Gazprom Neft and Zyfra form a joint venture to develop digital solutions for industrial enterprises

Press-release Digitalization Partnership

7 June 2019 — Gazprom Neft and ZYFRA have agreed to establish a joint venture to develop digital solutions for managing production at industrial enterprises. The preliminary agreement was signed by Andrei Belevtsev, Chief Digital Transformation Officer of Gazprom Neft, and Igor Bogachev Chief Executive Officer of Zyfra during the St Petersburg International Economic Forum.

The companies will focus on developing digital solutions for integrated planning, operational accounting at refineries, monitoring and product quality control.

Russian and international oil, gas and petrochemical companies are seen as the potential customers for these digital solutions. Combining the digital skills and competencies of Gazprom Neft and Zyfra will enable the joint venture to become a unique market player in digitising upstream and refining businesses, the total market value of which is estimated at $36 billion.

Gazprom Neft has been developing its own integrated systems since 2017 in collaboration with IT market leaders. This new partnership with Zyfra will allow the company to expand on the experience gained by jointly implementing digital projects in oil refining. The strengthening of this cooperation will facilitate the development of cutting-edge management information systems in the fields of planning, forecasting of key indicators, identifying losses, operational accounting and optimisation of energy management.

Andrei Belevtsev, Chief Digital Transformation Officer of Gazprom Neft, commented: “Digital solutions improve business efficiency by accelerating projects and providing the best service to customers. These technologies have considerable potential for the entire industry and this new joint venture will make it possible to disseminate best practice throughout the market, bringing new partners into our digital ecosystem.”
Andrei Belevtsev
Andrei Belevtsev Chief Digital Transformation Officer of Gazprom Neft

Igor Bogachev, Chief Executive Officer of Zyfra noted: “We combine our efforts to offer Russian and international customers ground-breaking new digital solutions to manage upstream and refining operations. Technological innovation and proven economic benefits help cut production costs and reduce losses”.
Igor Bogachev Chief Executive Officer of Zyfra
Reference

Gazprom Neft PJSC is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.

Gazprom Neft is one of the world’s Top-10 public companies by proven liquid hydrocarbon reserves, and a global leader in its rapidity in reserves replacement. In terms of production and refining volumes it stands among the top three largest companies in Russia. Total production in 2018 reached 92.9 million tonnes of oil equivalent (mtoe), with refining volumes of 42.9 million tonnes.

Net profit at Gazprom Neft reached RUB376.7 billion in 2018, a 49-percent increase on 2017. The company is a market leader in terms of both financial growth and various efficiency metrics, including its internal rate of return (IRR).

The company’s majority shareholder is Gazprom PJSC (95.68 percent), with the remaining shares in free circulation.

ZYFRA is an international developer of IoT (Internet of Things) and AI (artificial intelligence) technologies for industry. The company’s clients include more than 270 businesses in industries including machine building, metallurgy, mining, oil and gas, and petrochemicals.

ZYFRA specialises in connecting industrial equipment and machinery to the Internet of Things, and in developing AI-based recommender systems, robotic equipment and industry business-management systems.