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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 where we operate.

In its pursuit to reduce the injury rate in production activities, the Company continuously improves approaches to occupational and industrial safety management. This safety is achieved through continuous analysis of production process to prevent accidents and incidents that may lead to production emergencies.

Below are listed the main principles that each and every Company employee must accept:

  1. Leadership of the Company management in HSE.
  2. Involvement of personnel at all levels in efforts to reduce operation risks.
  3. Personal responsibility of each Company employee for complying with the requirements to minimize operation risks that may cause personal injuries.
  4. Personnel motivation to seek potential for occupational safety improvements.
  5. Priority of prevention over reaction.

Pursuant to effective legislation, workplaces undergo special working conditions certification. As of 31 December 2019, 8,030 workplaces were covered by the assessments. The special workplace certification process found 6,816 (84.9%) workplaces to have permissible conditions. At workplaces with harmful working conditions a package of measures to eliminate or reduce harmful factors has been implemented. No workplaces with hazardous working conditions were identified.

To ensure continuous monitoring of employees’ health, preliminary and periodic medical examinations are carried out. All remote accommodation camps have medical offices equipped with the most up-to-date equipment and medical supplies and staffed with appropriately qualified medical personnel. During the reporting period 10,553 employees underwent medical examination and 3,658 persons took mental health examination, which represents 100% of the plan figures.

Our controlled entities have in place an occupational health and safety management system, which is part of a wider NOVATEK’s 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 industrial facilities is carried out in compliance with industrial safety laws. Group entities have obtained licenses to operate Hazard Class I, II and III fire, explosion and chemical hazardous industrial facilities.

As of 31 December 2019, 239 hazardous industrial facilities were registered in territorial bodies of the Russian Federal Environmental, Industrial and Nuclear Supervision Service (Rostekhnadzor), including

  • Class I (extremely high hazard) — 13 facilities;
  • Class II (high hazard) — 49 facilities;
  • Class III (medium hazard) — 161 facilities;
  • Class IV (low hazard) — 16 facilities.

For Class I and II hazardous industrial facilities, industrial safety management systems and industrial safety declarations were developed providing estimates and specifying actions for:

  • identifying, assessing and forecasting accident risks;
  • planning and implementing accident risk mitigation measures;
  • coordinating accident and incident prevention measures;
  • establishing industrial control procedures;
  • involving employees’ 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 Third Party Liability Insurance for Owners of Hazardous Facilities for Damages Inflicted by Accidents at Hazardous Facilities.

Executives and specialists of subsidiaries and affiliates that are subject to Rostekhnadzor supervision undergo routine certification on industrial safety rules performed by Rostekhnadzor’s regional commissions. From among these employees, industrial safety assessment commissions are set up to evaluate staff and permit it to work independently at hazardous production facilities.

Occupational health training is mandatory for all categories of employees and is implemented in all subsidiaries and affiliates. Unit managers, including top executives, take courses at training centers. To offer in-house training to white-collar employees, the Company has developed training programs and set up certification commissions to assess trainees’ knowledge of occupational health regulations. The 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 2019, 12,800 employees received HSE training and were certified in industrial safety, which is in line with the established training plan.

In 2019, standing safety and occupational health control commissions carried out 444 compliance checks in controlled entities. The results were documented in relevant reports and special measures were elaborated to eliminate identified noncompliances. Employees in charge submit monthly remedial action reports to their respective health and safety units to further analyze the risks of hazardous situations.

In 2019, 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 seven (7) 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 at hazardous operating facilities:

  1. Each year the Company develops and consistently implements technical inspection, certification and test schedules for various types of technical equipment (external and internal inspection, hydro- and pneumatic tests, and industrial safety audits). In 2019, the Company performed industrial safety audits of 476 equipment items and extended their safe operating life.
  2. The Company organizes drills and exercises on possible accident containment and response scenarios and actions for the personnel involved in the maintenance of equipment items, buildings, and structures within hazardous production facilities. In 2019, 4,382 training sessions were held.

Cooperation in the area of industrial safety

PAO NOVATEK is one of world’s leading producers of natural gas, including LNG. Industrial safety and the health of employees are our key priorities. We use state-of-the-art equipment and innovative technologies in our operational activities to ensure safety and efficiency as we operate in the harsh climatic conditions of the Russian Arctic region. For that reason, The Company attaches great importance to applying the world’s best practices in this area.

In January 2020, PAO NOVATEK and Total signed a Memorandum of Understanding in occupational health and industrial safety. Its main goal is exchange of respective best practices, expertise and know-how as well as familiarization of experts and managers with the most advanced methodologies in industrial safety.

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