2025 Strategy in Action
Exploration and Production
Proved Reserves
Production
The Company relies on state-of-the-art technologies and a balanced investment policy to effectively replace its base of proved reserves. This is key to further growth despite the volatile oil prices, changing tax environment and the deteriorating structure of remaining commercial reserves across its conventional oil production clusters. The Company’s 2025 Strategy is on target.
The Company strengthens its leadership in hydrocarbon production both in Russia and globally focusing on high-impact technologies and rational development of the Russian Arctic resources.
Refining
Refining in Russia
Sales
Sustainable development
Health, safety and environment
The Company’s key HSE improvement programmes include:
- equipment safety reviews and alignment of production facility characteristics with workplace safety regulations;
- upgrade of accident prevention systems;
- emergency prevention and response plans;
- control of compliance with HSE safety rules;
- maintenance of safe working conditions and workplaces that fully meet statutory and corporate safety requirements;
- provision of personal protective equipment;
- occupational health initiatives;
- comprehensive HSE training;
- analysis and implementation of cuttingedge safety technologies.
- See section: Health, safety and environment
- Use of neural networks to enhance occupational safety: see section Use of neural networks to enhance health and safety
Energy consumption and efficiency
The Company’s Upstream Division exceeded 2018 targets under its energy efficiency programme by 72%, with energy savings across the division amounting to 462 m kWh (vs the 2018 target of 269 m kWh).
The Downstream Division’s energy savings under its energy saving and energy efficiency programme amounted to 170,400 Gcal of heat, 50,900 tonnes of natural fuel and 9.3 m kWh of electric power.
- See section: Energy consumption and effciency
Talent pool development
Gazprom Neft’s status as one of the country’s leading employers was confirmed by high scores in Russian and international rankings such as Randstad Award, HeadHunter Top Employer 2018, and Universum Top 100 Russia 2018.
- Talent pool development: see section Human resource development
Business ecosystem
Compliance with corporate safety standards is a key criterion in selecting Gazprom Neft’s contractors. Ensuring conformity with legislative and corporate industrial safety requirements is far from being the only focus area in the Company’s contractor relations policies. At Gazprom Neft, we seek to create an environment that would promote workplace safety and encourage suppliers to build long-term partnerships with the Company.
- Supply chain responsibility: see section Regional policy and development of local communities
Gazprom Neft’s project to set up a centre for developing the Bazhenov formation based on domestically produced advanced equipment and technology now qualifies as nationally important.
- Bazhen Technology Centre: see section Research centres and technoparks
Gazprom Neft partners with leading R&D institutions to develop and productionise import-substituting products on an ongoing basis.
2018 milestones:
- Four import substitution projects funded by the Fund for the Promotion of R&D Start-ups
- Four strategic partnership agreements signed
- Cooperation agreements signed with Lukoil and Tatneft
- Joint working groups with Gazprombank and HMS Group up and running
- See sectionImport substitution
Shareholders and investors
In 2018, the Company achieved record-high financial performance vs industry peers consolidating its leadership by ROACE. Further efficiency improvements will help the Company maintain its positions and meet the 2025 Strategy targets.
2018 results:
- Investor and shareholder relations: see section Share capital
Social investments
This is one of the most successful and popular business initiatives for the development of local communities in Russia. Under the programme, all projects of any size and scale, be it pint-size volunteer campaigns, town celebrations or major international festivals, seek to tackle very specific and intrinsic problems within the Company’s footprint.
2018 results:
Contributing to a higher sustainability of the oil industry
2018 milestones:
- Gazprom Neft actively trades in Urals futures contracts on the SPIMEX Saint-Petersburg International Mercantile Exchange.
- The Company supported the commitments of the Russian Federation under the OPEC+ deal
- Gazprom Neft actively contributed to stabilising prices in the Russian market of petroleum products in 2018
- Focus on cutting-edge technologies helps extend the productive life of mature fields
₽ 800+ +
Environment
2018 milestones
In 2018, we continued to implement the Green Seismic project based on seismic exploration technology preserving forested areas. The traditional approach requires broad forest clearings to allow for the passage of heavy all-terrain vehicles, with 4 m wide receiver lines and 4–5 m wide source lines.
Green seismic survey is carried out using wireless recording equipment, which can be installed with the help of lightweight machinery. This enables us to significantly narrow down clearings or not to create them at all. The Green Seismic method introduced by the Company in 2016 reduced the width of the receiver lines to one metre.
At the end of 2017, Gazprom Neft launched a new stage of the project – Green Seismic 2.0, which aims to narrow the source line width to 1–3 m.
- Land and vegetation protection: see section Mitigating negative environmental impacts
Biodiversity preservation programmes are rolled out across all of the Company’s Russian assets.
- Biodiversity preservation: see section Mitigating negative environmental impacts
- Narwhal research programme: see section Mitigating negative environmental impacts
Creating value for stakeholders
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Conclusions
In 2018, the Company developed a clear vision on how to deliver on the 2025 Strategy across all of its business lines, with some of its targets already met.
Gazprom Neft’s ongoing projects serve its long-term goals:
- upstream projects such as Novy Port, the Tazovskoye and Severo-Samburgskoye fields, oil rims, the Orenburgskoye field, the Prirazlomnoye field, the Messoyakha fields as well as value accretive initiatives based on new technologies, high-tech wells, enhanced oil recovery techniques along with putting on stream unconventional reserves;
- downstream projects focused on refinery upgrades which, if delivered on time, will help increase the refining depth and efficiency, and the catalyst production project;
- sales initiatives aimed at developing a distribution network for highest value-added petroleum products, launching new products into the market, expanding sales capacities, enhancing the network efficiency and mainstreaming digitalisation.