Health and Safety

For Gazprom Neft, implementation of a leadership strategy is not only about achievement of the best production and financial performance. Upscaling of the business and achievement of new production horizons also require further improvement in the quality of environmental management and work to raise levels of safety in the workplace. Gazprom Neft is pursuing the ambitious goal of joining the leading global petroleum producers in terms of the standards of industrial, environmental and occupational safety that it seeks to adopt

Activities by Gazprom Neft in HSE and civil defense are based on established Company policy in these spheres, coordinated at head office by the Company’s Department for Industrial Safety.

Scheduled work continued in 2011 for the establishment of an HSE and civil defence system in compliance with the approved corporate strategy.

Progress is impossible without assessment of current HSE efficiency and the setting of goals. In 2011, the Company developed and successfully applied an integrated HSE and civil defense indicator. The single indicator unites measures of accident and injury rates, as well as measures of progress in implementation of fire safety, transport and environmental programs by subsidiaries. The Azimut IT control system was used to monitor indicator levels and progress in program implementation on a quarterly basis.

In 2011, the Company audited its system for control of health, safety, environment and civil defense aspects at key business units in crude oil production, refining, and product supplies. Such audits are an integral part of the Company’s system of HSE control, help to evaluate the current state of the system and devise informed recommendations on ways of improving it.

Occupational Health & Safety

The Company seeks to achieve ongoing improvement in levels of safety at work by consistently reducing rates of accident, injury and work-related illness.

Implementation of measures as part of the corporate HSE and civil defense system led to a major decline in the rate of fatal injuries (by 38%) in 2011.

The number of instances when employees had to be evacuated from their workplace due to risks of illness or due to hospitalization has been substantially reduced over a period of three years.

The Company is implementing a set of measures to raise levels of vehicle transport safety. The rate of road accidents has declined year-on-year as a result (by 24% in 2010 and by 34% in 2011).

Imp ementing the policy of int egrated management of work and environmental safety, of labor protection

Policy and standards of corporate HSE and civil defense at Gazprom Neft are oriented towards reduction of risks and prevention of emergencies. Company subsidiaries have funds and material reserves set aside to ensure rapid response to possible emergencies. Readiness of subsidiaries for such rapid emergency response is tested regularly through drills and training.