At its meeting December 9, the Rosneft Board of Directors approved the main strategic objectives for Company developments.
In particular, Board of Directors members endorsed Rosneft Development Strategy and Long-term Development Program until 2030. The Company’s strategic goals aimed to enhance leadership in terms of volumes of production and reserves include:
Highly efficient asset management including cost reduction and performance improvement;
Four stages in production development: efficient reserves recovery at existing producing fields, massive launch of new projects in the East of Russia, onshore development of tight reserves in Russia and offshore projects implementation;
Growth of contracted gas production;
Development of powerful oil field services in Russia to unlock the full potential of the resource base: consolidation of corporate OFS function, development of OFS assets, achievement of global competitiveness;
Development and localization of advanced technologies, equipment manufacturing and services enabling development of new types of reserves and facilitating business efficiency growth;
Compliance with supreme HSE standards.
The Long-term Development Program contemplates replacement of economic reserves at the level of at least 100%, efficient production from brownfields and its growth through adding greenfields, creation of new offshore production clusters, development of technologies and implementation of world-class project management practices, monetization of gas reserves and competitive growth of production.
The Board also approved a number of internal regulations, namely Standard on auditing implementation of the Company’s long-term development program and Regulations on performance indicators framework. The Management Board was assigned to develop a set of actions aimed to improve governance efficiency and transparency across Rosneft and improve general performance efficiency.
The Board of Directors reviewed the loan program of the Company for the period until 2020. Within this program the following decisions were reached: amendments were made and confirmed to Rosneft bond resolution and prospectus for securities, Rosneft placement of bonds, approval of Rosneft bonds resolution; approval of prospectus for securities - Rosneft exchange-traded bonds.
The Board also made resolutions with respect to endorsement of related party transactions.
Commenting on the results of the Board meeting Igor Sechin said: “Today, Rosneft can truly be called a global energy company. The company has a balanced project portfolio and a clear vision of its development. Rosneft’s key priority is economic monetization of oil and gas reserves, including by building a long-term supply chain.
In the next few years we are planning to maintain production and efficiently bring on stream more reserves in our traditional regions of operation (West Siberia, the Far East, the Volga-Urals region) as well as launching a number of new projects in East Siberia.
We see our future as development of new, including unconventional, types of resources, those primarily being offshore and tight reserves. The company's hydrocarbon resources in offshore license blocks alone are estimated at over 46 billion tons of oil equivalent. This year an outstanding discovery was made – for the first time in 50 years a new Kara sea oil province was discovered. The province extends the largest oil and gas structures of West Siberia to the sea shelf. The first field of the province was named Pobeda.
Over the past two years Rosneft has created a sizeable gas business to become a number three gas producer in Russia. It has tripled gas production, arranged its efficient marketing, and put together a competitive portfolio of gas projects. We see a good potential to become Russia’s number two gas producer in the medium term.
Only an integrated and large company as Rosneft is capable of assuring efficient development of Russia’s unique resource base, facilitate strengthening of the country’s service sector and develop cutting-edge technologies required to open up new horizons for the Russian petroleum industry”.
Rosneft Information Division
Tel.: + 7 (499) 517-88-97
December 9, 2014