Strategic Objectives and Priorities
100% LIQUID HYDROCARBONS RESERVE REPLACEMENT RATIO AND ORGANIC GROWTH
The increased success rate of onshore exploration drilling in Russia
Acceleration of new reserves development subject to economic efficiency
Optimization of Russian onshore field development (increased share of new horizontal wells)
Commissioning large-scale projects on time and on budget
Reduced rate of decline in base production
MORE EFFICIENT SERVICE
Reduced non-productive time
Reduced well drilling time by 10%
Increased rig utilization rate (by 20%–30%)
IMPROVED PERFORMANCE
Optimized Capex (by 10% for comparable wells, by 10% for linear objects in 2020 - 2022)
Optimized Opex (down by 2–3% per year on a comparable basis)
Bringing technological partners into capital-intensive high-risk projects
BP: joint implementation of the project for development of the Kharampursky and Festivalny license areas
Intensification of production at the Samotlor field: higher flooding efficiency due to nanoparticles utilization
Expansion of Yermak Neftegaz Project in the Sredvelensky and Olekmensky license areas
Equinor: exploration of the Domanic deposit reserves in the Samara Region, development of the North Komsomolskoye field
COMMISSIONING PROJECTS ON TIME AND ON BUDGET
Producing over 100 bcm
The strategic Zohr field offshore Egypt is being developed ahead of schedule. Less than a year after the launch, the field daily gas production capacity reachedDeveloping major gas production projects, including Rospan and Kharampur
Construction of key production facilities of Rospan infrastructure is being completed, the commissioning is scheduled for 2019In Q2 2018, the Company, in partnership with BP, began an active phase of development of the Kharampursky and Festivalny license areas in the Yamal-Nenets Autonomous Area with total recoverable reserves of about
INCREASING TECHNOLOGICAL EDGE
Developing Turonian deposits
Drilling and testing of new wells to determine the optimal design and completion for the Kharampur field wells
Increasing APG utilization rate, including through the development of captive power generation and petrochemicals
Developing LPG and NGL production
The project for construction of the Maysky gas processing complex in Western Siberia is underway, the project design documentation developed
IN The LONG TERM
Monetization of gas reserves in Eastern Siberia and the Far East
Rosneft and Beijing Enterprises Group are currently developing the Verkhnechkosnkoye oil, gas, and condensate field in the Irkutsk Region; the Company signed an indicative agreement on the basic conditions of gas supply to China
SUBSTANTIAL PROFITABILITY GROWTH
Completing the refinery development projects in Russia to substantially increase profitability
- The refinery development projects in Russia continued
- The major part of equipment was purchased, construction and installation operations are underway
- Debottlenecking projects at the Company’s refineries continued
Improved performance and optimized opex
LONG-TERM DEVELOPMENT OPTIONS
Constructing modern complexes for converting fuel oil into light products in Russia
A preliminary feasibility study was completed for projects of oil residuals processing at two Company’s oil refineries in Russia
Expanding on the fast-growing Asian markets
A project for maximizing the added value on the catalytic cracking unit and petrochemicals production has been initiated at the Vadinar refinery (India)
Constructing major petrochemical projects in three clusters in Russia (subject to project financing availability)
Activities continued to monetize the Company’s feedstock supplies and to involve partners in the joint implementation of petrochemical projects
COMMERCE AND LOGISTICS
Improved cost efficiency of sales and access to end consumers (domestic/export sales)
Expanding and diversifying sales channels (jet fuel, marine fuel, and lubricants)
Manufacturing of bitumen products was organized at third-party facilities with the use of additional volumes of vacuum residues produced at the Company’s plants
Adjusting the product mix to market trends by marketing new products (bitumen, marine fuels)
The Company increased bitumen production and sales according to new GOST.
