Rosneft Invests more than 36 Billion Roubles in Natural Rehabilitation Activities in Khanty-Mansi Autonomous District--Yugra over the Past Two Years

Rosneft has invested more than 36 billion roubles in environmental protection and renovation in Khanty-Mansi Autonomous District--Yugra over the past two years. The funds were spent on reclamation of historical heritage lands, development of the pipeline integrity system, improvement of the operational response system, and increasing of the industrial waste recycling process efficiency.

In 2019 alone, the Company’s investments in natural recovery in the Khanty-Mansi Autonomous District--Yugra exceeded 24% of the total volume of core funds.

Rosneft is stepping up its activities in the main areas of the programme to improve the reliability of the pipeline system in Khanty-Mansi Autonomous District--Yugra. The specific frequency of pipeline failures in the region decreased by 17.4% compared to the previous year, and the number of failures decreased by 14.6% in 2019. The total length of the operating field pipelines of the Company’s enterprises in Khanty-Mansi Autonomous District--Yugra is about 27,000 km. This is approximately 32% of the total stock of operating oilfield pipelines of Rosneft.

In 2019, the Company’s overall pipeline system reliability capex and operating costs in the region amounted to about 11.8 billion roubles or about 51% of Rosneft’s total expenses for this purpose. In 2019, almost 8,500 km of field pipelines were covered by diagnostics and industrial safety expertise in the Khanty-Mansi Autonomous District--Yugra (a 12.5% increase compared to 2018), by inhibition more than 8,000 km of field pipelines (almost 600 km more than in 2018), and about 844 km of field pipelines were reconstructed and repaired.

The Company pays special attention to land recultivation. Last year, Rosneft recultivated over 800 hectares at its licence areas in Khanty-Mansi Autonomous District--Yugra, with 763 hectares of those excluded from the pollution register. The rate of rehabilitation of disturbed lands in the licence areas of the region reaches on average 400-500 hectares every year. The Company’s producing enterprises in Khanty-Mansi Autonomous District--Yugra, including Nizhnevartovsk Oil and Gas Producing Enterprise and Varyeganneftegaz, have fully completed the historical heritage soil recultivation programme. Restoration of disturbed properties and characteristics of lands and ecosystems is a priority during rehabilitation.

Winter recultivation is considered an effective method of rehabilitation work in the district. The winter recultivation method is convenient for cleaning the areas inaccessible during the warm season, given the high water cut and marshy areas of the region. The preparatory and technical stages of winter reclamation include identification of places of arrival at the site of equipment, construction of access roads and pipeline crossings, organization of site cleaning and soil processing.

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June 26, 2020