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Gazprom Neft board reviews utilisation and more effective usage of associated petroleum gas (APG)

Press-release Efficiency

The Gazprom Neft Board of Directors has reviewed its strategy on APG utilisation programmes and the more effective use of APG in 1H2016, as well as long-term plans for 2016 — 2017.

Average usage of APG at the company’s mature assets currently exceeds 93 percent. At Gazpromneft-Noyabrskneftegaz, in particular, APG utilisation in 2016 reached 95 percent — the result of commissioning a 200-million cubic-metre per year gas-boosting compressor station at the Novogodnee field (Purovsky district, Yamalo-Nenets Autonomous Okrug).

Gazprom Neft’s cumulative investment in project and infrastructure development for APG utilisation will exceed RUB33 billion in 2016 — a year-on-year increase of 10 percent. This growth is mainly due to greater capital investment in the development of gas infrastructure at the company’s new major projects, which will be responsible for more than half of total APG production in 2017.

New APG utilisation facilities are expected to be commissioned in 2017, including a gas processing complex at the Novoportovskoye field, producing 7 billion cubic metres per year, and a 4.8-billion-per-year-capacity compressor station at the southern section of the Orenburgskoye oil and gas condensate field.


The Board of Directors also reviewed initiatives in workplace safety (HSE) undertaken throughout 2016.

Improving workplace safety and HSE management systems is a major priority for Gazprom Neft. The company is committed to continuous improvement in its workplace safety standards, and is undertaking a range of initiatives to minimise equipment breakdowns and industrial accidents, as well as implementing international best practices and cutting-edge technologies in this area.

A project initiated in 2015 is directed at ensuring additional improvements in this area by further inculcating the company’s safety culture, incorporated into the company’s Corporate Code under a new corporate value — Safety and Environmental Protection — as part of this project in 2016. Gazprom Neft has also developed a corporate strategy to promote environmental protection, workplace safety and civil defence (health, safety, environment and civil defence — HSE and CD) going forward — the priorities here being the safety of the individual, the environment, and company property. The key principles of this strategy underpin all of Gazprom Neft’s activities in workplace safety: the company puts the safety of working personnel, the public and the environment above any considerations of an economic, technical or any other nature; is putting in place clear-cut and easy-to-understand rules governing workplace safety; ensures its employees have safe conditions in which to work, and demands the same of its partners; and gives employees the right to terminate — or to refuse to carry out — any operation that might, hypothetically, impact the health of others or cause harm to equipment or the environment.

In addition to the above the Gazprom Neft Board of Directors also considered information on new technologies in energy and transportation, and their potential impacts for the oil and gas industry in the future.

These included the most significant technologies and trends likely to impact the global energy balance, including the production of gas from hydrates, improving combustion-engine efficiency, the development of electric and driverless cars, alternative energy sources, and the use of natural gas for transport.

Developments in supply and demand for energy underpin Gazprom Neft’s long-term development strategy. The company will continue to monitor technological development in the energy sector and related industries, analysing the attendant risks and opportunities for its business.