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Igor Sechin and Bernard Looney held a working meeting

14/10/2021

As part of the Russian Energy Week-2021 (REW), a meeting was held between the Chief Executive Officer of Rosneft, Igor Sechin, and the Chief Executive Officer of BP, Bernard Looney.

The parties discussed the prospects for the development of cooperation, including the possibility of gas supplies to Europe under an export agreement between the companies. “Implementation of a pilot project to export 10 billion cubic meters of gas from Rosneft resources under an agreement with BP would allow in the future to provide additional gas supplies to the European market. This proposal was announced at a meeting with the President and is now being worked out by the Government of the Russian Federation, ”Igor Sechin said at the meeting.

The parties also discussed the possibility of creating a joint venture for the development of infrastructure for refueling vehicles with natural gas in the Russian Federation.

An important topic of the meeting was the strategic partnership of companies in the field of carbon management. The corresponding Agreement was signed by the parties in February 2021.

The parties are currently identifying further opportunities to improve the greenhouse gas emission reduction indicators.

Rosneft and BP are developing the latest design standards and evaluating the implementation of a number of low-carbon technologies at their joint ventures in Russia, and are considering projects in the fields of wind energy, energy efficiency, carbon capture and storage, and natural CO2 sequestration. All this contributes to the implementation of the low-carbon plans of both companies.

Another area of ​​cooperation is the exchange of experience on such issues as the methodology for accounting for greenhouse gas emissions, the practical application of technologies for determining the level of methane, as well as the development of optimal solutions to reduce its emissions.

During the meeting, the parties also discussed the implementation of joint projects. Since 2015, Rosneft and BP, together with Indian companies, have been developing the Srednebotuobinskoye oil and gas condensate field in Eastern Siberia (Taas-Yuryakh). Within the framework of the project, the construction of the main facilities of the second stage of the field development was completed. The production level is 14 thousand tons per day. In 2020, 4.8 million tons of liquid hydrocarbons were produced.

Work continues on the development of the Kharampursky and Festivalny license areas in Western Siberia.

It is planned to launch ESG projects on the basis of the joint ventures Kharampurneftegaz and Taas-Yuryakh Neftegazodobycha.

The companies are successfully implementing the largest joint production project abroad - Zohr in Egypt. At present, the production level averages 77 million m3 of gas per day.

Rosneft and BP continue their cooperation in the supply of oil and petroleum products. Since 2018, Rosneft has supplied 30 million tons of oil and petroleum products to BP.

The companies remain strategic partners in the German oil product market. Rosneft Deutschland continues to supply petroleum products to the BP filling network in Germany, as well as key fuels for the German market. In 2020, the volume of such supplies amounted to 3.6 million tons, in January-August 2021 - about 2 million tons. On average, this is over a third of all major fuels produced at factories with a share of Rosneft's ownership in Germany. 

Energy Transition

Rosneft is the first Russian company to present a comprehensive plan for the management of carbon by 2035 with clear targets to reduce greenhouse gas emissions. The plan includes:

Prevention of direct and indirect greenhouse gas emissions in the amount of 20 million tons of CO2-equivalent;
Reducing the intensity of direct and indirect emissions in oil and gas production by 30%;
Achieving the intensity of methane emissions below 0.25%;
Zero routine flaring of associated gas.

Over the past three years alone, Rosneft has reduced its gross emissions into the atmosphere by 17%. At the same time, Rosneft gives priority to methane emissions when working on emission control. Aware of its responsibility, in 2019 Rosneft joined the initiative of leading international oil and gas companies and signed the Guidelines for Reducing Methane Emissions in the Natural Gas Supply Chain transparency and much more.

Rosneft is implementing a comprehensive program to improve production processes and initiatives to reduce methane emissions. The expansion of this program, as well as the introduction of innovative technologies: unmanned aerial vehicles, laser and thermal imaging devices for scanning, ultrasonic detectors, will just help reduce the intensity of methane emissions below 0.25%.

To reduce methane leaks in the transport system, scanning using unmanned aerial vehicles is used. Drones are widely used in a number of Rosneft subsidiaries, for example, at Samotlorneftegaz and RN-Krasnodarneftegaz facilities. The use of drones increases efficiency and accuracy in identifying problem areas in the low temperatures of the Far North.

The global investment community, considering socially responsible investment as a long-term trend, highly appreciates the company's activities. The FTSE Russell division of the London Stock Exchange has confirmed that Rosneft is a member of the FTSE4Good Index Series. Rosneft was recognized as the best Russian oil and gas company in a number of international ESG ratings - Refinitiv, Bloomberg. In April 2021, the international agency Sustainalytics twice improved the position of the Company in its rating. With a score of 33.9, Rosneft became the best among Russian oil and gas companies. Rosneft also entered the Top-100 ESG of the Vigeo Eiris the Best Emerging Market Performers Ranking, becoming the only Russian oil and gas company in it.

BP has adopted a new Strategy, which provides for the achievement of key indicators aimed at achieving zero emissions by 2050 or sooner.

By 2030, BP plans to increase its annual investment in low-carbon technologies to about $ 5 billion, 10 times more than in 2019, as well as create a comprehensive portfolio of low-carbon technologies, including renewables, bioenergy, hydrogen energy developments and technologies for capturing, utilizing and storing CO2.   

By 2030, BP plans to bring in about 50 GW of net renewable generating capacity, 20 times more than in 2019, and double the number of customer interactions to 20 million per day.

Sustainable hydrocarbon production will remain one of the pillars of the strategy. BP will work to improve capital and operating cost efficiency and reduce emissions. The company intends to complete the implementation of its existing large projects, reducing capital intensity and continuing to improve the portfolio, which will lead to a significant decrease in volume and increase the competitiveness of production and processing.

By 2030, BP aims to reduce both the company's emissions and carbon emissions from oil and gas production (Goal 1 and Goal 2 of BP's net zero emissions ambition) by 30-35% and 35-40%, respectively.

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