy, the Company develops and implements various targeted programs, such as the HS Leadership Awareness and Occupational Safety Enhancement Program, Golden Occupational Safety Rules Implementation Program, etc.

Rosneft’s HS Leadership Awareness and Occupational Safety Enhancement Program

The Program covers executive managers at all levels ranging from those operating at the Rosneft’s Corporate Center to the structural units of the Group Companies and teams performing works at production facilities.   Its main purpose is to further improve the corporate culture level through the application of practical methods for managers contributing to development of a sense of conscious leadership in occupational safety to perform the tasks set in the HS Policy; assist managers in developing the right attitude to the issues of labor safety and understanding the importance and the need for personal actions to demonstrate their commitment to the HS issues to their subordinates.

In accordance with the in-house regulatory document developed within the framework of the Program, the standard criteria of HS leadership are approved for heads of the Group Companies at all executive management levels on an annual basis, thus forming and approving their personal leadership commitments, as well as objectively assessing their performance, performing consolidation and analysis of the summary results for the year.

A set of measures is implemented as an important direction of the said Program to motivate employees to work safely, develop leadership qualities and acknowledge their accomplishments in HS as the “Safety Leader”. Within the framework of these activities, the Company is promoting the idea of ​​safe work and zero traumatism, introducing financial incentive systems for the Company’s employees and contractors, as well as developing mechanisms to improve the industrial safety level, prevent injuries and reduce the accident risks, thus encouraging the exchange of knowledge and experience in HS between the Company’s enterprises and implementing medical and preventive measures to promote healthy lifestyle, etc.

Golden Occupational Safety Rules Implementation Program

Since 2014, the Company has put into practice the Golden Occupational Safety Rules, which contain the requirements for the safe performance of the types of work selected on the basis of the production experience of the leading companies in the oil and gas industry, as well as the analysis of accidents, incidents and breakdowns that have occurred at Rosneft and in the Group Companies.

Since 2017, work on the application of the Golden Occupational Safety Rules in the Company has received a new impetus: a broad campaign has been initiated to consolidate the knowledge of the Rules by employees. To this end, the Company actively involves all corporate communication channels to solve this task and conducts training program and various motivational activities (creative contests, quick interviews, a series of the Company’s media publications, etc.).  Printed and video appeals to the Company’s employees and contractors made by top managers and Rosneft’s CEO on the importance of complying with the Golden Occupational Safety Rules at the workplace have been published, and the design of the printed version of the Rules has been improved.

In 2017, more than 300 Company’s thousand employees and contractors were tested for knowledge of the Rules as part of implementing the Golden Occupational Safety Rules.

Program of measures to improve the provision of employees with personal protective equipment (PPE), including safety clothes and footwear

The Program is aimed at further improvement in the context of:

  • improving the quality and level of protective properties of PPE distributed among the Company’s employees;
  • systemic arrangement of PPE supplies as part of the system of central PPE supply for employees;
  • monitoring of how employees use PPE.

The Program carries out large-scale activities, including:

  • work on further development of the Company's regulatory PPE framework, in particular, updating Rosneft’s Regulations “Requirements for Personal Protective Equipment and the Procedure for Providing PPE to the Company's Employees", Technical Requirements for various types of safety clothes approved in the form of the Company Standards (STO);
  • introduction of innovative safety footwear with industrial pre-testing and consideration of the relevant results obtained;
  • improvement of the quality control system for the PPE supplied;
  • continued close cooperation on PPE issues between the Business and Functional Units of Rosneft, the Group Companies, trade unions and Company’s employees;
  • training of designated persons (representatives of Rosneft and the Group Companies) in methods for controlling the protective properties of safety clothes and footwear, and other activities.

Activities within the framework of the annual Workers' Memorial Day

Every year on April 28 as part of the Workers' Memorial Day, the Company carries out a number of activities aimed at attracting maximum attention to safety at work and additional involvement of employees to addressing this issue in the course of their activity.   Thus, on 28 April 2017, within the framework of the Workers' Memorial Day, the Company launched an intranet information portal “Occupational Safety and Health, Industrial and Fire Safety. Ecology”, the electronic pages of which included all the necessary and useful information for employees on occupational safety. The Company’s communicated address of the HSE Vice President, held information meetings on occupational safety and arranged an employee survey. Quizzes and competitions on knowledge of occupational safety requirements were held in the Group Companies. Work is underway to automate HS business processes, including, inter alia, accidents data collection and analysis system. This work will allow us to integrate the Company's HS activities in the business planning processes, to receive and analyze all essential information on occupational safety issues. 

INDUSTRIAL SAFETY

The industrial safety (IS) activities implemented by Rosneft and the Group Companies are aimed at reducing the risks of accidents, equipment failures, avoiding accidents at work, assisting the Company’s employees in forming the culture of safe production and being intolerant to industrial safety violations.

