Spotlight on Russia

MOL has been conducting exploration and production activities in Russia for more than a decade. For the time being we are interested in four project companies: three of them can be found in Western-Siberia and one in the Volga-Ural Region. As a result of our exploration activities, several hydrocarbon discoveries were made and the project companies are now effectively exploiting the newly-found hydrocarbon reserves. We are paying special attention to modernising, extending and raising the technical specifications of existing facilities.

Environmental protection

Our Russian subsidiaries manage with special importance the environmental impacts associated with the production and exploration activities in the areas they operate. In tackling this challenge, during the preparation of drilling sites, roads and surface facilities, they take good care of the special flora and fauna which exist in remote and unpopulated areas.

Ongoing activities include:

• Ensuring that all development projects are preceded by an environmental impact assessment for future reference. Having all subsidiaries continuously monitor the environment to minimize any negative impacts which could come from MOL’s operations.
• Taking care of associated gas utilisation issues as a first priority in accordance with Russian legislation. In case of the Zapadno-Malobalik (ZMB) project, the gas turbine power station was already set up; for MOL’s other Russian production projects the implementation of associated gas-based power generation is in progress. We are reducing air-pollution through utilisation of associated gas, instead of crude or diesel oil, for power generation and heating purposes.
• Use of newly-installed environmentally-friendly, gas-engine driven power generators in Matyushkinskaya Vertikal reduces environmental pollution and decreases the amount of flared gas.
• The construction of the closed crude oil gathering system in the Baitugan field was completed in order to avoid further discharge of associated gas into the atmosphere. Implementation of associated gas utilization for heating and power generation purposes is in progress according to Russian environmental regulations.
• Construction of a 40 km long oil transporting pipeline at Matyushkinskaya Vertikal has been commenced. Now road transportation by tankers can be replaced and CO₂ emissions can be significantly reduced.
• Waste management plans were drawn up at all Russian project companies, in accordance with MOL Group guidelines.
• Construction of a hazardous waste storage facility at Matyushkinskaya Vertikal to collect drill cuttings, drilling mud and other harmful materials was finished. The waste from this storage facility is forwarded to a central disposal plant.
• It was ensured that contracts were only signed with qualified suppliers and contractors based on MOL Group requirements.

Supporting local communities

All of our project companies focus their support activities on the development of economic, cultural and social life of the local communities.

MOL Western Siberia:

• We have built up a valuable relationship with the Nefteyugansk local government by supporting social and cultural projects.
• We sponsored the Khanty-Mansi District Fire Brigade and Catastrophe-response Office and the local administration of the city of Kut-Yakh.

Matyushkinskaya Vertikal:

• In accordance with an agreement with the local government, we provided financial support for developing infrastructure, the economy and social institutions of the region.
• We participated in organizing a competition for young geologists.
• We contributed to operating a Summer Camp for poverty-stricken children.

BaiTex:

• We provided support for educational institutions in the city of Buguruslan and the purchase of devices for a children’s rehabilitation centre.
• We sponsored the organisation of local school celebrations and sports events and the operations of sport clubs.
• We made a contribution towards the re-construction of local hospital and for organizing the provincial anniversary celebrations.