Sustainable development

Energy Efficiency and Energy Saving

Fuel and Energy Consumption

Rosneft is a major fuel and energy consumer in Russia. In 2020, the Company’s Information on the most energy-intensive assets operated directly by Rosneft, for 2020. fuel and energy consumption totalled 18.9 million tonnes of coal equivalent (mmtce) Natural units of electricity and heat are converted into tonnes of coal equivalent in accordance with GOST R 51750-2001, and those of fuel – in accordance with Resolution of the Federal State Statistics Service (Rosstat) No. 46. , or RUB 216,946 mln.

For energy consumption and costs by business segment in 2020, see the table below.

Energy consumption and costs by business segment in 2020
Segment Fuel and energy consumption In ktce / RUB mln Share, %
electricity, th. kWh / RUB mln heat, th. Gcal / RUB mln fuel, kt / RUB mln
Oil and gas production 37,750,767 / 133,233 2,752 / 7,125 1,547 / 3,453 7,093 / 143,811 37.4
Oil refining 6,001,792 / 19,863 19,460 / 19,806 4,093 / 15,529 9,786 / 55,198 51.6
Petrochemicals and gas processing 2,308,307 / 6,335 6,799 / 5,604 405 / 1,170 1,843 / 13,109 9.7
Gas production and distribution 340,630 / 1,746 113 / 264 61 / 102 142 / 2,112 0.7
Marketing and distribution 319,479 / 1,674 70 / 86 5 / 32 55 / 1,792 0.3
Services 92,343 / 452 248 / 451 2 / 21 48 / 923 0.4
Total 46,813,318 / 163,303 29,442 / 33,336 6,111 / 20,307 18,967 / 216,946 100

Energy Saving Programme

In 2020, the Company embarked on its 2020–2024 Energy Saving Programme approved by the Board of Directors in March 2020. The Programme promotes a more efficient use of electricity and heat, as well as boiler and furnace fuel across key business lines. For actual fuel and energy savings in 2020, see the table below.

Actual fuel and energy savings in 2020
Segment Savings in 2020 In ktce Share, %
electricity, th. kWh heat, th. Gcal fuel, tce
Oil production 1,356,788 2 957 164.1 41.0
Oil refining 33,649 236 175,129 212.2 54.0
Petrochemicals 3,458 40 9,373 15.3 4.0
Gas distribution 26,931 0 0 3.2 0.8
Marketing and distribution 4,612 0 144 0.7 0.2
In-house services 1,554 1 365 0.7 0.2
Total 1,426,991 279 185,967 396.3 100.0
Energy Saving Programme

Energy Efficiency and Energy Saving Policy

In accordance with its Energy Efficiency and Energy Saving Policy and the Energy Management System: Requirements and Use Guidance Standard, the Company took the following steps in 2020:

  • amended the list of Group Subsidiaries covered by the 2021–2025 Energy Efficiency Programme, adding the following assets: RN-Buzulukskoye Gas Processing Plant, and Saratovnefteprodukt. Given asset combinations and divestments and with no new energy saving initiatives planned for 2021–2025, the Programme covered 82 Group Subsidiaries;
  • drafted regulations on how to use the Electrically-driven Centrifugal Pumps module of the Mechanical Resources information system at Group Subsidiaries in Upstream, which resulted in Rosneft becoming one of the first companies in Russia's oil and gas industry to introduce a production well operating procedure for monitoring the energy efficiency of electrically-driven centrifugal pumps and implementing targeted energy saving initiatives before any equipment failures or well interventions;
  • arranged for corporate training in energy efficiency (five courses). In 2020, 471 employees took training in the dedicated corporate training centre;
  • put into effect Order No. 71 On Drafting and Implementing Targeted Programmes to Introduce an Energy Consumption Monitoring System in Oil Refining, Gas Processing and Petrochemicals dated 3 February 2020 to create an automated instrumental database for fuel and energy resources and develop/deploy in-house software for energy use regulation, planning and reporting;
  • performed an internal assessment of energy management systems at 21 Group Subsidiaries in Exploration and Production, and Oil Refining, Gas Processing and Petrochemicals, with individual roadmaps drafted to address the identified gaps in 2020–2022. Another assessment is scheduled for 2021;
  • had its own energy efficiency and energy saving divisions perform an internal energy efficiency audit of 386 production facilities and units of equipment at 35 Group Subsidiaries to identify their energy saving potential and exploit it under the Energy Saving Programme;
  • had Taas-Yuryakh Neftegazodobycha certified for compliance with ISO 50001 (Energy Management Systems). All in all, 42 Group Subsidiaries accounting for 98% of the Company's total energy consumption in 2020 hold ISO 50001 certificates.

Power Generation Development

The reporting year saw the following generating facilities built or commissioned to help meet the projected Group energy needs in Exploration and Production:

  • In-house power plants:
    • 50 MW gas turbine power plant commissioned at the Srednebotuobinskoye field of Taas-Yuryakh Neftegazodobycha;
    • main construction and installation operations completed (96.6%) and pre-commissioning started at the 153 MW gas turbine and thermal power plant at the Tuapse Refinery (Phase 2); APCS pre-commissioning almost completed at the 105 MW gas turbine power plant at the Vostochno-Urengoysky license area of Rospan International;
  • 110 kV grid facilities:
    • two 110 kV substations with a total transformer capacity of 100 MVA and 64 km of 110 kV overhead lines commissioned at Orenburgneft and RN-Yuganskneftegaz.

On top of that, the Company renovated a 1.36 km CHP-Okha heat line, an important facility for the communities of the Sakhalin Region’s northern part.

Improved Energy Supply Reliability

Every year, the Company takes a number of steps to ensure uninterrupted energy supply of the existing and prospective production assets. In 2020, as part of its efforts to improve the supply efficiency and reliability, the Company conducted eight technical audits to check the quality of power facility management and drafted a remedial action plan to eliminate the gaps. The reporting year saw 106 remedial actions completed, with deadlines for another 166 not yet expired. This helped achieve a 12.7% year-on-year reduction in power failures across in-house electricity networks.

As part of technical audits, the Company also checks if its sites operate equipment in compliance with health and safety requirements.

Rosneft's Energy and HR departments have defined the key personnel development and training priorities for the Energy function, with the following steps taken to improve employee competencies:

  • group and individual development courses created for the Energy function (Upstream) to do in 2020–2021 after completing pilot tests and undergoing an assessment of professional skills;
  • professional competency profiles created for Oil Refining, Gas Processing and Petrochemicals, subject to an ongoing revision, together with the test questions, following pilot tests involving Energy Department experts;
  • work started to draft professional qualification guidelines for the eleven most common blue-collar energy professions in Exploration and Production, and Oil Refining, Gas Processing and Petrochemicals, with five already covered;
  • eleven dedicated courses included in the corporate curriculum for 2021;
  • Exploration and Production, and Oil Refining, Gas Processing and Petrochemicals coaches trained by their colleagues from the Energy Department to operate in-house power and heating plants and emergency shutdown systems, perform switching, and make the preparations to maintain or repair energy equipment.