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Gazprom Neft becomes the first company in Russia to switch to full digital reporting of its reserves

2021 has seen all of Gazprom Neft’s upstream enterprises move over to full digital reporting of revised hydrocarbon reserves, for the first time.

An online data-interchange system between government and upstream companies has been put in place and is now being deployed by Gazprom Neft and the Russian Federal Geological Fund (Rosgeolfond).* This data has, hitherto, only been prepared in hard copy, and required thousands of pages for every company involved. Launching this system has made it possible to speed-up document transfer and verification, as well as simplifying interaction between participants involved in the process.

Gazpromneft-Noyabrskneftegaz was the first company to submit information in this new digital format, in 2019.** Following improvements in 2020, 12 Gazprom Neft subsidiaries have now submitted information on changing reserves (using electronic signatures) to Rosgeolfond. Following the move to a digital platform in 2020 the company has seen a 70% reduction in paper consumption in submitting regulatory reports. All Gazprom Neft subsidiaries have made the move to digital reporting this year.

Improvements to the system remain ongoing.*** A digital model added in 2021 now allows all participants involved in the process to exchange geophysical data and statistics on oil, gas and condensate reserves with a single click, in full compliance with all security policies.

Going forward, product functionality will be further enhanced with services to optimise the storage of geological and geophysical data, allow swift document searching, and automate the process of preparing materials for reserves evaluation. The system will be able to perform complex calculations and verify submissions against data in the State Reserves Register automatically.

“This project on digitising subsoil use, being implemented by Gazprom Neft together with Rosgeolfond, has already delivered a fundamentally new level in interaction between oil and gas companies and government. This has proved an advantage during the pandemic, allowing a significant amount of work — in terms of data submission and reserves evaluation — to be done remotely. The system we have developed is now becoming an industry benchmark, and the framework for interaction between subsoil users and regulatory agencies.”
Yuri Masalkin
Yuri Masalkin Director for Geological Exploration and Resource-Base Development, Gazprom Neft
“Rosgeolfond is working proactively on digitising hydrocarbon resource-base reporting and record keeping. We are, at the moment, developing a solution to collate the 6-GR Form and hydrocarbon reserves evaluations electronically. This digital platform will make interaction between government and subsoil users more efficient and transparent, reduce errors, cut companies’ labour costs, and simplify upstream companies’ work. Turning round geological information will be fully digital, going forward, and I am also confident that we will also continue developing our business relationship with Gazprom Neft.”
Dmitry Arakcheev
Dmitry Arakcheev Head of the Russian Federal Geological Fund (Rosgeolfond)
Notes for editors

* The Russian Federal Geological Fund (Rosgeolfond) is responsible for information management on the geological exploration and usage of mineral resources in the Russian Federation; for the collection, storage and provision of geological information; for maintaining records on fields, deposits and other mineral resources; for work on the geological exploration of mineral resources, and the outcomes of these; and for mineral reserves and resources in Russia.

** Changes in hydrocarbon reserves are reported through the Federal State Statistics Service’s Form No. 6-GR. This format applies to key types of hydrocarbon feedstocks (oil, gas, condensate) and the components they contain (ethane, propane, butane, sulphur, helium, nitrogen, carbon dioxide, and vanadium and nickel impurities). Subsoil users are required to submit the form to local geological funds at locations in which operations are being conducted, and to Rosgeolfond.

For government, Form No. 6-GR reporting is a tool for compiling and maintaining large volumes of reporting documents on subsoil usage, in order to compile and analyse consolidated reporting metrics on oil and gas companies in the course of licensing, and for the purposes of determining strategy on the rational and integrated use of subsoil resources in the Russian Federation.

*** The working group on this project was established in 2019, and includes employees from the Russian Federation Geological Fund, the State Reserves Commission Gazprom Neft PJSC and the Gazprom Neft Science and Technology Centre. The objective of this working group is to digitize the processes of collecting, generating, storing and maintaining geological and geophysical data resources, and to develop geographic-information and analytical systems for oil and gas companies and government agencies.