RUEN
2019 Interactive Sustainability Report

Protection of water resources and rational water use

Reasonable and careful preservation of an ecosystem with clean water, access to water resources is one of the main factors of sustainable development. The company uses water resources rationally and implements measures to reduce the impact on water resources, protect them and replenish them in all regions of its presence, including modernizing infrastructure and introducing the best available technologies. The company aims to increase the share of recycled and consistently used water, environmentally safe handling of produced produced water, introduction of modern wastewater treatment systems.

The access to water bodies used in the interests of the Company is carried out in accordance with the legislation of the Russian Federation, as well as the resolutions of local regulatory authorities. The Company does not violate the rights to water and the access to it, including that for the local population. The territories of the Company's production activities do not belong to regions with a shortage of water resources.

 According to laboratory studies, the water quality in the main rivers of the Company's operations territory is maintained at a stable level, the content of chloride ions, oil and petroleum products in the dissolved and emulsified state does not exceed the established standards of the pollutants MPC.

 PJSC TATNEFT organized and held an annual contest "For maintaining the aesthetic condition of equipped springs and improving the water quality" for the 25th time in 2019.

 More than 500 springs have been cleared, repaired and architecturally arranged by the Company’s divisions within the territory of the Company's activities.

 Water resources management in the TATNEFT Group is carried out in compliance with the requirements of the Water Code of the Russian Federation and the federal law "On Subsurface Resources" on the basis of contracts for the right to use water bodies, decisions on the provision of water bodies for utilization, licenses for the right to use subsurface resources for the purpose of the underground water extraction.

 The Company arranged re-equipment of mechanical wastewater treatment unit of OOO Togliattikauchuk in 2019 to ensure the standard level of wastewater treatment and to completely exclude the discharge of polluted wastewater into the environment; the first system’s biological treatment unit was put into operation at the TANECO Complex; technological standards for the content of pollutants in wastewater are observed; the territories of the sites and the place of wastewater discharge are maintained in proper sanitary and ecological condition.

 During 2019, a significant amount of work was carried out to improve the reliability of pipelines for various purposes.

 Anti-corrosion pipes are used to ensure the reliable operation of oilfield pipelines.

 More than 500 stationary oil-collecting facilities and booms are maintained in working condition in proper order to prevent contamination of surface watercourses (rivers) and reservoirs with oil.

 In order to protect the land, surface and underground water sources, PJSC TATNEFT has carried out major repairs of more than 93 km of oil pipelines of the oil production and oil treatment systems, more than 80 km of water pipelines of the reservoir pressure maintenance system (RPM) using anti-corrosion design pipes, and performed a diagnostic examination of more than 3,493 km of pipelines.

 The water intake for the TATNEFT Group increased by 29% in 2019.

 The main reasons are:

 * expansion of own production, increase in production volumes;

* commissioning of new installations at the NP and NHZ Complex of JSC TANECO;

• new enterprises joining the TATNEFT Group (OOO Togliattikauchuk, OOO Togliattisintez).

DYNAMICS OF WATER INTAKE FOR OWN NEEDS FOR THE TATNEFT GROUP»,
MILLION M3

The main consumer of water in the TATNEFT Group is the "Exploration and production" business area, which accounts for 50% of the consumed amount. The "Other" section, inter alia, includes OOO "Togliattikauchuk" with a water consumption amount of 19.1 million m3.

Most of the Group's water is comes from suppliers ("Other Sources"), the largest of which is OOO "UPTZh dlya PPD".

DYNAMICS OF WATER INTAKE FOR OWN NEEDS OF THE TATNEFT GROUP,
MLN M3

DISTRIBUTION OF WATER INTAKE FOR OWN NEEDS BY WATER SOURCES IN 2019

The main sources of water are the Kuibyshev storage reservoir, the Volga, Kama and Stepnoy Zai rivers. The water intake is carried out in accordance with water resources management agreements.

The TATNEFT Group does not have a significant impact of the water intake on natural water sources. The volume of water intake from surface and underground sources does not exceed the permitted volume.

Realizing the importance of preserving clean water ecosystems, TATNEFT Group is implementing a project to improve the health of the Stepnoy Zai River, which is a tributary of the Kama River. The purpose pursued  by the project is to identify the main sources of the surface water pollution, attract the attention of economic entities, regulatory and supervisory authorities, plan and initiate the implementation of environmental measures to achieve the water quality that meets the requirements of sanitary standards.

In 2019, there were funds allocated within the framework of the project for the construction of waste treatment facilities and for the construction of sewer systems in the locality of Kaleikino, for the development of design and estimate documentation for the reconstruction of treatment facilities in Bugulma, for the implementation of design works of a unified water disposal network in the village of Santekhnika with subsequent tie-in connection to the pressure sewer collector of treatment facilities in Leninogorsk.

DYNAMICS OF WATER USE FOR VARIOUS NEEDS, MLN M3

68.4% of the water consumed is used for industrial needs, 7% for household and drinking water.

More than 24% of the water is used to maintain reservoir pressure in the "Exploration and Production" business area. Technical water supplied by OOO "UPTZh dlya PPD" and wastewater from other suppliers is used for this purpose.

