Strategy

Progress against strategic objectives

100% liquid hydrocarbon reserve replacement ratio and organic growth

Target

Increase the success rate of onshore exploration drilling in Russia

2020 result

Exploration leadership
19
new fieldsIncluding 17 onshore and 2 offshore fields
208 new deposits
2 btoe
hydrocarbon reserves discovered in 2020

Target

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

2020 result

15.2 mmt
production increase due to new well start-ups
68%
share of horizontal wells
1.1 thousand
new horizontal wells drilled using multi-stage hydraulic fracturing techniques

Target

Fast-track the development of new reserves based on viability

2020 result

23.7mmt
production at key projects

5%
an increase in production at key projects

Target

Commission large-scale projects on time and on budget

2020 result

2
greenfields came on stream – the Erginsky licence area and the Severo-Danilovskoye field

Target

A stronger impact of base production recovery measures

2020 result

10.8 mmt
recovered base production volume
6.5%
increase in base production per well

Target

A stronger impact of base production recovery measures

2020 result

10.8 mmt
recovered base production volume
6.5%
increase in base production per well
More efficient service

Target

Decrease non-productive time

2020 result

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

Target

Hydraulic fracturing fleets expanded to 19 units

2020 result

21
hydraulic fracturing fleets

Target

Reduce well drilling time by 5% on a comparable basis

2020 result

13%
reduction of directional drilling time

15.6%
reduction of horizontal drilling time

Target

Ensure a high share of in-house services

2020 result

59%
share of in-house services in the Company’s total drilling metreage


Improved performance

Target

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

2020 result

14.8%
reduction of production well construction costs on a comparable basis since the strategy launch

Target

Engage in partnerships for capital intensive and high risk projects

2020 result

  • Equinor: a deal to jointly develop East Siberian fields

Target

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

2020 result

2.8 USD/barrel
Maintaining leadership in upstream unit OPEX

Due to production restrictions set by the OPEC+ deal and the sale of production assets, some quantitative strategic production targets became outdated.
Commissioning projects on time and on budget

Target

Implement major gas production projects, including Rospan and Kharampur

2020 result

  • Rospan: construction of the first start-up complex completed (launch in Q1 2021)
  • Kharampur:
    • Construction and installation over 40% complete
    • Fist stage of connecting to Gazprom pipelines completed
In the future

Target

Monetise gas reserves within Eastern Siberia and the Far East

2020 result

Efforts are ongoing to provide access to local gas transportation infrastructure and find sales markets

Increasing technological edge

Target

Increase APG utilisation, including through the development of captive power generation and petrochemicals

2020 result

> 98%
APG utilisation at Samotlorneftegaz and Vankorneftegaz

21
new APG utilisation facilities

Target

Develop Turonian deposits

2020 result

Design and survey commenced to ensure the full-scale development of the Turonian deposit

Target

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

2020 result

A positive opinion of the Main Department of State Expert Evaluation for all construction stages of the Maisky gas processing complex obtained Procurement documents drafted

Substantial profitability growth

Target

Complete ongoing refinery development projects in Russia to substantially increase profitability

2020 result

Refinery development projects in Russia continued Most projects are in the active stage: the bulk of equipment has been purchased, construction and installation are in progress

Target

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

2020 result

RUB 22.6 bln
effect from operational efficiency programmes in oil refining and petrochemicals

2.2%
decrease in opex

Commerce and logistics

Target

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

2020 result

14%
increase in the sales of motor oils for passenger cars thanks to stronger retail sales

Target

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

2020 result

  • Aircraft fuelling with jet fuel started at 5 airports of Russia, Europe and Asia
  • Marine fuel sales started at the St Petersburg International Mercantile Exchange

Target

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

2020 result

  • 110% – Polymer modified bitumen sales growthPolymer modified PMB and PG.
  • 0.6 mmt of the new residual marine low sulphur (RMLS 40) fuel used in bunkering
Retail

Target

Promote strong brands and service excellence at filling stations

2020 result

9%
growth in sales of petroleum products through the retail channel since 2017

Rosneft is the No.1 most recognised brandBased on 2020 marketing research.

Target

Expand non-fuel business (introduce new categories of goods)

2020 result

600+
filling stations fitted with equipment for making hot dogs, sandwiches, and hot beverages

  • Expansion of non-fuel services at filling stations through the installation of post lockers and carwash robotics

Target

Improve performance and optimise costs

2020 result

2.5%
optimisation of expenses on a comparable basis

Target

Develop customer proposition at filling stations (programme and use of fuel cards)

2020 result

15.5 mln people
engaged through loyalty programme

1.7 mln holders
of virtual loyalty cards

1 mln
people hold fuel cards. Virtual fuel card service up and running