Performance Results

Development of International Projects in Promising Oil and Gas Regions

Rosneft is a global energy company with a diversified portfolio of international assets. The Company’s mid-term strategic objectives in international expansion include managing its current asset portfolio effectively. Over the longer term, the Company seeks to expand its international presence in the world’s most promising oil and gas regions, grow its resource base, and improve overall performance.

Our main goal of building a sustainable and profitable international presence is the creation of additional value for our shareholders while acquiring new knowledge and expertise for more effective project development both in Russia and abroad. Operating in regions such as South America, North and East Africa, the Middle East, and the Asia-Pacific Region, the Company actively develops local partnerships that are aimed at mutually beneficial implementation of development projects.

The Zohr Project in Egypt
The Zohr Project in Egypt

In October 2017, Rosneft signed on as a full partner with a 30% stake in the project.

The Zohr field was discovered by Eni in 2015. It covers an area of 231 sq km, with sea depths ranging from 1.2 to 1.7 km and a gas deposit located at a depth of 3.4 to 4 km. Zohr is one the biggest offshore fields in the Mediterranean Sea. Gas production at the field started in December 2017.

In 2019, Zohr commissioned four new production wells, three gas treatment unit trains and the third pipeline for gas transportation from the field to the gas treatment facilities, enabling it to reach its production target of 76 mmcm per day in August 2019, five months ahead of the Development Plan.

Actual production in 2019 (100% of the project) totalled 23.4 bcm of gas and 0.2 mmt of gas condensate (Rosneft’s share: 4.1 bcm of gas and 0.04 mmt of gas condensate).

The entire volume of gas production goes to Egypt’s national gas system.

In December 2019, the partners deemed practicable to carry out exploration on the Shorouk Block in 2020–2021 by drilling an exploration well with a view to enhancing the project’s resource potential.

Actual production in 2019 (100% of the project) totalled
23.4 bcm of gas
0.2 mmt of gas condensate
Brazil
Brazil

Through its subsidiary, Rosneft Brasil E&P Ltda, Rosneft engages in a prospecting and exploration project at licence areas in the Solimões River Basin (State of Amazonas), holding a 100% stake and operatorship in these licences. Its efforts resulted in a number of gas discoveries. In 2019, the Company drilled the fourth prospecting well which helped detail the geological structure and the oil and gas bearing potential of the basin. Rosneft is currently considering monetisation options for the newly discovered gas reserves.

Iraq
Iraq

Bashneft International B.V. is the project operator and owns a 100% stake in the hydrocarbon exploration and production agreement for Block 12.

In December 2019, the second exploration well, Salman-2, was completed and tested by the Company at Block 12 in Iraq’s south, which confirmed the initial estimate of oil reserves at the Salman field. In late 2019, the Company submitted to the Iraqi side an application for potential commercial discovery and a further exploration programme for the next two years.

Iraq (Kurdistan)
Iraq (Kurdistan)

Since 2017, Rosneft has been running a hydrocarbon exploration and production project in Iraqi Kurdistan. The Company is the project operator, holding an 80% stake in five production sharing agreements (PSA).

In February 2019, oil production was piloted at the Bejil field.

In 2019, the Company started 3D seismic surveys, getting ready for exploration drilling.

Offshore Projects in Mozambique
Offshore Projects in Mozambique

Rosneft participates in the consortium for exploration of three offshore blocks (А5-В, Z5-C, Z5-D) in Mozambique which were obtained following the fifth licensing round. The consortium includes Rosneft – 20%, ExxonMobil (operator) – 40%, Mozambique’s state-owned ENH – 20%, Qatar Petroleum – 10%, Eni – 10%.

In 2019, the consortium continued to process and interpret seismic data getting ready to drill prospecting wells.

Myanmar
Myanmar

Bashneft International B.V. is the project operator at Block EP-4, holding a 90% stake in the PSA.

Its efforts helped identify a number of targets for prospecting drilling. The first well is scheduled for 2020.

Offshore Projects in Vietnam
Offshore Projects in Vietnam

Rosneft participates in exploration projects and a joint gas and condensate production project at Block 06.1 in the Socialist Republic of Vietnam (Rosneft Vietnam B.V. as the project operator holds 35%, ONGC – 45%, PVN – 20%). The project is implemented in line with the PSA. Block 06.1 contains three gas condensate fields, specifically Lan Tai, Lan Do, and PLD (Wild Orchid). The fields are located 370 km offshore in the Nam Con Son Basin.

Actual production in 2019 (100% of the project) totalled 4.16 bcm of gas and 0.04 mmt of gas condensate (Rosneft’s share: 0.78 bcm of gas and 0.01 mmt of gas condensate).

In 2013, the Company signed a PSA for the development of Block 05.3/11. The project is currently at the exploration stage. The licence area is located in the region with confirmed oil and gas bearing potential and extensive infrastructure, and borders on the currently developed fields of Block 06.1.

Rosneft also participates in the offshore Nam Con Son pipeline project (Rosneft Vietnam Pipelines B.V. – 32.67%, Perenco – 16.33%, PVN – 51%), which involves the transportation of gas and gas condensate produced at offshore blocks in the Nam Con Son Basin to the onshore processing facility and then to gas turbine power plants for electricity generation.

The pipeline has a capacity of 7.7 bcm per year, carrying ca. 7 bcm of gas in 2019, including the gas produced from Block 06.1 and other operators in the Nam Con Son Basin. Its operational efficiency is 100%.

On 22 June 2019, Rosneft Vietnam B.V., one of the Group Subsidiaries operating in Vietnam, marked 17 years of safe offshore operations with no lost-time injuries, an important milestone in its activity.

Actual production in 2019 (100% of the project) totalled
4.16 bcm of gas
0.04 mmt of gas condensate