Download Report (PDF; 3.90 Mb) - Lukoil

SUSTAINABILITY REPORTthe Company's productive capacity continues to grow (including oil andgas production; launching production at new deposits; increased volumesof refining and petrochemical output; greater sales; and expansionof the Company through acquisition of oil and gas enterprises andcompanies).More effective use of raw materialsThe quality of the end product depends on the degree of refining.The refineries of the Company are already well ahead of average figuresin that respect, even though there is still potential for growth.The use of casinghead gas is already much higher than the industryaverage. Moreover, the LUKOIL Group Environmental SafetyProgramme for 2004–2008 sets a target of bringing the use of casingheadgas to 87%.Rational use of energyThe Company conducts energy audits to find ways to save fuel andenergy resources. OAO LUKOIL has devised its own regulatory andmethodological energy audit base suitable for its range of operations.Examination of technological units based on measurements taken andon an analysis of energy balances offers an opportunity for discoveringwasteful use of fuel and energy and for identifying its causes. This systemis also useful for selecting possible solutions that will increaseenergy efficiency.The Company has introduced a system of apportioning fuel and energyresources and implements comprehensive measures to save energy.In the case of refining this is accomplished though heat utilizationat the refining units. Lower energy consumption in oil production isachieved through intensified production at producing wells and throughtighter controls on the flood pattern used for maintaining reservoirpressure. An additional effect of these controls is that the water consumptionfor maintaining reservoir pressure is reduced (see the section"Optimization of Water Consumption."). The Company is introducinghighly effective technology such as an automated system using commercialenergy accounting and equipment with dedicated software forapportioning the use of fuel and energy.78