Rosneft unveils five-year plan to achieve business efficiency

Rosneft’s board has approved a five-year strategy that aims to bring qualitative changes to its business through the introduction of new technologies and increased returns of existing assets.

The Rosneft-2022 strategy aims to enhance the company’s business profitability and the returns on assets by accelerating the development, and focusing on the implementation of significant projects.

The company also plans to embark on execution of changes in the management model that will allow it to keep pace with the challenges of the digital era.

As part of the vision, the firm intends to reduce unit operating costs between 2% and 3% a year.

Rosneft CEO Igor Sechin said: “Today, the board of directors approved the strategy of change of the company’s business, which provides for getting to the new quality level of its development.

“Increasing the company’s valuation in every business line involves effective use of internal resources with consideration to the constraints of the environment.”

In relation to production, the company intends to replace at least 100% of the produced liquid hydrocarbons, with plans to develop several new projects and to increase the output to 250mtoe by 2022.

On the gas front, Rosneft is planning to increase production to more than 100bcm in order to occupy 20% on the Russian Federation gas market.

The company will achieve the target through the implementation of the gas production projects on time, with new projects such as Rospan, Harampur and Kynsko-Chaselskaya scheduled to be brought into operation within the next five years.

Through the development of the gas business, Rosneft expects to export pipeline gas to new European consumers.

The strategy also focuses on digitalisation and accelerated technological development across all spheres of operation of the company through accelerated replication of approved digital solutions to improve reliability and economic feasibility of production and to decrease losses.

Rosneft also aims to enhance the share of non-fuel retail by increasing the range of available goods and services.