Rosneft is the leader of the Russian oil sector and the largest global public oil and gas corporation. Rosneft Oil Company is focused on exploration and appraisal of hydrocarbon fields, production of oil, gas and gas condensate, offshore field development projects, feedstock processing, sales of oil, gas and refined products in the territory of Russia and abroad.
The Company is included in the list of Russia’s strategic companies. Its main shareholder (50.0000001% shares) is ROSNEFTEGAZ JSC, which is 100% owned by the state, 19.75% of shares are owned by BP, 18.93% of shares are owned by QH Oil Investments LLC, one share is owned by the Russian Federation represented by the Federal Agency for State Property Management, the remaining shares are in in free float.
The main goals and objectives of Rosneft are the reserves replacement at the level of no less than 100%, efficient production at brownfields and its growth through starting up new projects, creation of new offshore production hubs, development of technologies and introduction of the world-class project management practices, monetization of gas reserves and competitive production growth, optimal refining configuration and selling Company’s products at the highest profit.
The Company has set a record in hydrocarbon production – 285.5 million toe having exceeded the 2017 level by 1.3 %. This result was achieved by improving the development methods and use of new technologies at brownfields, as well as the launch of four new major projects – Tagul, Russkoye, Kuyumbinskoye and the second stage of Srednebotuobinskoye.
Rosneft remains the leader among the major international oil and gas companies in terms of proven reserves. Their volume in 2018 according to the SEC classification increased by 4% amounting to 41.4 billion boe and the replacement rate with proved reserves reached 173%.
Company Sustainable Activity
- To ensure the relevance of disclosures made in the Report, the Company has performed a materiality assessment across individual sustainability performance indicators and topics provided in the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards), drawing on the analysis of its internal and external environments that was conducted with the involvement of stakeholders.
- To identify material topics, the Company performed a benchmarking analysis on non-financial reports by leading industry players, both within and outside Russia, followed by an analysis of industry events and trends which are significant for sustainability reporting purposes.
4.4 mmtoe energy consumption reduction by 2022
8 mmt of СО2-equivalent prevention of greenhouse gas emissions until 2022
170 filling stations selling compressed natural gas will be constructed by the end of the project
Reducing greenhouse gas emissions (GHG) to prevent climate change
Mitigating environmental impact, using the best available technologies for production, waste disposal, efficient wastewater treatment, as well as regular environmental investment projects and nature protection measures.
Taking measures to preserve the ecosystem and biodiversity, as well as to support natural resources recovery, including land reclamation.
The Rosneft-2022 Strategy makes provisions for a reduction of greenhouse gas emissions. The Company pursues the Investment Gas Program and the Energy Saving Program designed to prevent GHG emissions of over 8 mmt of CO2-equivalent by 2022. The Investment Gas Program is mainly focused on the reduction of associated petroleum gas flaring to a level below 5%, in accordance with the target stated by the Government of the Russian Federation.
- ISO 14001:2015
- OHSAS 18001:2007
- ISO 50001 Energy Management System
Sustainable Development Goals
How company covers SDGs
→Rosneft intends to become a top performer in accident-free operations and safe working conditions for employees and contractors. By the end of 2022, the Company plans to join the first quartile on comparable HSE indicators. The Company tries to create an accident-free operating environment and ensure the safety of its employees and contractors. Rosneft regularly holds and participates in road safety activities and implements initiatives preventing road accidents.
→In 2009, Rosneft launched an Energy Saving Program meant to reduce energy resources consumption, as well as to enhance economic, environmental, and production performance. The company changes the production structure in favor of more ecologically-friendly products, increases gas production and expands its share.
→Rosneft ensures the social protection of its employees and their families, the protection of jobs and the guaranteed integration of female employees into the staff after maternity leave. Rosneft recognizes the inviolability of the workers’ right to collective bargaining and the right of each employee to collective representation of interests, including by trade unions. The Company aims to cooperate with counterparties interested in the creation and sustainable development of their supply chains, the provision of new technological solutions and the implementation of innovations. Rosneft provides decent working and recreation conditions for those who work in remote regions and under adverse climatic conditions.
→Considering the increasing community demands and climatic components, the company aims to increase the production of natural gas, which allows a significant reduction in GHG emissions compared to other fuel types; the implementation of oil refinery development projects, building up the output of high-demand products and feedstock for the petrochemical industry;lower emissions and improved efficiency of production facilities; development and output of new product types, allowing consumers to reduce emissions and increase fuel efficiency.
→As a party to the United Nations Global Compact, the Company follows the principles of the Social Charter of Russian Business and supports the Anti- Corruption Charter of Russian Business. Rosneft shares the general principles and values of the Universal Declaration of Human Rights and of the International Labour Organization (ILO) Declaration of Fundamental Principles and Rights at Work, and supports initiatives promoting sustainable development, increased transparency, combating corruption, ensuring fundamental human rights, reducing inequality and protecting the environment.
Secondary SDGs : 1, 2, 4, 5, 6, 9, 10, 11, 12, 14, 15 and 16
- >240 RUB bln Green investments was done over 5 years.
- ~1 mln young plants were planted by Group Subsidiaries under the forest conservation activities.
- 10 filling stations selling compressed natural gas were constructed in 2018.
- In 2018, the Company reduced methane emission by 46% due to decreasing gas dispersal amounts, including a year-on-year reduction of fugitive emissions by 63%.
- Since 2016, the Company has reduced per unit greenhouse gas emissions by about 8%.
Rosneft has aimed to contribute in achieving all of 17 U.N sustainable development goals which were indicated in their annual 2018 sustainability report. In addition, they have received credible recognized certifications such as the ISO 14001 and the ISO 50001. However, as the company operates in the oil and gas industry, it greatly contributes to harming the sustainability of the environment. But they have lots of efforts to change their production structure in favor of more ecologically-friendly products, that’s why they have rated as ‘C’.