ENERGY FOR PEOPLE - JSC Gazprom Neft

JSC GAZPROM NEFTANNUAL REPORT2009CONTAMINATED LANDREMEDIATION, HASOURCE:COMPANYDATA1801701761601501401301841482008 2009cancels the need to set up additionalsludge pits, drilling waste is processedat the pad, which means that sludgedoes not need to be transportedelsewhere. The consolidated footingbraces pollutants and lowers therisk of them migrating elsewhere toa minimum. This solid drilling mix couldbe later used as a construction coatingfor firming up roads and laying down thebody of the pad.LAND CONTAMINATION CONTROLAND REMEDIATIONThe Company takes measures todecontaminate land and removeunauthorized waste storage spots. In2009, 219 ha of contaminated land wereremediated. To reduce the number ofareas with disturbed land the Companyplans to continue implementing pitlessdrilling.The Company’s enterprises useadvanced chemical biological agentsfor land remediation (like Fare Zyme),designed to destroy oil. They are basedon mineral, rather than biologicalcomponents, feeding the naturalflorula and facilitating land restoration.Biological remediation also involvesplanting area-specific grass andperennials.UTILIZATION OF ASSOCIATED GASIn the production sector a lot of workis being done on increasing the levelof associated gas utilization. The rateof associated gas (hereinafter – AG)utilization across the Company’s majorproduction enterprises remains at themedium level – 48.1% of recovered gaswas used in 2009 (in the tables belowyou can see the volumes of receivedand utilized AG in 2006-2009).Increasing the AG utilization rate isa priority set by the state, and in orderto contribute to reaching this goal, in2008 the Company adopted a MediumtermInvestment program for 2008-2010on AG utilization and more efficient use(hereinafter MTIP). Based on the MTIPGazprom Neft has now developed anupdated Gas program. Actual financingof the MTIP projects in 2009 was 105%of what was planned. Implementationof the Gas program will allow theCompany to bring up the AG utilizationrate to 95% by 2012 at Gazprom Neftproduction assets.Automated AG control system will makemanagement in this area more efficient.Such system was designed in 2009.It will allow to quickly receive preciseinformation on production and usageof AG.117