HEALTH, SAFETY, AND ENVIRONMENT (HSE)
Irkutsk Oil Company has been in business for ten years. Initially its environmental operations were geared towards compliance with environmental legislation, but by now environmental responsibility has become an integral part of the business.
Currently one of INK’s top-priority operations is continuous advancement of industrial safety, promoting employee workplace health and safety, and reducing negative environmental impacts.
LOYALTY TO ENVIRONMENT
Recognizing its responsibility to society and nature, Irkutsk Oil Company develops energy with a commitment to environmental protection and rational resource usage through constant improvement in the environmental performance of existing operations and by developing new projects in an environmentally sound manner. When conducting any operation, the company applies the basic principles of its environmental policy, as outlined below.
 Compliance with environmental legislation, governmental and internal corporate standards, and rules and regulations in terms of health, safety and the environment.
Prevention of negative environmental impacts and implementation of emergency response procedures.
Pursuing stated HSE objectives through proper conduct, assignment of roles and responsibilities, and setting of environmental goals and targets that are regularly reviewed and continuously upgraded.
Mitigation of the environmental impact of the company’s production operations through application of effective waste management and by reducing air pollution.
Supervision of contractors’ operations to ensure compliance with environmental policy principles.
Disclosure of environmental information, including results monitoring and interaction with stakeholders during investigations conducted for new projects.
Systematic employee HSE training and education, and environmental management system maintenance and development.
When setting the company’s operating goals, we maintain an open dialogue with all interested parties with a stake in environmental and industrial safety issues. We feel obligated to conserve nature, provide for the health of the local population, and the prosperity for our region. We endeavor to effectively employ all available resources to ensure safe working conditions, environmental protection, and industrial safety. Environmental policy is a pillar of sustainable business development. Compliance with its principles systematically drives improvements in safety, health, the environment, reliability, and efficiency.
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ENVIRONMENTAL ACTIVITIES
Working in close cooperation with independent environmental consultants and the European Bank for Reconstruction and Development, Irkutsk Oil Company has launched a company-wide program to monitor its activities in the sensitive area of environmental protection, including the following :
Taking into account the habitat of endangered plants, animals and birds;
Careful consideration of the use of ancestral lands occupied by indigenous ethnic minorities;
Improvement of waste management;
Monitoring of air emissions, soil, and surface water and groundwater quality to the fullest possible extent in zones where the company operates;
Other actions aimed at environmental protection.
The company is currently developing an environmental management system that by year-end 2010 will be integrated with the industrial safety system and introduced at all levels of INK operations. By the middle of next year, the company will obtain the corresponding certificates awarded by specialized international organizations.
In 2009, Irkutsk Oil Company spent some 30 million rubles on implementation of environmental programs. The environmental committee meets on a weekly basis, discussing all critical issues in terms of environment, society, and industrial safety.
The company has built incinerators at the Markovo and Yarakta fields for thermal waste processing. By year-end 2010, construction of a landfill for the use of domestic waste will be completed: waste from residents of the village of Verkhnemarkovo will be accepted at no charge. An up-to-date wastewater treatment facility has been constructed and is operating at the Yarakta field.
Moreover, Irkutsk Oil Company is implementing a project to reduce greenhouse gas emissions from the Yarakta field by re-injecting associated and natural gas into the respective formation instead of flaring it. The company is tackling the gas-flaring problem by constructing a gas cycling facility. This will allow 95% of the associated gas produced over the field’s life cycle to be used for enhancing condensate recovery. Gas re-injection will nearly completely eliminate all flaring of associated gas, making this project the first of its kind in the region of Irkutsk. Irkutsk Oil Company will consider the possibility of introducing injection operations in other fields which in turn may be a model for other oil and gas producers operating in the region.
HEALTH AND INDUSTRIAL SAFETY
Placing the top priority on prevention of industrial accidents and the reduction of injuries and occupational diseases, the company focuses on implementation of precautionary measures and investigation of industrial accidents.
For security and health protection, company personnel is provided with personal protection gear; safety arrangements and precautions are implemented for site operators and visitors.
Oil Spill Response Plans (OSRP) have been developed for the Yarakta, Markovo, and Danilovo fields, and a plan for the Ayan field is currently being developed. Moreover, the company has established agreements with specialized emergency organizations for the elimination of accidental oil spills and gas blow-outs. Emergency response training and fire drills are regularly conducted at the company’s facilities. Two fire departments are effectively operating at the Yarakta and Markovo fields.
Improvements in industrial safety at the company’s facilities are achieved through use of reliable equipment and the upgrading of technological processes.
Every Irkutsk Oil employee is insured against industrial accidents and must pass a medical examination. Expenditures on labor safety measures have been significantly increased from 9.6 million rubles in 2008 to 36.5 million rubles in 2010.
