Health and Safety

NOVATEK is fully committed to putting the life and health of its employees above operational results, and is aware of its responsibility for ensuring accident-free operations and safe labor conditions for its employees, as well as protecting the health of the population in the areas in which it operates.

NOVATEK has in place an occupational health and safety management system which is part of a wider management system and ensures risk management based on the key principle of prioritizing prevention over incident containment and response.

The Company is engaged in exploration, production, processing and sales of natural gas and liquid hydrocarbons, which implies setting up complex technological processes for operating fire and explosion hazardous facilities. Operation of fire and explosion hazardous facilities requires that work and services at hazardous production facilities be performed in strict compliance with industrial safety laws.

To prevent accidents and incidents, and ensure accident containment and response at Class 1 and 2 hazardous production facilities, a unified industrial safety management system and industrial safety declaration were developed providing estimates and specifying activities for:

  • identification, assessment and forecasting of accident risks;
  • planning and implementation of accident risk mitigation measures;
  • coordination of activities to prevent accidents and incidents;
  • industrial control procedure; and
  • employees’ participation in the development and implementation of accident risk mitigation measures.

To compensate for the damage inflicted to third parties and the environment as a result of an accident at a hazardous industrial facility, all hazardous industrial facilities are insured in accordance with Federal Law No. 225-FZ On Mandatory Insurance of Civil Liability of Owners of Hazardous Facilities for Damages Inflicted by Emergencies at Hazardous Facilities.

Executives and specialists of subsidiaries and joint ventures supervised by Rostekhnadzor have been qualified for compliance with industrial security and safety rules in territorial bodies of Rostechnadzor. From among these employees, the Company set up industrial safety assessment commissions to evaluate staff that operates technical devices at hazardous production facilities.

Occupational health training is mandatory for all categories of employees and is offered in all controlled entities. Structural unit leaders, including top managers, take courses in training centers, while specialists are offered in-house training opportunities. For that, training programs were developed, and occupational health knowledge testing commissions were set up. In-house occupational health training and knowledge testing not only enable significant cost optimization but also save man-hours as such training and tests take place on the job.

In 2018, 11,119 employees completed occupational health training and safety certification in line with the approved training plan.

In 2018, 365 industrial safety and occupational safety compliance checks were carried out by commissions of subsidiaries and joint ventures with results documented in industrial control reports. Employees in charge submit monthly reports to their respective health and safety units specifying remedial actions. All violations are remedied within defined timeframes.

In 2018, NOVATEK ran programs of integrated and targeted audits of controlled entities for compliance with occupational health, industrial, fire and environmental safety requirements by NOVATEK’s committee. In the reporting year, the Company conducted integrated audits of four (4) Company entities, and targeted audits of eight (8) entities. Based on their findings, relevant reports were produced, and remedial measures were developed.

At the Company level, data are collected and analyzed regarding remediation of all findings of both scheduled and unscheduled audits carried out by the state supervisory authorities and integrated and targeted audits of the Company's committee.

To prevent accidents and incidents, each year the Company develops and consistently implements technical inspection, certification and test schedules for various types of technical equipment (external and internal inspection, hydrostatic and pneumatic tests, and industrial safety audits). In 2018, the Company performed industrial safety audits of 534 equipment items and extended their safe operating life.

To protect the rights of employees to occupational health-compliant workplace, special assessments of working conditions were performed to cover all workplaces. When workplaces with harmful working conditions are identified, a range of measures is first implemented to eliminate adverse factors. If these prove impossible to eliminate, the time of exposure to harmful conditions gets then restricted while the affected employee is granted all guarantees and compensations for operating in harmful working conditions. In the reporting year, 7,050 workplaces were certified. A special workplace certification process found 5,950 (86.4%) workplaces to have permissible conditions. No workplaces with hazardous working conditions were identified.

The Company also arranged for preliminary health screening and regular medical examinations for timely detection of contraindications and signs of occupational diseases. No occupational diseases were identified for the reporting period.

Workers engaged in certain high-hazard operations and exposed to high-hazard production environments (operation and maintenance of hazardous industrial facilities) undergo mandatory mental health evaluation.

The Company actively exercises its right to receive a 20% refund of mandatory social insurance payment that are duly transferred to the Social Insurance Fund of the Russian Federation to cover occupational accidents and diseases. These funds are mainly used to finance procurement of protective clothing and workplace certifications.