Gazprom Neft has completed the first cycle of its Technology Strategy, following the completion of a total 27 projects — the economic benefits of these being more than twice the initial investment. Long-term income from technology projects due for completion by 2025 is estimated at RUB130 billion,* with incremental production estimated at 110 million tonnes of oil equivalent (mtoe), and reserves growth at almost 600 mtoe. The company’s strategic objective is to become the industry leader in technological advancement, and to be proactively engaged in introducing new technologies to the market.
Gazprom Neft’s technology portfolio currently includes 100 projects in geological prospecting and production. Twenty seven projects, moreover, have already been completed, with the income arising from these standing at RUB2.5 billion — a two-fold increase on the investment made in implementing them.
Gazprom Neft’s Technology Strategy was formulated in 2014, and identifies nine key challenges facing the company — attention being focussed on working with hard-to-recover and unconventional reserves, increasing the development of mature fields, and developing acreage in the Arctic. Technology projects — of which there are more than 100 — were categorised into four groups in 2019, in line with likely impacts and implementation lead-times, allowing focus to be concentrated on innovations with the greatest potential.
Demand levels and scope for monetisation within the industry are key criteria in driving a development’s effectiveness.
«In 2019, in line with Gazprom Neft developing its strategy to 2030, we also updated our Technology Strategy, in order to focus on projects with the greatest return. But, even before completing the first phase, it became obvious that the new-technologies sector had colossal demand and marginality — if anything, it is, today, one of our company’s most effective activities in terms of income generation. And you have to take into account not just the immediate economic benefit, but also scope in terms of developing our competencies, accessing our partners’ experience, and entering new markets».Vadim Yakovlev First Deputy CEO, Gazprom Neft
* “Income” being Net Present Value (NPV), an economic indicator used in international accounting practice to evaluate the effectiveness of investment projects.