1. Antipinsky Oil Refinery is Granted the Right to Use Subsoil Resources of Three Fields in Orenburg Region

Antipinsky Oil Refinery is Granted the Right to Use Subsoil Resources of Three Fields in Orenburg Region

18 March 2015

On March 18, the Antipinsky Oil Refinery won the tender for the right to use subsoil resources for exploration and production of raw hydrocarbons of Mogutovskoe, part of Vorontsovskoe and part of Gremyachevskoe fields in the Orenburg Region for 20 years.

Having conducted a comprehensive detailed study of the environmental situation in the Buzuluk Pinewood National Park over the period of more than two years, the Antipinsky Oil Refinery fully understands the complexity and social significance of the existing environmental situation in the park.

Currently, there are 164 well sites in the national park, most of which are in a critical condition and due to the loss of sealing need to be re-suspended or abandoned. From the wells being under high pressure, X-trees are cut-off or removed in a most barbaric manner, which considerably decreases the safety of such wells. The existing oil leaks and gas seepages may catch on fire any time soon, which will inevitably lead to material damage to the environment and cause a large-scale manmade disaster. To ensure protection from any possible seats of fire and prevention of environmental disasters, the Antipinsky Oil Refinery, based on its business performance results, has made provisions to allocate considerable financial resources for that purpose. As one of the first steps in that direction, the Antipinsky Oil Refinery will in the near future set up a fire-fighting unit in the national park and engage local population on a remuneration basis.

Participating in the preservation and improvement of the Buzuluk Pinewood National Park environment is a principled civic stance taken by the Antipinsky Oil Refinery management. Antipinsky Oil Refinery is fully committed to minimize the damage resulting from the implementation in the Soviet times of the ill-conceived policy of total drilling that did not take into account the environmental features of the area. Therefore, Antipinsky Oil Refinery undertakes to participate in the social and economic development of the Orenburg region, such participation expressed in monetary terms amounting to over RUB 3 bn, including by increasing tax deductions to the regional budget, and commits to pay special attention to creating new jobs. Further, one of the company’s priority focus areas will be the performance of works to re-abandon the abandoned wells and re-suspend part of the suspended wells and maintain the wells in an environmentally safe condition. Moreover, in order to restore the national park’s ecosystem, all earlier damaged and contaminated lands will undergo remediation, whereupon they will be handed over to the government.

The company management’s commitment to investing substantial funds to address environmentally material issues is confirmed by the commissioning of five-step water treatment facilities at the Antipinsky Oil Refinery in 2014, the construction of which cost USD 200 million. They are unique in that the water coming from the river for the refinery’s process needs is dirtier than the water returned to the river by the refinery after it has passed through all five purification stages. It is noteworthy that there are very few oil refineries in Russia, but Antipinsky Oil Refinery is one of them, where grass and flowers can grow next to refining units, and the foul odor hanging over most Russian oil refineries is not there.

The environmental protection efforts undertaken by the Antipinsky Oil Refinery do not go unnoticed. In 2014, the refinery was given “Water of Russia” First National Water Industry Award in the “The Best Project Aimed At Reducing Water Pollution” category. In February 2015,  at the International Business Forum “Russia – Serbia 2015: Prospects of Trade, Economic and Humanitarian Cooperation” held in Belgrade (Serbia), the Antipinsky Oil Refinery CJSC was awarded a diploma of the "Global Eco Brand" main international environmental Award in the “Leader in Social and Environmentally Responsible Business” category.

The above facts clearly demonstrate the Antipinsky Oil Refinery management’s concern for its employees engaged in the production and the environment.

As of today, the Antipinsky Oil Refinery expresses its readiness to proceed with the implementation of activities in the areas that require special attention, namely:

  • reforestation activities;
  • projects to provide the facilities and facilitate research activities at the National Park;
  • improvement of living conditions of Buzuluk Pinewood National Park employees;
  • maintaining fire-chemical stations and availability of necessary equipment for fire-chemical stations, as well as providing routine repairs of fire fighting facilities (fire lookout towers,  fire-chemical stations);
  • creating and maintaining recreational facilitiesworkplace arrangement, retraining and training of local population, and implementation of any other activities proposed by FGU Buzuluk Pinewood National Part and the Ministry of Natural Resources, Ecology and Property Relations of the Orenburg Region.

In keeping with its commitment to strictly comply with the environmental law provision, the Antipinsky Oil Refinery warrants that it will use the most advanced scientific solutions in the course of developing the fields to minimize the presence of process equipment and infrastructure facilities in the National Park (booster pump stations, oil treatment and metering units,  tank farms and branch pipelines connected to main pipelines) by placing them outside the Buzuluk Pinewood and using directional and horizontal drilling methods. All the wells will be located on 10 sites with due account for the prevailing wind pattern.

Fully realizing the burden of responsibility falling on the Antipinsky Oil Refinery, the company’s management undertakes to use its best efforts to prevent the environmental disaster brewing in the Buzuluk Pinewood National Park to preserve national environmental heritage for future generations.

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