Message from the Chairman of the Board of Directors
Dear shareholders and investors,
2020 saw the Company continue with the implementation of Rosneft–2022, one of the industry’s most comprehensive strategies. Consistent efforts of our management and employees supported business continuity and paved the way for further growth.
In October, the Board resolved to make some changes to the Management Board to help the team better address the pandemic-related challenges and to strengthen the ties with Rosneft’s major regional divisions.
The Company places health and safety among its top priorities. To contain the spread of the coronavirus, Rosneft procured personal protective equipment for employees at all its production facilities, filling stations and offices and introduced strict sanitary and anti-epidemic controls at its shift camps, establishing observation and isolation units and staffing them with medical personnel. Beyond the Arctic Circle, Rosneft introduced telemedicine at its facilities.
In the reporting year, Rosneft’s Board of Directors recommended record high dividends for 2019 – RUB 354.1 blnIncluding dividend payment for the first six months of 2019. – and approved Vostok Oil, a large-scale and very promising project. The investment community highly appreciated the Company’s performance and, as a result, its shares have hit fresh highs in this year of 2021, outperforming the MOEX Russia Index growth rate several fold.
In April 2020, the Board of Directors voted to assign more responsibilities to the Strategic Planning Committee, renaming it the Strategy and Sustainable Development Committee. The Committee assists the Board of Directors in defining strategic goals and growth targets, including ESG goals.
In 2020, the Company continued to introduce innovations and develop its R&D capabilities as part of the Rosneft–2022 Strategy, came up with new methods to produce synthetic oil, researched into minimising carbon footprint, and deployed digital production management platforms for oil refineries and storage facilities. Commissioned by the Company, Russia’s first green tanker Vladimir Monomakh completed its inaugural voyage after successfully passing its sea trials in 2020.
As a key item of its environmental agenda, the Board of Directors reviewed our Carbon Management Plan for the period until 2035. It focuses on preventing GHG emissions, reducing the upstream emissions intensity by 30%, cutting the methane emissions intensity, and achieving zero routine flaring of associated petroleum gas (APG).
In December, the Board of Directors assessed the Company’s performance over the reporting period and approved a business plan giving the go-ahead for the management to continue investments in promising projects.
The results of 2020 are a testament to the correctness of the Company’s focus on business development and implementation of new high-potential projects in strict compliance with the highest environmental and carbon footprint standards.
Chairman of the Board of Directors