Lukoil # 10 (November 2017)

On October 26,2017 PJSC LUKOIL President Vagit Yu. Alekperov has presented the ExecutiveDirector of LUKOILMid-East Limited (BasraBranch, Iraq)MaratA. Salikhovwith the 1-st Degree Medal of Merit for achievements in theFuel andEnergyComplexdevelopment. The past 7 years of Mr. Salikhovís career were Well-deserved honour devoted toWestQurna-2Project in Iraq - first as theChief Engineer and thenas theGeneral Director of the Operating Company. The greatest production increase in Iraq over the past 10 years has been achieved during his years of managingWest Qurna-2 Project. A LUKOIL project manager in Mexico shares his experiences working with local communities. MORE THAN OIL WELLS: THE KEY TO SUCCESS LIES IN SOCIAL RESPONSIBILITY T h LUKOILís history inMexico dates back to the summer of 2015, when the company entered a service agreement with local state-owned PEMEX on the Amatitlán Block. This onshore project is located near the town of Poza Rica, in the State of Veracruz. I have often been asked about my impressions of the area.Whenmany of us hear ďVeracruzĒ or ďMexico,Ē we tend to think of year-round resort beaches and warm ocean waters. Not to dissuade any visitors, but Poza Rica is not exactly that. Poza Rica Ė theOil Capital of Veracruz Humans have inhabited Veracruz for at least a millennium, and remnants of that rich history abound here. Thereís a large and highly visible cross section of the ancient remains of early societies overlapping with the modern day. SERGEY BUDLOV 6HUJH\ %XGORY KROGV 0DVWHU?V GHJUHH LQ 3HWUROHXP (QJLQHHULQJ IURP +HUULRW :DWW 8QLYHUVLW\ DQG 7RPVN 3RO\WHFKQLF 8QLYHUVLW\ DQG 0DVWHU?V GHJUHH LQ 0DQDJHPHQW IURP 7RPVN 6WDWH 8QLYHUVLW\ 7KURXJK WKH FRXUVH RI KLV FDUHHU KH KHOG PXOWLSOH WHFKQLFDO DQG PDUNHWLQJ SRVLWLRQV LQ 6HUYLFH &RPSDQLHV DQG 2SHUDWRUV &XUUHQWO\ 6HUJH\ LV EDVHG LQ +RXVWRQ KROGLQJ WKH SRVLWLRQ RI $PDWLWODQ 3URMHFW 0DQDJHU 6HUJHL %XGORY 3R]D 5LFD 0H[LFR It forms a tapestry of social and cultural blending that is hard to describe in words. Nonetheless Poza Rica is, above all, the oil capital of this huge region, and you feel that the moment you enter the town. Almost every local business is somehow related to oilfields and the relevant service companies they attract. Even today, during the downturn in oil prices, every hotel is full of oilfield employees recovering after a long day and getting up early the next morning to venture back into the field. It sometimes seems that every single conversation over lunch at local cafeterias and restaurants eventually focuses on oil. Local communities are inevitably impacted by this, andmany become professionally involved with the oil companies. Itís difficult to describe the feeling of dedication and professionalism among people on the ground here. Supporting the Community Inevitably oilís impact is not without controversy. You can get a very different impression while visiting some of the indigenous communities whose land inhabits the Amatitlán contractual area. Many live in small and impoverished villages inhabited by a few families that are almost entirely economically dependent on growing and selling oranges to local vendors. Unde r s t a nd i ng a nd f i nd i ng a common language with members of these communities is critical to the success of the entire project. One must recognize the inherent and obvious threat that oilfield development can pose to their way of life, social security and future. At Amat it lán, it is our job to demonstrate the potential benefits of the projectís success to local communities. Land rents and oil royalties have the potential to fund education programs for local youth, provide jobs and diversify the economy. At everymeeting with community leaders, we discuss ways that the ongoing economic development could more directly improve their lives. Like at all LUKOIL projects worldwide, we remain completely dedicated to implementing the projectís social development program, which involves renovating schools, equipping hospitals and providing direct help to households. Amatitlánís success is not just about production goals or numbers on a chart, but making sure that our work is appreciated by those who have lived here for generations. Itís about respect for local culture and history. /8.2,/ ,10(;,&2 /XPH[ +ROGLQJ % 9 D MRLQW YHQWXUH EHWZHHQ D /8.2,/ VXEVLGLDU\ DQG 0DUDN DFTXLUHG 3HWUROHUD GH $PDWLWO£Q 6 $ 3 , LQ -XO\ 7KH FRPSDQ\ HQWHUHG LQWR D VHUYLFH DJUHHPHQW ZLWK 3HPH[ ([SORUDFLµQ \ 3URGXFFLµQ WR GHYHORS WKH VTXDUH NLORPHWHU DFUH $PDWLWO£Q EORFN ORFDWHG NLORPHWHUV IURP WKH FLW\ RI 3R]D 5LFD 9HUDFUX] 0H[LFR 7KH K\GURFDUERQV H[WUDFWHG DW $PDWLWO£Q EHORQJ WR 3(0(; DQG FUXGH LV VKLSSHG E\ WUXFN WR WKH 6ROHGDG FROOHFWLRQ V\VWHP ORFDWHG NLORPHWHUV IURP $PDWLWO£Q %ORFN 6HUYLFHV IRU WKH SURGXFWLRQ RI K\GURFDUERQV DUH WKXV SURYLGHG RQ D FRVW UHFRYHU\ EDVLV ,Q -DQXDU\ /XPH[ +ROGLQJ HQWHUHG LQWR D GHILQLWLYH DJUHHPHQW ZLWK 5HQDLVVDQFH 2LO &RUSRUDWLRQ IRU WKH MRLQW GHYHORSPHQW RI WKH $PDWLWO£Q EORFN 5 Society

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