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.

NOVATEK Group set up industrial safety assessment commissions to evaluate staff that operates hazardous production facilities according to the annually approved schedule. Safety certification protocols are produced to document the results of staff knowledge tests. In 2017, 3,109 employees were assessed.

During 2017, 344 industrial safety compliance checks were carried out, with results documented in industrial control reports.

To prevent accidents and incidents, technical inspection, certification and testing schedules for technical equipment are developed annually and rigorously followed. These audits are registered with territorial bodies of Rostechnadzor (Federal Environmental, Industrial and Nuclear Supervision Service of Russia). In 2017, industrial safety audits were carried out on 255 equipment items.

In 2017, 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) entities, and targeted audits of eight (8) subsidiaries. Based on their findings, relevant reports were produced, and remedial measures were developed.

To protect the right of employees to occupational health-compliant workplace, special assessments of working conditions are 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 affected employee is granted all guarantees and compensations for operating in harmful working conditions, including screening and regular medical examinations for timely detection of contraindications and signs of occupational diseases. In the reporting year, the Company continued the certification procedure on workplaces. No hazardous working conditions were identified during the inspections. In 2017, NOVATEK Group workplace certification costs totaled approximately RR 2 mln.

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 2017, occupational health training costs amounted to more than RR 6 mln.

The Company’s subsidiaries actively use their 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. In 2017, such refunds across all subsidiaries totaled over RR 16 mln. These funds are mainly used to finance procurement of protective clothing and workplace certifications.