Despite the wide availability of waterWorld Resource Institute. in Russia and the less pronounced impact of the oil and gas industry on the consumption of fresh waterWater in the Energy Industry (BP International, 2013). than other sectors of the economy, improving the efficiency of water use and maintaining clean surface water and groundwater are very important objectives of the Company.
The HSE Policy of PJSC LUKOIL in the 21st Century contains obligations on the efficient use of natural resources, including water, and is aimed at:
- minimizing the consequences of business activity, including a reduction in the use of water resources
- reducing production dependence on possible adverse external factors, including natural ones (droughts, the drying up of surface water bodies, pollution of groundwater sources)
The bulk of LUKOIL Group’s production activity in Russia is performed in regions that do not now experience fresh water shortages. However, in other countries we factor in such potential risks as a shortage of drinking water, as well as possible droughts or floods, which could lead to water supply interruptions, a breakdown in the supply chain, and increased operating costs.
Prompt risk identification enables us to take corresponding measures (to install modern equipment, including that which reduces water use) to facilitate more efficient water use. Our basic approach to resolving the issue of sustainable water use is to introduce systems for reverse water supply and the reuse of water at production enterprises and make the optimal utilization of water intake, including oil field water. New production facilities are equipped in all cases with systems for reverse water supply and the reuse of water and treatment facilities.
|Volume of reverse water supply||2,287.8||2,371.9||2,253.1|
|Volume of reused water||908||930.6||875.5|
Comment. The fall in the volume of formation water produced with oil is due to a decline in oil production in Russia as a result of external limitations imposed under an agreement with OPEC.
Projects to provide local communities with drinking water are implemented as part of our social partnerships with the southern regions of Russia and in foreign countries with a hot climate.
Through the implementation of the LUKOIL Environmental Safety Program we significantly reduced water consumption from natural sources: this indicator fell by 7.5% from 2015 to 2017.
Low levels of fresh water consumption are maintained by subsidiaries in all main production lines of business. In these conditions, general indicators of water withdrawal and water consumption are significantly influenced by electric power engineering subsidiaries, which are large consumers of water (used for steam generation and cooling equipment in central heating and power plants). The availability of these assets is a special feature of the LUKOIL business model in comparison with other oil and gas companies. In 2017 the volume of water used for its own needs by electric power engineering subsidiaries amounted to 65.1% of the water consumption used for its own needs by Russian subsidiaries of LUKOIL Group.
|Total water withdrawal by LUKOIL Group subsidiaries in Russia, including:||526.8||522.2||511.1|
|а) by types of business activities|
|Electric Power Engineering||350.1||345.1||331.9|
|Oil and Gas Production||112.4||112.3||109.5|
|Oil Refining, Gas Processing, Petrochemicals||62.9||63.3||68.5|
|b) by source of water withdrawal|
|from surface water bodies||305.9||297.4||279.7|
|from groundwater sources||78.7||77.1||76.1|
|from other sources (central water supply networks, etc.)||142.2||147.6||155.3|
|Water consumption for its own needs of LUKOIL Group subsidiaries, including:||413.1||415.9||376.4|
|а) by types of business activities|
|Electric Power Engineering||276.1||275.0||245.0|
|Oil and Gas Production||101.1||100.3||96.6|
|Oil Refining, Gas Processing, Petrochemicals||34.5||39.1||33.5|
|a) by purpose|
|production needs (excluding consumption to maintain formation pressure)||304.8||307.4||278.2|
|formation pressure maintenance||79.2||76.4||74.0|
Note. The water intakes of LUKOIL Group subsidiaries are also used to supply nearby enterprises.
|Oil and Gas Production, cubic meters/tonnes of reference fuel of produced hydrocarbons||1.0||1.0||0.95|
|Oil Refining, cubic meters/tonnes of refined oil||0.5||0.6||0.5|
|Petrochemicals, kg/tonnes of processed raw stock||12.8||6.2||7.3|
|Product Marketing and Distribution, cubic meters/tonnes of sold petroleum products||0.047||0.055||0.065|
|Midstream, cubic meters/tonnes of transported oil and petroleum products||0.045||0.039||0.017|
Thanks to measures to decommission central heating and power plants equipment, the specific water consumption indicator at electric power engineering subsidiaries is falling. For example, in 2016-2017 a large unblocked section of the Krasnodar CHPP (LUKOIL-Kubanenergo) was decommissioned.