Environmental management

As with any other industrial activity, oil and gas operations affect the environment. TNK-BP understands its social responsibility for potential adverse effects of its operations and makes significant efforts to minimize the environmental impact as a whole and each of its components. The minimization methods include upgrading of production facilities to reduce emissions and discharges, pipeline replacement and inhibition to prevent oil spills, remediation of mechanically disturbed and oil-contaminated lands, associated petroleum gas utilization and many other environmental protection activities. As a result, our environmental performance improves every year, and we are consistent in eliminating our legacy contaminations.

The company has achieved the following results over the years of its existence:

· The level of associated petroleum gas utilization by TNK-BP reached 84.4% in 2009, which is nine percentage points above the level of 2004. As a result, overall atmospheric emissions of pollutants declined by 15% across the company over the same period. Considering the macroeconomic environment, TNK-BP plans, in the medium term, to gradually continue its work aimed to increase the level of associated petroleum gas utilization and bring it to 95% in all company assets. .

· As oil and gas production increased and new fields were commissioned,TNK-BP has managed, between 2004 and 2009, to reduce water consumption levelby 15% . This has been achieved thanks to our actions aimed at reducing in-process losses, upgrading treatment facilities and optimizing water consumption as a whole. Meanwhile, the volume of circulated and reused water supply has increased by 32% across the company since 2004. In particular, our oil and gas producing subsidiaries have been gradually reducing freshwater consumption and have instead been using bottom water, thus maintaining reservoir pressure.

· Developing new assets creates production waste. Despite this, our recently introduced waste handling activities have, since 2004, reduced annual waste accumulation by 25%

· The number of spills has declined by 69% across the company since 2005 as a result of implementing the TNK-BP Integrity Management Strategy. The company reconstructed 3,546 km of pipelines in 2004-09 with the key requirement for reconstruction being obligatory inner and outer anti-corrosion protection.

· Our program to remediate the environmental legacy (i.e. the lands that were contaminated due to economic activity of previous license owners) resulted in the full remediation of ca. 2,500 hectares of land and their handover to government commissions.

· Company investments in environmental protection activities increased by a factor of 7.6, from 375 mln rubles in 2004 to 2.8 bln rubles in 2009. These investments include spending on design, construction and repair of environmental protection facilities (e.g. waste landfills, effluent treatment works), on funding atmospheric air conservation programs (including flaring system reconstruction, arrangement or development of infrastructure to gather and utilize associated petroleum gas), on neutralizing drilling waste of closed-loop well construction and on dismantlштп decommissioned equipment (idle pipelines, old tanks, well abandonment, etc.).

Fig. 1—3 show the impacts of TNK-BP operations (by disciplines) on the environmental components.Fig. 1. Overall atmospheric emission of pollutants

TNK-BP total atmospheric emissions of pollutants, '000 tons


Key TNK-BP discipline contribution to
atmospheric emissions


APG utilization trend, %


Fig. 2. Water consumption, water discharge and reused water volume

TNK-BP water consumption, million m3


Water consumption by key TNK-BP disciplines


Water discharge, million m3


TNK-BP water discharge by key disciplines


Reused water volume, '000 m3


Key TNK-BP discipline contribution to water reuse


The concept of reused water implies the total of volumes of recirculated water supply and successive repeated water use.

Fig. 3. Production and consumption waste handling

Annual waste generation, '000 tons


TNK-BP waste generation by key disciplines


Annual waste utilization, '000 tons


TNK-BP waste utilization by key disciplines


Fig. 4. Environmental protection investments

Environmental protection investments, million rubles