Strategy of the Company

Progress against strategic objectives and priorities


fact in 2019

100% liquid hydrocarbons reserve replacement ratio and organic growth

Increase the success rate of onshore exploration drilling in Russia

88 %
record-high success rate of onshore exploration drilling in Russia
exploration wells completed and tested in Russia

Commission large-scale projects on time and on budget

1 field
started commercial operation Preparation for launching large projects in Western and Eastern Siberia is in progress

Optimise Russian onshore field development (increase the share of new horizontal wells)

19.6 mmt
production increase due to new well start-ups
57 %
share of horizontal wells (up 9%)

Fast-track the development of new reserves based on viability

22.5 mmt
liquid hydrocarbons production at new large projects

Reduce declines in basic production>

5 x
slowdown of the Samotlor production decline rateVs. production decline rates in 2008–2017
12 mmt
recovered basic production volume
+9.8 %
increase in the impact of basic production recovery measures (per well)

More efficient service

Decrease non-productive time to 5%

<5 %
maintaining a low proportion of the non-productive time

Increase technical availability and speed up fleet upgrade

new hi-tech hydraulic fracturing fleets since the strategy launch

Ensure a high share of in-house drilling services used by the Company

56 %
share of in-house services in the Company’s total drilling metreage

Improved performance

Engage in partnerships for capital intensive and high risk projects

  • decision to start the first stage of the Severo-Komsomolskoye full-scale development approved
  • siliceous-carbonate reservoirs in Domanic deposits tested
  • continuation of the Yermak Neftegaz project
  • intensified production at theSamotlor field

Optimise capex (by 10 % for similar well design, by 10 % for linear objects)

13.8 %
reduction of production well construction costs on a comparable basis since the strategy launch

Optimise opex (by 2–3% per year on a comparable basis)

2.2 %
reduction of opex on a comparable basis

Commissioning projects on time and on budget

Produce over 100 bcm

76 mmcm per day
the strategic Zohr field offshore Egupt reached the planned daily production rate ahead of schedule

Implement major gas production projects, including Rospan and Kharampur

construction of key facilities in the final phase
construction and installation of major production facilities in progress

In the future

Monetise gas reserves of Eastern Siberia and the Far East, including through petrochemicals development

Rosneft and Beijing Enterprises Group are jointly exploring the Verkhnechonskoye oil and gas condensate field in the Irkutsk Region and studying the opportunities for gas monetisation

Increasing technological edge

Develop Turonian deposits

15 bcm per year
production potential of the Kharampurskoye field's Turonian deposit, pilot operation started

Increase APG utilisation, e.g. through the development of captive power generation and petrochemicals

new APG utilisation facilities. The APG utilisation rate reached 89.3 %Not including fields in early development stages
APG utilisation rate at the Verkhnechonskoye field

Develop liquid petroleum gas (LPG) and natural gas liquids (NGL) production

Construction of the Maysky gas processing complex in Western Siberia – positive opinions of the state environmental expert evaluation authority and the Main Department of State Expert Evaluation obtained

Substantial profitability growth

Complete ongoing refinery development projects in Russia to substantially increase profitability>

  • Refinery development projects in Russia continued
  • The Novokuibyshevsk Refinery piloted a kerosene preparation unit as part of the off-site facilities for hydrocracking plant.

Increase efficiency and optimise opex (by 2–3% per year on a comparable basis)

~3 %
decrease in opex
RUB 20 bln
cumulative net effect of the operational efficiency improvement programme

Improve the cost efficiency of sales and increase access to end consumers (domestic/export sales)

5 %
growth in ‘wing-tip’ sales of jet fuel for civil aviation
40 %
increase in lubricant shipments to end users (direct contracts)

Expand and diversify distribution channels (jet fuel, marine fuels, and lubricants)

4 x
growth of jet fuel sales at foreign airports
Refuelling of Russian airlines’ aircraft started in Spain, the UAE and China

Adjust the product mix to market trends by marketing new products (bitumen, marine fuels)

Sales of low-sulphur residual marine fuel complying with IMO 2020 standard started
+64 %
increase in the output of improved road bitumenAs per the new GOST 33133-201 standard.

Improve performance and optimise costs

3 %
decrease in unit opex

Promote strong brands and service excellence at filling stations

6 %
growth in sales of petroleum products through the retail channel
102 filling stations
migrated to the Rosneft brand

Develop customer proposition at filling stations (loyalty programme and branded fuel)

13.6 mln people
engaged through loyalty programme
+113 filling stations
selling the Pulsar 95 branded gasoline

Expand non-fuel business (introduce new categories of goods and open new convenience stores)

  • Sales of private labels expanding
  • 8% growth in the number of filling stations with convenience stores