Environment

Going green in operations

Conservation of environment is a strong priority for Naftogaz of Ukraine and its subsidiaries. The Company is focused on mitigating the adverse impact on the environment and environmental risks in the course of its own production operations. Naftogaz's unified environmental policy is aimed at enabling effective environmental management of enterprises, implementation of leading environmental standards and application of best practices. Using our natural resources with care, including water and land, bringing down our waste generation, constant reduction of air emissions and water discharges, preserving biodiversity, and cutting down our energy consumption - these are the areas of our continuous improvement.

Upstream

Naftogaz has been implementing the latest approaches to well construction and hydrocarbon production. The fleet of drilling rigs, geophysical and mining equipment has been significantly upgraded. All field development projects have passed an environmental impact assessment procedure.

The process of developing a waste management program is underway as special attention is paid to this area. At present, a large part of the company's production facilities, in particular, drilling rigs located in environmentally vulnerable areas, use pitless drilling technology. It enables reduction in the use of land resources, mitigates the adverse environmental impact in the course of field development. Our scientists from UkrNDIgas are researching into prospects of using the dry residue of drill cuttings in other industrial areas as a secondary resource - for example, as construction materials for backfilling industrial roads, technical land reclamation at drilling sites, or re-layering of solid waste at landfills.

The Group companies use modern wastewater treatment technology. In line with the technological projects, concomitant fossil waters extracted along with hydrocarbons are returned to underground horizons through absorption wells. This method significantly mitigates the impact on surface water bodies, ground waters, partially restores the natural conditions of subsoil areas leased for hydrocarbon production.

Modernization

Naftogaz Group companies, including JSC Ukrgasvydobuvannya, JSC Ukrtransgaz, and Gas Distribution Networks of Ukraine LLC, are upgrading their technical capacity to detect and measure methane leaks. This includes the replacement and modernization of equipment and infrastructure, facility inspections by mobile laboratories using LDAR (Leak Detection and Repair) technology, and the procurement of advanced equipment for the detection and elimination of methane emissions.

The Group is also introducing snubbing to perform well workovers without depressurizing the well, helping reduce emissions and boost efficiency.