These objectives underlie the Company’s industrial safety management system (ISMS) organically integrated into the HSE IMS and the general management system and comprise a set of interrelated organizational and technical measures implemented by the Group Companies (GC) operating hazardous production facilities (HPFs) in order to prevent accidents and incidents at HPFs, to localize and eliminate consequences of such accidents.

A distinctive feature and advantage of this system is that the Company extends the scope of its application at HPFs of all four hazard classes, which is much higher than the statutory requirements for the creation and operation of ISMS at organizations operating I or II hazard class HPFs. This approach ensures the uniformity of IS management methods throughout the Company and allows achieving a high level of IS at all Group Companies operating HPFs, at which the risk of accidents and incidents in the operation of these facilities is minimal and corresponds to the level of technology development, as well as the state of GC development.

The main purpose of this system is the implementation of the IS Policy goals adopted by the Company, including: 

  • licensing of production activities (operation of explosive and chemically hazardous industrial facilities, etc.);
  • development (introduction of changes) of IS declarations, examination of IS declarations;
  • civil liability insurance in the HPF operation;
  • elimination of violations following the instructions issued by Rostekhnadzor;
  • IS examination of buildings and structures;
  • IS certification of the personnel.
  • identification and analysis of accident risks at HPFs; planning and implementation of preventive measures to reduce the risks, including opportunities (including when performing work/rendering services by third party organizations), as well as their timely correction in case of any changes (the so-called change management);
  • implementation of production surveillance (PS) over observance of the IS requirements;
  • provision of safe use of technical devices at HPFs by means of technical diagnostics and IS examination of technical means and equipment;
  • participation of GC employees operating HPFs in identifying hazards, assessing the risks of accidents, developing and implementing measures to reduce such risks;
  • information support of IS activities.
  • development and implementation of IS targeted programs of activities.

Similar to the occupational safety, for the purpose of achieving the Company’s long-term goals in ensuring trouble-free production activities established by the Rosneft-2022 Strategy, the Company develops and implements various targeted IS programs, in particular, the Pipeline Reliability Enhancement Program and others.

Pipeline Reliability Enhancement Program

Integrity of the equipment at the Company’s Business Units is given special attention. Thus, Business Unit “Upstream” continues to implement the Pipeline Reliability Enhancement Program.

The Program includes a set of measures for reconstruction, overhaul, maintenance, diagnostics (including in-pipe), inhibition and monitoring of field pipeline corrosion. It is based on a risk-based methodology. All planned activities are implemented with the use of modern technologies, materials, shut-off and control valves and pipe products.  The Program implementation allowed reducing the level of specific accident rate of field pipelines in 2017 by almost 7% compared to 2016 (excluding Bashneft facilities). 

In addition to this important result, in 2017, the Company introduced a pipeline prioritization procedure aimed at ranking the field pipelines and identifying facilities at risk of failure. The ranking results were used to develop a complex of measures for the reconstruction and overhaul of pipelines. In 2017, the procedure was implemented in 11 Group Companies (GC). In 2018, works are underway to extend the risk-based approach based on the prioritization of pipelines for all oil producing OG.

The Company continues its work on accounting automation and pipeline failure recording. For this purpose, the Company uses OIS Pipe software, which currently enables the automated accounting of field pipeline failures. At the end of 2017, 22 Group Companies were connected to the system. In 2018, it is planned to expand the scope of OIS Pipe operation to the facilities of East Siberian Oil and Gas Company JSC.

Since 2015, Business Units “Oil Refining” and “Petrochemical” have been implementing programs aimed at ensuring the integrity and safe operation of industrial pipelines. The programs are intended to be used in replacing chrome-molybdenum pipes with austenitic welds, replacement of carbon steel pipelines with an expired standard service life, elimination of dead-end sections of piping, replacement of piping components, the material design of which does not meet the design and operating conditions.

FIRE SAFETY

Rosneft and the Group Companies are carrying out systematic work to ensure fire safety at production facilities. The Company has set up and is currently operating the unified Fire Safety System aimed at preventing fires, ensuring people’s safety, protecting property in case of fire, and preventing third parties from fire damage. The fire accounting system allows timely detection of shortcomings in the organization of work engaged by the Group Companies to ensure fire safety and development of the necessary corrective measures.

For the purposes of conducting effective fire prevention work at the Company’s facilities and effective fire extinguishing, it was decided to establish RN-Fire Safety LLC, which includes almost 150 fire units equipped with modern fire fighting devices, vehicles and highly effective extinguishing agents. Creation of own fire protection system allowed us to improve the manageability of corporate fire departments, significantly shortened the time necessary to concentrate the necessary fire extinguishing forces and equipment at the Company's facilities, made it possible to pursue a common fire safety policy and optimize the performance of corporate programs.

The Company implements targeted specialized programs to improve the material and technical base and business process of providing fire protection at facilities. 

Fire safety audits are conducted at the Group Companies on a regular basis. In particular, as a result of such audits, nearly 18,000 independent fire risk assessment activities were held at the Company’s sites by the end of the last reporting year 2017.  Based on the deliverables achieved, programs have been developed and are successfully implemented to maintain the compliance of facilities with the fire safety requirements.

