Sustainable development

Digital Transformation

Focus on Digital Transformation and Technology

Digital transformation and innovations are at the forefront of Rosneft’s efforts to develop information technology. To engage with the domestic market, embrace new technology and explore innovation opportunities in IT, the Company held Rosneft Pitch Day, an online exhibition of domestic IT solutions inviting Russian manufactures to showcase their IT achievements that can be of benefit to Rosneft’s core operations. Following the event, the Company selected a number of technologies to be piloted at Rosneft such as those powered by IoT, big data, AI, wireless connectivity and blockchain.

Rosneft places a strong focus on enhancing cooperation in the digital industry and building its own digital ecosystem. The Company works with leading national universities, including Gubkin Russian State University of Oil and Gas, Lomonosov Moscow State University, MIPT, National Research University Higher School of Economics and others, specialised agencies, vendors and developers of IT solutions in Russia. To support import substitution initiatives in relation to IT hardware and software, the Company partners with Sberbank and Rostelecom.

Rosneft’s endeavours to meet its business development targets and create an industry standard in IT are guided by the Company’s IT strategy that defines information technology as a tool for optimising and transforming business processes. Some examples of the relevant projects are listed below:

  • integrated modelling of a production asset that combines models of the formation, well, production infrastructure, accumulation and storage system;
  • integrated planning and management in production and drilling;
  • prediction of equipment failures;
  • computer vision.

In 2020, the Company analysed 26 digital scenarios and launched 14 digital projects.

Digital Projects

There are 35 digital projects currently underway as part of the Comprehensive Plan to Deliver the Rosneft–2022 Strategy. These cover areas such as Digital Field, Digital Plant, Digital Supply Chain and Digital Filling Station.

The external challenges that come from a consistent policy of sanctions in relation to providing technology that is being pursued by a number of governments coupled with the COVID-19 pandemic, changes in the environment and regulatory framework, the emergence of new digital technologies and the need for higher returns from IT solutions force the Company to adapt its IT strategy.

To this end, the Company seeks to leverage information technology to improve the effectiveness of its business, focusing on the following:

  • deploying digital technologies across its operations to build a single digital environment and migrating to big data-powered products; creating self-sufficient IT solutions and using proprietary developments; improving the corporate data processing centre and creating a network of regional data processing centres, including protected standby capacities in different geographies; implementing a set of measures to enhance remote working at the Company, upgrading the IT infrastructure, mobile ecosystem security system, etc.;
  • creating a corporate store of basic digital apps to support the implementation of digital scenarios across the Company’s processes;
  • developing solutions to digitalise management and production processes across the Company using AI technology.
Digital Projects

Achievements in 2020 under business digitalisation programmes

Upstream. Digital Field

Digital Field
  • 100% of Russian Group Subsidiaries involved in production that are part of the Exploration and Production business were given access to geological drilling support that relies on data visualisation powered by advanced analytics.
  • RN-GRID, a unique hydraulic fracturing simulator, is in charge of 100% engineering calculation required to design and perform hydraulic fracturing.
  • Rosneft’s own mathematical modelling and schedule optimisation technology helped the Company save up to 52 days per year within the production well building and workover cycles. After pilot testing had confirmed there was a significant effect, the Company started developing a single corporate solution for all its drilling facilities.
  • Digital twins were created for the fields of six Group Subsidiaries in Exploration and Production. Digital twins are 3D models based on advanced data visualisation that help accelerate and improve management’s decision-making, reduce the risk of, and the time of response to, incidents and emergencies.

Oil Refining. Digital Plant

Digital Plant
  • Projects to introduce advanced process control systems are being rolled out at six Group Subsidiaries.
  • 24 engineering models have been developed and updated for process units at refineries in Oil Refining.
  • Piloting a solution template to automate repair, maintenance, and equipment control was approved for two Group Subsidiaries.
  • Functional and engineering requirements and the architectural concept were approved to create a standard solution for optimised blending of heavy petroleum products at five refineries.

Petrochemicals

Petrochemicals
  • Software robots were developed to manage inventories (seven robots) and procurement procedures (two robots) as part of a pilot project to automate business processes relating to inventories and procurement at Novokuibyshevsk Petrochemical Company.

Commerce and Logistics

Commerce and Logistics
  • The Company is developing the Digital Core for Commerce and Logistics initiative, which is expected to reduce the residue to 5.5% of the technological limits in 2021 and 8.3% of the technological limits in 2022 and onwards.

Regional Sales. Digital Filling Station

Digital Filling Station
  • 1,500 of the Company’s filling stations allow payment from inside the car.
  • 23 self-service terminals have been installed at 12 filling stations of the Company.
  • 50 filling complexes saw the roll-out of contactless payment solutions for products bought in the café and store and delivered to the customer’s car.
  • Five suppliers of complementary goods for filling stations took part in testing of blockchain-based electronic workflow.

Cyber security

Information security is a key factor underlying the Company’s sustainable operation amid digitalisation and improvement of business management, control and industrial automation systems.

Since 2018, the Company has been implementing its information security strategy aimed to ensure secure digital development of the Company.

In 2020, Rosneft's Board of Directors approved the revised Information Security Policy, which addresses the new challenges. The policy is a core document that sets the framework for protecting business processes and interests from risks and threats to information security and ensuring compliance with laws and local regulations in information security that apply in Russia and the jurisdictions of the Company’s operation.

To streamline the implementation of the information security strategy, the Company has built an extensive portfolio of projects aimed at planned upgrading and testing of innovative information security solutions. The Company places a strong focus on promoting the corporate culture and digital hygiene and improving the staff's awareness of, and skills in, information security.

Rosneft continues its efforts to comply with provisions of Russian laws on critical information infrastructure protection. Group Subsidiaries conduct regular compliance monitoring. On top of that, a centralised procedure has been established to interact with the National Computer Incident Response and Coordination Centre. Scheduled and ad hoc cyber drills are arranged on a regular basis to ensure the staff are prepared to counter cyber attacks.

In 2020, amid the unfavourable epidemiological situation experienced both in Russia and globally, the Company paid particular attention to safe and sustainable operation of its IT infrastructure as employees were moved to remote working.

Cyber security