Download Report (PDF; 3.90 Mb) - Lukoil

SUSTAINABILITY REPORTGroup. In accordance with the International Labour Organisation guidelinesfor recording and reporting work-related accidents and occupationaldiseases, the Company has introduced internal standards:"Recording and Analyzing Accidents and Occupational Diseases", and"Investigation and Recording of Minor Injuries". The procedures set upfor recording and investigation of accidents fully comply with Russianlaws. Results of these investigations are thoroughly analyzed andemployed in decision-making processes.Reduction of the incidence of accidents and injuriesThe incidence of industrial accidents in the Company is significantlylower than the average for the industry across Russia. During the lasttwo years there were no industrial accidents at LUKOIL Group petrochemicalenterprises. A general reduction of the number of workinjuries is demonstrated both by the number of workplace accidentsand injured employees in the Company as a whole and by specific statistics(see diagrams). Unfortunately, there has been no significantreduction in fatal accidents.An analysis of workplace injuries from 1995 to 2003 identified severalfactors that hinder their reduction. The first and most significant ofthem is the human factor (violation of work discipline; violation ofhealth and safety rules, job instructions, procedures, etc.) The secondfactor is insufficient attention to health and safety from enterprisemanagement. The third factor is superannuated equipment whichexperiences more frequent breakages (especially at pipelines).Special attention should be paid to the selection of contractors. Forexample, an accident fatal to a group of three individuals occurred in2003 during an emergency situation at Kama-Neft which is a subsidiaryof ZAO LUKOIL-Perm. A gas mixture exploded during weldingsetting the oil emulsion on fire. The work was performed with graveviolations of safety rules on an unprepared tank and without authorizingdocuments.The situation calls for better staff training and improvements in safetysupervision. In order to allow systematic training in health and safetyfor the maximum number of employees, the Company createda test site for a distance learning system in 2003. At present trainingcourses on industrial safety management and fire safety and a training86