LUKOIL IS A LEADER IN DECREASING ENVIRONMENTAL IMPACT

Tuesday, October 11, 2005

LUKOIL is within the three leaders out of the 75 major Russian companies in the environmental impact reduction rate from 2000 to 2003.

This is stated in “Social ecological responsibility and Russian business ratings” directory prepared by International Social ecological union and “Nera” independent ecological rating agency with support by the World bank.

Experts estimated activities of the companies based on the following major criteria: water consumption, waste water dumping, emissions from stationary machinery and vehicle transport, wastes generation and contaminated areas.

As results of LUKOIL’s environmental activities in 2000-2003 the relative volumes of contaminated emissions into the air, water consumption and waste water dumping are significantly lower (1.5-2 times) compared to the average in the industry. Over 4.3 thousand km of pipelines were repaired, 2.6 mln tons of hazardous wastes were reclaimed, 14.5 thousand hectares of faulted lands and 1.5 thousand hectares of oil contaminated lands were reinstated within the course of the Environmental program.

Information about the activities of LUKOIL and its subsidiaries on decreasing the environmental impact is published in “the white pages” of the Directory that are meant for companies which have voluntarily disclosed their social ecological reports.

Environmental safety is one of the priorities of LUKOIL which is the first Russian company to have obtained the international certificate of compliance with ISO 14001 standard. LUKOIL currently implements “The Program of environmental safety of LUKOIL Group for 2004-2008”. The Program provides for over 400 environmental measures with the overall budget of about 33.5 bln rubles.