Strategic Objectives and Priorities

Production from Hard-to-Recover Reserves, mmt
Total Liquid Hydrocarbons Production, mmt


The increased success rate of onshore exploration drilling in Russia

142   exploration wells
completed and tested onshore Russia with an 84% success rate

Acceleration of new reserves development subject to economic efficiency

>15  mmt
total production at new projects launched in 2016–2018

Optimization of Russian onshore field development (increased share of new horizontal wells)

51 %
share of new horizontal wells with multi-stage hydraulic fracturing
>20  mmt
incremental production from newly commissioned wells
48 %
share of horizontal wells

Commissioning large-scale projects on time and on budget

new fields
have been commissioned: Russloye, Taas-Yuryakh (Phase 2), Tagulskoye, Kuyumbinskoye, and Sorovskoye fields in the East-Salym license area.

Reduced rate of decline in base production

1.1 %
decline in crude oil production at the Samotlor field after several years of annual reduction by 3-5%
12.3  mmt
base production recovered
+9.5% per well
higher effect of the base production recovery activities


Reduced non-productive time

5 %
reduction of non-productive time through higher reliability of equipment operation, timely execution of maintenance, repair and replacements

Reduced well drilling time by 10%

9 %
reduction of horizontal well drilling time to 32 days on average for the Company

Increased rig utilization rate (by 20%–30%)

+3  days (+1%)
increase in the rig utilization rate


Optimized Capex (by 10% for comparable wells, by 10% for linear objects in 2020 - 2022)

6 %
reduction in development well construction costs since the start of the Strategy implementation

Optimized Opex (down by 2–3% per year on a comparable basis)

>3 %
decrease in Opex 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

Gas Production, bcm


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 reached

~ 57 mmcm From 100%.

Developing major gas production projects, including Rospan and Kharampur

Construction of key production facilities of Rospan infrastructure is being completed, the commissioning is scheduled for 2019

In 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



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

19  new facilities
for APG utilization (construction completed). The APG utilization rate achieved 89.7%. Excluding fields at early stages of development

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


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

Production of Motor Fuels Motor fuels complying with the Technical Regulations are Euro- 5 motor gasoline and diesel fuel, as well as jet fuel Complying with the Technical Regulations, mmt


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

cost reduction on a comparable basis
RUB   17.2   bln
cumulative effect of the Operational Efficiency Improvement Program in 2018


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

The Share of non-fuel sales in Gross Margin of Retail Business, %


Improved cost efficiency of sales and access to end consumers (domestic/export sales)

25 %
increase in lubricants shipments to end consumers on direct contracts
growth in fuel sales in the Moscow airport hub

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

increase in high-tech polymer-modified bitumen sales

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


Promoting strong brands and high service standards at filling stations

142 filling stations
were rebranded to Rosneft’s brand (50% of filling stations included into the Rebranding Program were rebranded by the end of 2018)

Expanding non-fuel business (introducing new categories of goods and opening new cafés)

Revenues from non-fuel sales increased by
those from cafés - by  

The product mix policy was optimized, some products under own brand were launched

Improved performance and optimized costs

3 %
reduction of opex

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

23 %
increase in sales under long-term contracts
Tier 1 Process Safety Event Rate (PSER- 1 )
Lost Time Injury Frequency (LTIF)

Relative Greenhouse Gas Emissions (GHG), Upstream, tonnes of CO2 -eq./ thousand boe

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.

63 %
reduction in fugitive methane emissions
93 %
share of reclaimed and reusable water
9 % decrease
of direct greenhouse gas emissions in Downstream

Greenhouse Gas Emissions Indicator The indicator reflects the greenhouse gas emissions (direct and indirect) volume / production volume ratio for all companies in 2017, tonnes of CO2 -eq./ thousand boe , Upstream, tonnes of CO2-eq./ thousand boe

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


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

3 %
decrease in fuel consumption for own operational needs

Automation, including the use of robots

24  oil depots
were equipped with automatic filling systems
46  oil depots
were equipped with automatic in-tank measurement systems
1,000  filling stations
were equipped with modern oil products accounting systems, covering 70% of material flows

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


>240 RUB bln
investments over 5 years
~1 mln young plants
were planted by Group Subsidiaries under the forest conservation activities
10 filling stations
selling compressed natural gas was constructed in 2018


4.4 mmtoe
energy consumption reduction by 2022
8 mmtof СО2 -equivalent
prevention of greenhouse gas emissions until 2022
170 filling stations
selling compressed natural gas will be constructed by the end of the project
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