Formation of corporate culture and ethics

Improvement of the Company’s activity efficiency largely depends not only on the positive dynamics of operational indicators, but also on well-coordinated teamwork, functional interaction and positive communications among employees, both within departments and among structural divisions, as well as on well-coordinated partnership with the external environment. The Company pays significant attention to its corporate ethics. In this regard, 12 principles of corporate interaction have been developed and implemented in 4 areas, 3 principles in each area, reflecting the desired behavioral indicators affecting the positive dynamics of both the teamwork and effective communication, and the increase in the efficiency of the Company’s activities as a whole:

  1. “Company - Employee" — effective interaction in terms of an employee and the Company («initiative and active life position» / «striving for continuous improvement and professional development» / «fair assessment of the activities and staff motivation»)
  2. “Company - External environment” – effective interaction in in terms of the Company and external environment ("outstanding performance for the benefit of the state" / "honesty and openness" / "tolerance and mutual respect")
  3. “Employee - Employee” – effective interaction in terms of employees and among employees (“teamwork” / “constructive discussion of matters” / “business communication”)
  4. “Manager - Employee” – effective interaction between the manager and the employee ("sole responsibility" / "panel discussion and unconditional execution of the decision made" / "opened doors")

To develop and implement the effective interaction principles systematically, the Passport for the Formation and Implementation of Zarubezhneft JSC Corporate Interaction Process improvement project was approved. As part of this project, the following activities have been implemented:

  • The Code of Corporate Conduct has been updated; in particular, the Code now includes effective interaction principles, their detailed description and corrective actions for non-compliance with these principles.
  • An Action Plan of implementation of principles within the Group of Companies was developed. This Action Plan was developed based on five change management functions:
    • involving function;
    • educational function;
    • supportive function;
    • enforcement function;
    • monitoring function.

Specific activities were provided in each function; below there is a list of activities within each function.

  1. Involving – Strategic sessions, team events, video broadcasting and information booklets.
  2. Educational – Seminars, trainings, distance courses, training cases and simulators.
  3. Supportive – Consultations, feedback, general meetings, explanations and orders.
  4. Enforcement – Orders, decrees, procedures.
  5. Monitoring – Estimative and social surveys, monitoring, questioning.

Additional instruments for control and corrective actions were formed.

The corporate competence model of Zarubezhneft JSC has been updated. A new competence called “Efficient Interaction” has been added that presents the desired model of employee’s behavior depending on the particular situation where the employee:

  • is committed to improvements and pursues professional passions continuously;
  • shows creativity and active position in work situations;
  • adheres to the principles of teamwork and constructive dispute;
  • shows tolerance towards the population of the regions and countries of Company’s activities;
  • adheres to the rules of unconditional performance of an assignment on the part of authorities and legal compliance;
  • effectively interacts with partners, counterparties, contractors to maintain the Company’s position to the maximum;

This competency has developed an evaluation survey included in the annual staff assessment.

In forming the control and enforcement instruments, the Regulation on the Corporate Ethics Commission was developed and approved, including influence methods in case of non-compliance with the principles. The composition of the Corporate Ethics Commission, which includes the heads of various fields of concern, was approved.

An electronic box has been created for contacting the Corporate Ethics Commission (Kodeks@nestro.ru).

Currently, the project implementation has been on the go. It will be continued with the implementation of these principles in the Company’s corporate life so that they are not only followed and executed statutorily, but become a good tradition and a helper in achieving common results. This, in turn, will lead to all employees becoming one team of staff with a high cohesion level and commitment to the Company’s common goals and values.

As in previous years, in 2018, the “Best in Profession” competition was again held at the production facilities of Zarubezhneft-Dobycha Kharyaga LLC, in the Komi Republic. The participants from subsidiaries of Zarubezhneft JSC Group of Companies, the winners of competition selection stage at enterprises, showed their knowledge and skills in the theoretical and practical parts of the competition in six nominations:

  1. "Oil and Gas Production Operator",
  2. "Dehydration and Desalting Plant Operator",
  3. "Electric and Gas Welder",
  4. "Maintenance Man",
  5. "Chemistry Lab Technician" (for the first time).

Considering the special significance and importance of the labor protection, industrial safety and environmental protection fields, the best workers in the nominations “Best in the production system” and “Best in the HSE” were additionally selected. Traditionally, foreign workers from the enterprises of the Republic of Srpska, Modriča Motor Oil A.D. and Brod Refinery A.D. and the Socialist Republic of Vietnam, JV “Vietsovpetro” take part in the Competition, instilling internationality to the event. In team contest, employees of Zarubezhneft-Dobycha Kharyaga LLC became the winners for the third time in a row, showing traditionally high training level. The winners were awarded with diplomas, cash prizes and gifts.

Another significant event is the annual review contest “The Best Facility” among the production facilities of Zarubezhneft JSC Group of Companies, claiming the title OF “High Production Culture Facility” in two fields: Treatment, Transportation of Oil, Gas, Water and Oil Production. In the reporting year, an additional field was added to oil refining facilities.

The competition contributes to the development of a responsible attitude to work, increasing efficiency and work quality, improving production discipline, developing corporate production culture, and protecting the environment. In 2018 the “High Production Culture Facility” title was awarded to the following facilities by right: Treatment, Transportation of Oil, Gas, Water – Mobile installation for preliminary water removal unit at the Kirsanovskoye Field of ZARUBEZHNEFT-Dobycha Samara LLC; in the field Oil production - Cluster pad No. 11 of the West-Khosedayu field of LLC “JC “RUSVIETPETRO”.

Zarubezhneft JSC holds the “Best Employee” contest quarterly, which selects employees with the maximum influence on the result of events that took place in the Company in three focus fields: development of technological competencies, increasing organizational efficiency, meeting shareholder’s requirements and expectations.

To develop the corporate culture, unite the teams of the corporate center and subsidiaries, create a favorable working atmosphere, the Company holds social and cultural events: Children's Drawing Contest, family excursions, intellectual tournaments.