The Komsomolsk Refinery launched the production of DMF III marine distillate fuel with new quality characteristics
RETAIL
Promoting strong brands and high service standards at filling stations
Expanding non-fuel business (introducing new categories of goods and opening new cafés)
Revenues from non-fuel sales increased byThe product mix policy was optimized, some products under own brand were launched
Improved performance and optimized costs
Developing the customer service package at filling stations (loyalty program and branded fuel)
- The loyalty program membership continued to grow, above 10 million people were enlisted during the implementation period
- The Company brought into the market new fuel types with improved characteristics: Pulsar 100, AI-95 Euro-6, and ACTIVE fuels
- 451 filling stations in 13 regions of Russia were transitioned to Pulsar fuel brand.
Expanding small-scale wholesale through differentiated sales channels
Rosneft’s strategic goal is to become a global leader in terms of safe operation, protection of health and safety of employees and local residents in regions of its operation, and minimization of its environmental footprint.
By greenhouse gas emission rates (GHG), the Company demonstrates results comparable to the leading global oil and gas companies.
HSE Strategy Focus Areas:
- Leadership and Safety Culture
- Skills
- Safety Management System
- Risk and Integrity Management
- Control System
- Reporting and Performance Assessment
Digitalization and Technology Priority
Upstream
Digital field, remote drilling and production control centers, IIoT, Big Data
- Launch of a corporate data processing center with the GE Predix industrial internet platform, an IRMA integrated digital field-twin and GeoPAK digital space for geological and physical data processing (together with General Electric)
- Testing artificial intelligence in the development of fields and planning of well interventions, the use of machine learning technology to optimize the operation of the producing asset in real time, as well as the unique technology of autonomous monitoring of production facilities using drones and machine vision
- Testing of the computer vision technology to monitor HSE compliance during drilling
- The first in the Russian oil and gas industry Drilling Geological Support Center used for drilling ~8 thousand horizontal wells and horizontal sidetracks
- Production start-up of RN-GRID, the corporate hydraulic fracturing simulation module
- Field testing of the ice monitoring system for offshore drilling
Enhanced in-house technology capabilities, cable-free seismic systems, advanced multi-stage hydraulic fracturing (MSHF) techniques, the establishment of a tech park to test technologies
- Rosneft together with ВР and WesternGeco is developing a unique system of seismic data recording unrivalled in the world
- Pilot works for extended horizontal well drilling with more hydraulic fracturing stages (>8) were continued
- A technology of horizontal well drilling with the use of a combined string was rolled out
Oil refining and petrochemicals
Digital Plant, IIoT, Global asset performance management system to extend functional operation times between refinery facility repairs, automation 2.0, including the use of robots
- The vibration-based diagnostics and predictive analytics systems and combined health indicators of highly critical equipment
- Implementation of a patterned solution of the integrated management system for equipment maintenance and repair based on Meridium automated workstation
- Deployment of advanced refinery process control systems.
- Start-up of the following pilot projects:
- using infrared cameras to monitor refinery equipment
- using robot-based means to clean oil tanks
- integrating the personnel monitoring systems using wearable devices and tags
- Implementation of the projects aimed at creation of common operator rooms, GE Predix-based cloud system for collecting, storing and processing information
Improved accounting systems to reduce losses and fuel consumption for own operational needs
- Implementation of the Energy Efficiency Monitoring System
- A project to monitor the perimeter of the refinery and the leakages of petroleum products with the use of drones
Retail sales
Digital Filling Station and Digital Supply Chain programs
- A virtual fuel card for B2B segment was launched into commercial service in the Moscow Region.
- A pilot project was implemented to launch a virtual card under the loyalty program
Improved accounting systems to reduce losses
Automation, including the use of robots
Sustainable Development Priority
Rosneft has approved the strategic principles and public position related to a contribution to the implementation of 17 UN Sustainable Development Goals.
Among them, the Company has selected five strategic priorities for its own operations.
Preserving the environment for future generations is an integral part of Rosneft’s corporate culture and business principles. The Company is aimed at the delivery of superior performance in minimizing the environmental impact and bolstering the eco-friendliness of production.
Applying advanced drilling waste disposal methods
Reducing gas dissipation during gas lift production
Developing technologies for the processing of oil-contaminated wastes with a high content of natural radionuclides
Having a special-purpose ecological institute in place
Implementing programs that facilitate:
- reduction of pollutant emissions
- biological diversity conservation
- energy saving
- increase of reclaimed and reusable water volume