| Business segment |
2015 results | Short-term goals | Long-term strategic goals |
|---|---|---|---|
| Upstream | |||
| Exploration and development of resource base | Rosneft continued efficient reserves replacement in 2015. Based on the 2015 results, АВС1 reserves replacement amounted to 429 mmtoe, including an increase in reserves via exploration (oil and gas condensate) — 146 mmt, gas — 159 bcm. Reserves replacement ratio reached 168%. The result of onshore exploration in the Russian Federation was the discovery of seven fields and 117 new deposits including the projects developed with partners. | Priority – exploration program execution to support efficient production. Implementation of license obligations and improvement of quality and volumes of reserves available for the delivery of the Company’s strategic projects. | Targeting to 100 % reserves replacement ratio. |
| Onshore production in the Russian Federation (brownfields, development of greenfields non-conventional reserves) | In 2015 over 254 mmtoe of hydrocarbons were produced (38 % of oil production in Russia). Rosneft maintains its status as the world’s largest public oil and gas company. The Company launched the Labaganskoye field. Rosneft completed large-scale optimization of the current systems in order to improve the efficiency of field development in West Siberia by shifting from conventional directional drilling to drilling of horizontal wells with multi-stage fracturing (MSF GW). Hard-to-Recover reserves production in West Siberian fields (for details see sec. 3, Operating results, p. 54). | Maintained leadership in terms of Upstream unit OPEX and CAPEX. Implementation of operations for maintaining production at brownfields. Launch of Suzun, Tagul, YTM, Russkoye, Naulskoye, East Messoyakha projects, securing supplies under long-term contracts. Start of commercial production of oil at Suzun and East Messoyakha field. Start of commercial production in the Yurubcheno-Tokhomskoye and Kuyumbinskoye fields. Cluster projects are planned to be joined by common infrastructure which is the Kuyumba-Taishet oil pipeline under construction. Development of projects related to non-conventional reserves to explore their potential. | Production and output of hydrocarbons in Russia at 300 mmtoe by 2020. |
| Offshore | In 2015 the third oil well NC-3 under Northern Chaivo project (9,570 m wellbore depth) was put into operation ahead of schedule. | Focus on high priority projects involving seismic and exploration drilling. Determination of requirements for equipment and technologies for project implementation. Work scoping in relation to onshore support of the Company’s offshore projects. | |
| International projects | In 2015 Rosneft produced 2.4 mmtoe of hydrocarbons outside Russia. | Efficient implementation of current projects aimed at optimizing the current asset portfolio taking into account their investment potential. | |
| Gas business | |||
| Gas business | In 2015 gas production amounted to 62.5 bcm +10 % versus 2014 driven by: increase in natural gas production by JSC Rospan International and growth of associated petroleum gas volumes produced in the Northern Chaivo field by JSC RN-Shelf Far East; intensification of gas production in the Tarasovskoye field by RN-Purneftegaz LLC and an increase in the transportation volumes of refined gas to the unified gas supply system of the Vankor field of JSC Vankroneft; Gas supplies under 2014 long-term contracts to RUSAL, EuroSibEnergo, GAZ Group, and EuroChem were launched in full. | Consistent development of projects aimed at ensuring declared growth of gas production. Production increase driven by the assets and projects in the Yamalo-Nenets Autonomous District such as Rospan, Sibneftegaz, development of the Kynsko-Chaselsky license area, and gas deposits in the Kharampur field. Increasing the efficiency of gas and liquid fractions monetization among the rest by developing NGL and LPG conversion to more premium products. | Gas production is to reach 100 bcm by 2020. Achievement of APG utilization rate of 95 %. The Company’s share in the domestic gas market is >20 %. |
| Downstream | |||
| Refining and Petrochemicals | The transition to the production of gasoline and diesel fuels of Euro-5 Class was completed for the domestic market. Catalytic reformers and Reformer L-35/11-1000 were fully rebuilt (1st Stage) at Syzran and Kuibyshev Refineries, respectively. The MTBE construction was completed at Angarskaya Petrochemicals Company. | Catalytic cracking and MTBE units launch at Kuibyshev Refinery; Alkylation unit start-up at Angarskaya Petrochemicals Company; Catalysts regeneration project completion at Novokuibyshev catalyst plant; Construction of combined hydrocracking unit with integrated hydrotreating of diesel fuel at Tuapse refinery; Completion of the 1st construction stage of hydroprocessing complex at Novokuibyshev plant. | The production volumes of the motor fuels and jet fuel compliant with the Technical Regulation in the Russian Federation total 55 mmt. |
| Commerce and Logistics | The volume of high margin oil supplies to the east increased by 18.5 % YOY in 2015. Angarskaya Petrochemicals Company launched the production of Revolux hydraulic premium oils for commercial fleet. | A loyalty program was implemented at gas stations. Construction of refueling facilities in Gelendzhik port. Launch of the cooperation program with car repair stations to develop motor oil sales. Diversification of oil and oil product sales channels, including destinations in the east. | The annual sales per gas station in Russia average 5.5 thousand tons. |
| In-house services | |||
| In-house oil services | In 2015, Rosneft acquired Trican Well Service LLC rendering hydraulic fracturing and coil tubing services. This acquisition was instrumental in setting up an in-house hydraulic fracturing service covering 20% of own needs in 2015. Own demands for drilling services were satisfied by more than 56 % from the total Company onshore drilling in 2015. (More details are available in 3.5 section). | Higher performance of in-house services. Better equipment of drilling services and higher mobility. Restructuring of the in-house oil services business to improve field development efficiency. | Formation of a high-tech oil services business with the industry-highest financial and operating performance. |
Furthermore, in accordance with the requirements outlined in Directives of the Russian Government No. 203p-P13 of April 16, 2015, there are short- and mid-term plans to achieve a 3 % OPEX reduction year-on-year in the reporting period for all key businesses in comparable conditions.