Upstream

Rosneft onshore upstream strategic objectives are production maintenance and maximum utilization of the existing fields` potential, new projects rational implementation to secure sustainable production profile and maximum recovery rate as well as economically viable development of unconventional and challenged reservoirs. The Company plans effective resources conversion into reserves and their subsequent development to maintain production at the traditional activity regions and create new oil and gas production clusters on the basis of Vankor group and East Siberia fields.   

Technologies and service sector development

Rosneft is the leader of Russian oil and gas industry innovations – forming of a new type of high-tech oilfield services makes it possible to secure Company strategic requirements and best industry economic efficiency on the basis of its own drilling and service company RN-Bureniye with possible partners involvement and to establish a pool of innovative technologies and competences for all the key areas of further development. 

Offshore development

Rosneft strategic priority – unique growth perspectives implementation and value creation on the basis of the largest offshore assets portfolio.

The Company will resolve this task using advanced technologies in cooperation with strategic partners – leaders of global oil and gas industry in order to secure maximum effective exploration and production and minimal environmental impact.  

Rosneft plans to become the world largest development operator at the offshore fields with 45.8 bln toe prospective reserves.

Gas business development

Rosneft gas business development strategic objectives – long term increase of the Company shareholder value by gas production growth, secured by the highly effective long term sales portfolio.  

In order to meet the objectives, the Company works in the following key strategic areas:

• Implementation of the main gas production projects, including Rospan and Kharampur on time and within budget. 
• Improvement of gas sales economic efficiency in Russia by forming of favorable regulatory environment, including equal terms of access to infrastructure capacities and customers.   
• Improvement of production technologies and technological competences expansion, which will make it possible to:
• Develop Turonian reserves;
• Develop production of LPG and NGL;
• Increase APG useful utilization, incl. by development of own generation and petro and gas chemistry;
• In perspective – monetize gas reserves in East Siberia and Far East, incl. gas chemistry development.

Refining and petrochemistry

Strategic objectives of Rosneft Refining and Petrochemistry stream - maximum effective use of the produced oil, gas and other feedstock, production of high added value products.

The Company creates additional value for the shareholders by successful implementation of large scale refineries modernization program and new projects – VNKhK, Tuapse Refinery.

As part of international development, the Company participates in the Tianjin refining and petrochemical project in China, which will make it possible not only to supply feedstock to this company but also sell products in the Asia and Pacific region market.

Commerce and logistics

The Company commerce and logistics priorities are maximum efficient oil and oil products sales, guaranteed supplies of high quality fuel to customers, optimization of logistics costs and supplies stability, constant improvement of customer offer through its own retail network and wholesale channels as well as advanced trading practices development in Russia and abroad.

International business development

Rosneft has diversified assets portfolio in the perspective regions of international oil and gas business. The target of sustainable and profitable Company global presence is to create additional shareholder value and get new knowledge and competences for more effective projects elaboration in Russia as well as to develop Company competences and trading opportunities at the international market.  

Science and innovations

Rosneft is the leader of qualitative modernization and innovative changes in the Russian oil and gas industry. The Company efforts are aimed at the industry intellectual and technological potential development based on a solid Russian oil and gas school in partnership with the leading international oil companies.  

Health, Safety and Environment

Rosneft realizes and acknowledges it social, economic and environmental responsibility at the implementation of any company project. In its HSE activities the Company is guided by Russian legislation and rules of international law. The Company applies newest technologies and modern methods of production to create safe and healthy work environment for its employees and to minimize emergencies and accidents risks.  

Staff and social responsibility

Rosneft is the largest Russian tax payer. The Company is guided by high production and social standards. Its social focus is important for sustainable development and contributes to the reputation of a reliable and responsible employer and partner.

The Company strives to become the best Russian employer and offers optimal conditions for professional development, high social protection and health safety standards for its employees. 

Corporate governance

Rosneft corporate governance system is aimed at the protection of shareholders` rights, Company successful and sustainable development and effective and responsible management decisions.

The Company permanently strives to improve business processes and organizational efficiency.

Key factors of value creation in the mid-term perspective

1. Resource base buildup by successful onshore and offshore exploration activities:   
• Effective production replacement by new reserves;
• Strengthening of organization potential and access to new technologies to secure high exploration success rate;
• Acquisition of licenses in perspective regions and regions with developed infrastructure;
• Strategic partnerships with industry leaders to secure effective offshore exploration.
2. Positive oil production dynamics maintenance:
• Oil production stabilization at the West Siberia brownfields with simultaneous oil production growth in the Volga-Ural region;
• Planned development of new projects in East Siberia and in the Far East;
• Production from unconventional and challenged reservoirs;
• Development of own competences and technologies
3. Increase of integrated gas business cost due to production growth and direct sales contracts:
• Organic gas production growth and new assets effective integration;
• Increase of gas monetization efficiency and long term contracts share;
• LNG projects development in order to get access to gas export and increase of sales profitability.
4. Constant increase of refining, commerce and logistics integrated business profitability:
• Delivery of refining modernization program on time and within budget;
• Maintain strong brand and flexible marketing policy;
• Secure reliable supplies of qualitative oil products to the domestic market;
• Develop advanced oil and oil products trading forms.
5. Expenses control and capex discipline:
• Costs structure optimization;
• Effective investments management.
6. Financial sustainability and gradual debt burden reduction:     
• Sustainable positive cashflow generation;
• Consistent debt burden reduction.
7. Sustainable dividends payment:
• Maintain dividend profitability as per the best industry practice.
8. Improvement of information disclosure and investor relations standards:  
• Priority attention to shareholders and investors relations efficiency

Digital transformation

Digital transformation is one of Rosneft strategic initiatives which is ongoing throughout the company perimeter, affects all the streams and functions and transforms business processes. 

New technologies appear every day, which is why Rosneft created mechanisms to check their applicability for business tasks implementation. Rosneft actively monitors advanced developments and adapts them to Russian production processes. It arranges many-sided cooperation with universities, relevant agencies, technological partners and startups to resolve actual business tasks using advanced digital technologies.  

Digital transformation contributes to processes change and efficiency improvement, transition from traditional manual production to digital production, which opens up new vistas to the Company and each of its employees.