There was an increase in the volume of water consumed for the purposes of the RPM during the time period under review.

VOLUME OF WATER FOR THE PURPOSES OF MAINTAINING RESERVOIR PRESSURE IN THE BUSINESS DIRECTION "EXPLORATION AND PRODUCTION" OF THE TATNEFT GROUP, MLN M3

An important indicator for the characteristics of the rational water management is the costs in the systems of recycled and re-used water supply. This indicator for the TATNEFT Group amounted to 1,056. 8 million m3 in 2019.

VOLUME OF RECYCLED AND REUSED WATER FOR THE TATNEFT GROUP»,
MILLION M3

The largest volumes of recycled water supply are in JSC "TANECO", OOO "Togliattikauchuk", PJSC "Nizhnekamskshina", OOO "Nizhnekamsk SSC Tyre Factory", OOO "Nizhnekamsk CHPP", PJSC TATNEFT named after V. D. Shashin.

TOTAL VOLUME OF RECYCLED AND RE-SUPPLIED WATER IN THE TATNEFT GROUP'S BUSINESS AREAS IN 2019

DYNAMICS OF WATER DISPOSAL TO SURFACE WATER BODIES FOR THE TATNEFT GROUP, MLN M3

In 2019, there was a decrease in water disposal volumes by 4% in the TATNEFT Group. 

The following measures are implemented to ensure the standard level of wastewater treatment and to completely exclude the discharge of polluted wastewater into the environment:

•  re-equipment of the mechanical wastewater treatment unit was implemented in OOO " Togliattikauchuk” in 2019;

* the first system biological treatment unit was put into operation at JSC "TANECO";

* technological standards for the content of pollutants in wastewater are complied with;

* territory areas of the sites and the place of wastewater discharge they are kept in a proper sanitary and ecological condition.

a significant amount of work was carried out during 2019 to improve the reliability of pipelines for various purposes. Sour service pipes are used to ensure the reliable operation of oilfield pipelines. There were 1,799 km of sour service pipes produced at the Bugulma Mechanical Plant in 2019.

The TATNEFT Group enterprises implement a number of measures aimed at preventing contamination of surface and underground waters in the course of the Company’s activities:

•   the protection of internal surface of process tanks (RVS and GO) is provided with application of anti-corrosion coatings at the oil collection and oil treatment facilities of oil and gas production divisions.

*  dozens of reagent brands were tested and adapted to protect oilfield equipment and pipelines from internal corrosion. There are only highly effective and technologically advanced corrosion inhibitors used currently based on the unification results carried out in recent years. There were more than 5,283 thousand tonnes of highly effective corrosion inhibitors used in 2019.

*   electrochemical protection is an effective means of protection against corrosion damage. In 2019, the total number of PJSC TATNEFT’s wells with cathodic protection of casing strings increased by 64 wells. Cathodic protection was provided for 369.76 km of pipelines. Electrochemical protection against internal and external (ground) corrosion was provided for 32 tanks (RVS) and horizontal settling tanks (GO) was performed.

* the introduction of highly reliable packers and tubing for sour service was continued.

* In 2019, they continued to introduce advanced technologies of the RPM system aimed at reducing the energy consumption and increasing the production efficiency at PJSC TATNEFT. 2019 witnessed the continued implementation of the "Concept for the development of the RPM system for 2016-2020", the work was continued to protect the downhole equipment of injection wells from the effects of high pressure and corrosion failure, as well as to comprehensively optimize the RPM processes.

There is a local network of monitoring points for water bodies operated at the TATNEFT Group in to monitor the state of surface and underground waters in the area of the Company’s activities.

The industrial environmental control of the water bodies’ condition is carried out by the chemical and analytical laboratories of the structural divisions of PJSC TATNEFT and subsidiaries of the TATNEFT Group. Water analysis is carried out for the parameters characterizing the influence of the production processes, and in particular crude oil production, oil processing: chloride-ion, sulfate-ion, total hardness, bicarbonates, hydrogen index, calcium, anion-active surfactants, oil and petroleum products in the dissolved and emulsified state.

 According to the laboratory studies results the water quality in the main rivers of the territory of the Company’s activity was stable in 2019. The content of chloride ions, oil and petroleum products in the dissolved and emulsified state in 2019, in the main rivers and in the vast majority of springs did not exceed the established standards of the harmful substances MPC. Currently, there is a process of their steady concentration reduction in the groundwater taking place.

 Unique treatment facilities of the TANECO Complex»

 The TANECO complex was the first in Russia to build and operate unique treatment facilities using membrane treatment technologies designed for receiving and fine cleaning of all generated wastewater: industrial, domestic, and storm water, providing for possible  return of up to 90% of the treated wastewater to production for reuse. The efficiency of the wastewater treatment based on the marker substances application is up to 99.9% and allows reducing the content of pollutants in the wastewater to the required maximum permissible concentrations for fisheries significance reservoirs.

80%OF TREATED WASTE WATER RETURNS TO PRODUCTION