Gazprom Neft’s development strategy in the period after 2020 will focus on generating new sources of business growth, efficient development of mature fields, maintaining leadership in operating efficiency and achieving maximum returns on investment in order to ensure significant shareholder value growth and secure the Company’s sustainable development through to 2025.
JSC Gazprom has commenced oil production at the Prirazlomnoye field – the first project in Russia’s history to open up the resources of the Arctic Shelf – where work has begun on establishing a major hydrocarbon production centre. JSC Gazprom Neft is the operator in this project, and LLC Gazprom Neft Shelf is the licence holder.
The Gazprom Neft Board of Directors has approved the Company’s 2025 Development Strategy. The 2025 strategy uses the 2020 strategy as its foundation, taking into account both the changing industry environment and the state of the global economy. The document outlines the Company’s goals in key business areas, such as hydrocarbon production, refining, and sales. The 2025 Development Strategy reinforces the Company’s commitment to continue focusing on increased shareholder value.
In recognition of the growing importance of the use of innovative technologies in its operations, in 2013 the Company developed and approved an Innovation Policy. This sets out the key principles and approaches to managing innovative development in the analysis of technological challenges, researching and selecting possible solutions, and implementing cutting-edge projects.
This hard to recover reserves programme was approved by Gazprom Neft in 2012, with the aim of adding 60 million tonnes of reserves to the development portfolio before 2015. By 2020, that figure should rise to 300 million tonnes.
Horizontal well drilling with multi-stage hydrofracturing is the main technology for recovering depleted reserves approved by the Company in its 2013 projects. This technology uses multiple hydraulic fracturing in a single well to enhance oil production and raise the oil recovery factor by stimulating separate formations (for example, low-productivity ones) at the same time.
In the last six years, the large-scale refinery modernisation and upgrade programmes, together with the consolidation of assets, have dramatically increased the output of Gazprom Neft’s refineries by over 60%. The Company started producing Euro 4 and Euro 5 fuels two years ahead of the deadline stipulated in the Russian Government’s technical regulations. Further modernisation efforts will focus on increasing the oil-refining yield.
The programme implementation will enable Gazprom Neft’s refineries to produce more high value-added light oil products and to improve the quality of their output.
In 2012, the Omsk oil refinery completed the first stage of its development programme, aimed at improving product quality. In 2013, this allowed the Omsk oil refinery to switch completely to the production of Euro 4 and Euro 5 high-octane gasoline, and also to start production of Euro 5 diesel fuel.
As a part of the medium-term investment programme, in 2013 the Moscow oil refinery will switch completely to the production of Euro 5 gasoline, compliant with Russian technical regulations. The share of Euro 5 diesel fuel will account for over 75% of the total volume of diesel fuel produced at the Moscow oil refinery.
Investment in the Moscow oil refinery modernisation programme from 2013 to 2015
Also under the investment programme, the Company will invest over RUB 50 billion in the modernisation of the Moscow refinery between 2013 and 2015, thus making it possible to implement large-scale projects to improve the facility’s quality of petroleum products, increase its refining yield, reduce its environmental impact and improve its energy efficiency.
The G-Drive 98 hi-tech fuel with enhanced properties contains components developed by leading international experts in engine operational efficiency improvement. An active compound of additives increases engine power, improves acceleration, removes deposits from the fuel system and prevents them from reappearing, and also reduces fuel consumption.
Gazprom Neft-Lubricants intends to build on its competitive advantages by expanding its range of products and developing new products that are compliant with the latest specifications, in collaboration with leading international auto manufacturers. It is also planning to develop specialised technical services for its clients. The company will continue to build its distribution network and actively promote its products through premium sales channels, primarily at service stations.
In 2013, Gazprom Neft was the first oil company to reorganise its sales to achieve even higher results, both within the Gazpromneft filling station chain and in the wholesale business. The main purpose of the project is to strengthen the sales and corporate governance, in particular, by simplifying and integrating the sales structure and separating the financial results of the wholesale and retail businesses.
The retail sales restructuring began in June 2013 when the petroleum product supply enterprises were combined into three clusters: a central cluster in Saint Petersburg, a Ural cluster in Yekaterinburg, and a Siberian cluster in Novosibirsk.
