6.6. ENERGY EFFICIENCY AND ENERGY SAVING

CONSUMPTION OF FUEL AND ENERGY RESOURCES

3% of Russia POWER BALANCE

FUEL AND ENERGY CONSUMPTION BY ROSNEFT

23.2 mmt

SCOPE OF FUEL AND ENERCY CONSUMPTION IN 2015

Rosneft is the third biggest consumer of energy resources in the Russian Federation and holds more than 3 % of the energy balance of the country.

The total volume of consumption of fuel and energy resources for the Company1 in 2015 amounted to 23,215 tons per thousand tce.

The distribution of energy consumption in 2015 year by production activities is shown in Table 1. Also in 2015, in the framework of updating the Energy Saving Program, the Energy Saving Program of Rosneft for 2016-20202 was developed and approved by the Board of Directors, under which the total savings of fuel and energy resources for 5 years amount to 5,586 thousand tce or RUB 43,825 mln.

Activity Consumption of fuel and energy resources In tons per thousand tce Share,%
Electricity, thousand kWh Heat, thousand Gcal Fuel, thousand tons
Oil and gas production 34,679,126 2,370 1,668 14,646 63.1%
Oil refining 4,078,976 13,270 3,048 7,555 32.5%
Petrochemicals and gas processing 296,123 2,689 226 819 3.5%
Marketing and distribution 288,685 45 106 0.5%
Service 172,207 195 88 0.4%
TOTAL 39,515,117 18,569 4,941 23,215 100

IMPLEMENTATION OF ENERGY EFFICIENCY AND ENERGY SAVING POLICIES

In 2013, the Company management made a decision to implement an Energy Management Systems to its production activities in accordance with GOST R ISO 50001:2012. The implementation of this decision will enable the use of international best practices to reduce energy consumption and move to a qualitatively new level of raising energy efficiency and energy saving at the Company.

In 2015, a model organizational structure of units by energy efficiency and energy saving with completed staffing was developed and approved for oil and gas production and refining companies of the Group. KPIs were set for the leaders of work groups on energy saving, which have an effect on the annual bonus.

In 2014, the Energy Efficiency Commission updated the Energy Efficiency Roadmap of Rosneft for 2015-2017. All the activities are implemented in due time.

Activity 2015 savings In tons per thousand tce Share,%
Electricity, thousand kWh Heat, thousand Gcal Fuel, thousand tons
Oil and gas production 1,910,424 9 24 672.9 66.4
Oil refining 61,190 574 163 329.5 32.5
Petrochemicals and gas processing 6,379 18 0.3 5.3 0.5
Marketing and distribution 12,671 4 0.3 5.4 0.5
Service 2003 1 0.4 1.3 0.1
TOTAL 1,992,665 606 188 1,014 100

Electric power development

In 2015, as part of the energy supply projects for prospective loads and improvement of the reliability of power supply to oil and gas production and refining companies of the Group, construction and commissioning were completed of the following significant energy facilities:

CJSC Vankorneft: Two-chain 220 kV HVL, SS Mangazeya – connection of 110 kV HVL (in 220 kW size) of GTPP - OPS-1 (21 km).

The first stage of technical connection of the Vankor power district to the Tyumen energy system with 60 MW maximum (allowed) capacity.

LLC RN-Yuganskneftegaz: 110/35/6 kV SS (pad 86) 2 x 40 MVA with 110 kW HVL.

OJSC Tomskneft VNK: Upgrade of 110/35/6 kW Krapivinskaya SS. Replacement of 2 x 25 MVA transformers with 2 x 40 MVA.

JSC Orenburgneft: GPP of Pokrovskaya complex gas treatment facility 2 x 4.3 MW.

OOO RN Uvatneftegaz:

1.  110/35/6 kV South Petyegskaya SS 2 x16 MVA with 110 kW HVL;

2.  110/6 kV Bush 10 Ust-Tegussky field 2 x 6.3 MVA with 110 kW HVL;

3.  110/6 kV Bush 11 Ust-Tegussky field 2 x 6.3 MVA with 110 kW HVL;

4.  Rostekhnadzor permit was issued for commissioning of gas turbine power plant of 60 MW GTPP of Ust-Tegussky field (phase 2) and 24 MW GTPP of Tyamkinsky field.

LLC RN-Severnaya Neft:

1.  5 MW PP at Labagansky field (phase 1) based on DGU;

2.  3 MW PP at Intermediate OPS based on DGU;

3.  2 х1,6 MW Gas and diesel Unit at PJSC Vostsibneftegaz.

PJSC Vostsibneftegaz: 2 х1,6 MW Gas and diesel Unit.

LLC RN-Tuapse Refinery: Rostekhnadzor permit was issued for commissioning of the first startup complex of GTP-HPP of the Tuapse Refinery with 141 MW capacity (dated 13.11.2015 No. 304-15).

JSC Syzran Refinery: 110/6 kV SS main step-down substation 2 (reconstruction of 110 kW indoor switchgear, replacement of 2 x 40 MVA transformers, construction of new 6 kW indoor switchgear with load transfer). Rostekhnadzor permit was issued for commissioning of electrical equipment (dated October 10, 2015 No. C-27).

JSC Ryazan NPK: 35/6 kW SS MSDS 3 (replacement of 2x16 MVA power transformers).

Rostekhnadzor permit was issued for commissioning of MSDS 3 (dated June 6, 2015 No. 5-27-A-537/1-2015).

By the end of 2015, the generating capacity of own energy sources of the Company amounted to 1,603 MW and increased by 41 MW (2.5 % increase of installed electric capacity), and transformer capacity in 110 kW voltage class increased by 167 MVA.

The Company uses international experience
in energy costs saving