The Rosneft Board of Directors approved the oil company’s strategy until 2030, it was named Rosneft-2030: Reliable Energy and Global Energy Transition. This is reported on website oil company on Tuesday, December 21st.
The strategy builds on previous achievements and also takes into account current trends related to the climate agenda.
“Today the Board of Directors approved a new Strategy and laid the foundation for the company’s development for decades to come. The new strategy will help to more than double free cash flow by 2030 and ensure stable growth in the company’s value for shareholders and investors. At the same time, the goals of the strategy to reduce emissions confirm the company’s status as a responsible supplier of energy resources and one of the leaders in the energy transition in the Russian Federation, “commented Igor Sechin, head of Rosneft.
In particular, the company aims to achieve net carbon neutrality by 2050 in terms of Scope 1 and 2. In achieving this goal, Rosneft will be helped by a number of strategic initiatives to reduce emissions by 2030. These include a 25% reduction in emissions Coverage areas 1 and 2 compared to 2020; achieving zero routine flaring of associated petroleum gas; reduction of the intensity of methane emissions to less than 0.2%; gradual conversion of the Company’s own transport to low-carbon fuels; production and sale of aviation fuels with a reduced carbon footprint.
The Rosneft-2030 strategy also is aimed at retaining leadership in terms of unit costs of production. In the field of hydrocarbon production, the target is 330 million toe, and one of the key growth drivers will be the flagship project of Vostok Oil.
Valery Andrianov, Associate Professor of the Financial University under the Government of Russia, commenting on the company’s new strategy to Izvestia, noted that investors are attracted by “a reasonable approach to the requirements of the energy transition and the absence of a hysterical” green “campaign.”
“It is obvious that the new strategy did not emerge from scratch. It is based on accurate, almost jewelry calculation and strategic planning. The company has reached the previously announced targets ahead of schedule and feels the strength to develop and increase this success. There is no doubt that the tasks of the new strategy will also be successfully fulfilled, ”he stressed.
On December 10, the largest American investment bank JPMorgan included Rosneft in the list of the most preferred companies for investment in the world in 2022. Analysts noted the high attractiveness of the Vostok Oil project: low unit costs of production, as well as a low carbon footprint, which is 75% lower than that of other major new oil projects in the world, makes it one of the most promising production projects.
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