Accidents, Incidents, Emergencies

NOVATEK has state-of-the-art notification and communication systems in place to promptly inform management and staff in the event of an emergency. In addition, the Company actively engages with local authorities, ensuring that information is promptly relayed to dispatch services, which inform local residents.

The Company also regularly carries out on-site inspections to assess the emergency response preparedness of its employees and evaluate the capabilities of in-house and external professional emergency response and rescue teams.

Since NOVATEK operates hazardous production facilities of hazard classes I, II, III, and IV, the Company pays particular attention to safety and potential emergency and incident response measures, with operational control provided by standing commissions, scheduled inspections of equipment carried out, civil liability insurance taken out for organizations operating hazardous production facilities, and employees trained in industrial safety.

Industrial safety management systems and industrial safety declarations have been developed for Class I and Class II hazardous production facilities. Operational control at the Company’s hazardous production facilities is provided by standing commissions. To mitigate the risk of potential accidents and incidents, NOVATEK carries out scheduled inspections of equipment, technical inspections and diagnostics of equipment, buildings, and facilities, taking out compulsory civil liability insurance for organizations operating hazardous production facilities, trains employees and arranges for their certification.

The initiatives implemented by NOVATEK enable us to successfully prevent major fires and respond to hazards as they occur. The Company invests in resources and technology to maintain and improve its fire safety system and conducts relevant training for employees.

The Company conducts emergency preparedness checks on a regular basis.

Due to the high concentration of the Company’s production facilities within a single region, the Company operates a relatively limited pipeline network. A significant proportion of the pipelines in operation are gas pipelines, which do not pose spill risks.

The Company is regularly replacing aging pipelines to help minimize spill risks.

To ensure the safe operation of its pipelines, NOVATEK:

• develops continuous pipeline integrity monitoring systems, including in-line diagnostics, the installation of leak detection systems, real-time monitoring of condensate flow imbalances, and regular aerial patrols of pipeline routes;
• regularly analyzes accident risks taking into account corrosion and deterioration;
• uses corrosion resistant materials.

In addition, NOVATEK maintains liability insurance during the operation of its pipelines to cover potential damage to third parties and/or the environment.

When carrying out hydraulic fracturing, the Company uses reagents that comply with global best practices and follows internally approved regulations that set quality requirements for water used to maintain reservoir pressure and injection into rock formations.

The Company’s system of measures for ensuring drilling safety is aimed at minimizing both man-made and natural impacts at all stages of operations. Although the Company was not engaged in offshore drilling and well development activities in the reporting year, its integrated approach to risk assessment and technology implementation helps minimize potential threats when performing such operations.

In accordance with its license obligations, NOVATEK implements safety measures at three stages of well construction:

• before operations begin: preparing design documentation in accordance with applicable laws and regulations, and contractor qualification assessment;
• during well construction and operation: continuous well condition monitoring, engagement of qualified contractors, allocation of responsibilities for operations in coastal waters, and designation of responsible employees;
• after production ends: equipment dismantling, well abandonment, land rehabilitation, wellhead condition monitoring, and environmental monitoring.

To ensure safety during hazardous work at well pads, NOVATEK has developed the Procedure for Organizing Simultaneous Drilling, Well Completion, Testing, Penetration of Additional Productive Formations, Well Pad Development, Operation, and Workover Activities at Well Pads. These guidelines are scheduled for rollout across production sites in 2026.

NOVATEK takes a responsible approach to spill prevention, even though oil and liquid hydrocarbons, including gas condensate, account for a smaller share of the Company’s total hydrocarbon production (17.8%).

The Company develops and implements spill prevention measures and response procedures based on spill thresholds.

NOVATEK has developed and maintains up-to-date oil spill prevention and response plans for facilities handling petroleum products, which include spill scenarios with the estimated scope of spill volumes and required financial support for implementing response measures.

All NOVATEK Group subsidiaries and affiliates have in place financial reserves to support the implementation of their oil spill prevention and response plans. To determine the required reserves, the Company relies on estimates of potential damage from environmental risks, including oil and petroleum product spills, and on environmental incident risk assessment data set out in the Risk Map for 2025–2027.

NOVATEK conducts trainings and drills so that employees can practice appropriate measures in case of a spill.

The contractor management system forms part of the supplier relationship management system.

Initial assessment of contractors’ OHS compliance is a core element of supply chain management. The Contractor Access System involves checking the level of contractors’ preparedness at the pre-qualification stage using criteria such as:

• availability of necessary documents and equipment of adequate quality;
• appropriate level of employee training; and
• all necessary occupational health and safety inspections conducted in a timely manner.

Contractors’ obligation to comply with OHS requirements is set out in the agreements they sign with NOVATEK. Contract agreements provide for, inter alia:

• the contractor’ liability for failure of its employees to comply with OHS regulations;
• the contractor’s obligations to provide its employees with serviceable and tested protective equipment, protective clothing, tools, and devices; and
• the Company’s right to monitor compliance of contractor employees with workplace OHS requirements and take measures to address violations and suspend work execution.

In the reporting year, to further improve the contractor management system, pilot tests were launched at several sites to monitor contractor employees’ actions using a video analytics system. Going forward, the Company plans to develop a system to incentivize contractor employees to comply with safety requirements.

Also NOVATEK also decided to roll out the electronic work permit system, including to contractors. The system automates the execution, sign-off, and approval of hazardous work permits, as well as work planning, suspension, and completion, and the authorization of trained and certified employees to perform such work.