Work is underway to ensure fire safety of residential premises at the Company’s and contractors’ production facilities (mobile living units, bunk-houses in shift camps, etc.), the main volume of which was fulfilled in the reporting year 2017. Adequate level of fire safety at these facilities is monitored on a regular basis.

Based on the results of independent audits assessing the compliance of oil refining and petrochemical facilities with the fire safety requirements, programs were developed to bring the facilities of oil refineries and petrochemical plants into compliance with the fire safety requirements. In addition, the target indicators of the main directions to provide fire protection at the Company's facilities have been developed and put into effect. Achieving such indicators will improve the fire safety at the Company's facilities, reduce the damage caused by potential fires, and allow avoiding deaths in fire emergencies.

More than 8 thousand complex and special tactical exercises, command-staff training, fire-tactical exercises and exercises in case of the Fire Hazardous Situations are held at the Company's enterprises on an annual basis. In 2017, about 175,000 people took part in these events (personnel of fire departments and employees of protected facilities).

ROAD-TRAFFIC SAFETY

Rosneft and the Group Companies carry out significant work on ensuring the road-traffic safety during execution of works related to the Company’s activities. In 2017, the Company’s Regulations “Vehicle Safety Management System” were put into effect. It applies to Rosneft, the Group Companies, as well as contractors and subcontractors. The Regulations establish the basic requirements for vehicles, special equipment, vehicle drivers, management and repair of vehicles and responsibility for road-traffic safety. Compliance with these requirements forms the basis of a single control system for the safe operation of vehicles. The purpose of the management system is to reduce the potential risks in transportation of people and goods, thus reducing the number of road accidents.

In accordance with the requirements of the Regulations, the Company held a set of measures, including:

  • more than 20 thousand drivers have been trained under protective driving programs;
  • the Company’s vehicles and contractors are equipped with onboard monitoring systems and video recorders.

Road-traffic safety campaigns

In the last reporting year 2017, the Company conducted four thematic road-traffic safety campaigns comprising of control and preventive measures, including “Safe Road”, “Caution, Children!”, “A Day Without a Car” and “We Vote for Road Safety 2017”.

HS COOPERATION WITH CONTRACTING ORGANIZATIONS

Rosneft and the Group Companies realize the importance and control the execution of the HS requirements by the divisions of contracting organizations rendering services/performing works at their facilities. In particular, in support of this process in 2017, a number of decisions were adopted at the corporate level regulating additional HSE requirements for contractors not only at the stage of the contract implementation, but also at the qualification stage of the procurement procedure.

The Company informs employees of contracting organizations of the HSE risks related to their activities in rendering of services/performance of works, consults with contractors and counsels them in case of HSE changes, implements the necessary measures in respect of their activities related to relevant HSE risk management, including change management. In addition to the regular channels of communication, the procedure “Hour of Safety” is widely applied for these purposes. It is provided by the relevant Company’s Regulations and implies regular meetings of employees from the structural units of the Group Companies, where various actual HSE subjects are discussed and decisions are made. Representatives of contractors may be invited to participate in these meetings.

COOPERATION WITH EXTERNAL ORGANIZATIONS

Cooperation with public authorities

Rosneft is actively involved in efforts to improve the regulatory framework of the Russian Federation in the field of Health, Safety and Environment (HSE). For example, in 2017, Rosneft employees participated in the discussion of 128 draft regulatory legal acts in the field of Health, Safety and Environment received from public authorities and management, including ministries, for the purpose of assessing their regulatory impact and establishing requirements and provisions (draft laws, draft resolutions of the Government of the Russian Federation, draft orders of Rostekhnadzor, ministries), most of which were provided with proposals and additions.

In addition, Rosneft employees conducted joint activities with the Scientific and Technical Council of the Federal Service for Ecological, Technological and Nuclear Supervision for the development of the safety manual “Guidelines for the Classification of Technological Developments in the Field of Industrial Safety at Hazardous Production Facilities of Oil and Gas Complex”. This manual is an important tool for the classification of man-induced events in the field of industrial safety in the oil and gas industry.

HS and fire safety cooperation with partner companies

In cooperation with partners, Rosneft adopts valuable international experience in HS and fire safety.

Thus, in 2017 within the framework of the 21st St. Petersburg International Economic Forum, Rosneft and BP entered into the Health, Safety and Environment Cooperation Agreement aimed at sharing best practices, information, technologies in order to increase the level of safety and response in these areas.

In October 2017, a workshop meeting “Global Leadership in Industrial Safety” was held in Moscow with the participation of Rosneft top managers. The meeting participants summed up the results of activities in industry areas by taking into account the comparison data of the results achieved by the world’s leading oil and gas companies and determined Rosneft’s basic HSE leadership principles.

With the aim of sharing experience and best practices in the field of HS, the Company’s employees visited the production facilities of the partner companies in Rotterdam and Baku.  Mutually beneficial business cooperation with partner companies in the field of HS continues to be implemented.