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Minister of Energy Alexander Novak is given an insight into the potential offered by digital transformation for Gazprom Neft

Alexander Novak, Minister of Energy of the Russian Federation, recently visited Gazprom Neft’s House of Innovation and Efficiency Control and Project Management digital centres in St Petersburg, with Alexander Dyukov, CEO, Gazprom Neft, briefing the minister on major changes — based on digital technologies and data — being made to Gazprom Neft’s business models and company processes.

Gazprom Neft’s digital ecosystem brings together leading specialists in neural networks, artificial intelligence (AI), digital platforms, blockchain technologies, augmented and virtual reality, robotization and other Industry 4.0 technologies, promoting cross-functional collaboration between specialists working in various company departments including geological prospecting, production, oil refining and sales.

The company embarked on an integrated business-wide digital transformation programme in 2018. New technologies and management methods, in particular, are helping to reduce lead times in major oil and gas production projects. Gazprom Neft also plans to halve the time taken in achieving “first oil” in the next few years. The proactive development of digital tools for managing products’ entire value chain — from refineries to sales outlets — is also ongoing.

Minister of Energy Alexander Novak highlighted: “We were given an insight into how digital technologies are being implemented in practice in managing business processes throughout the entire value chain — from geological prospecting to filling-station fuel sales. Technologies like these help cut production costs, and make effective management solutions possible. It’s important that technologies like these are implemented not just throughout the oil industry, but also in electricity, heat and power, and coal mining, to maintain competitiveness on international markets.”
Alexander Novak Minister of Energy

Gazprom Neft specialists outlined projects already being implemented using technologies such as the Internet of Things (IoT), machine learning and other innovative solutions. Cognitive systems, in particular, are making it possible to cut the time taken in evaluating potential drilling sites from several weeks to 15 minutes. Gazprom Neft’s “Neftecontrol” system, meanwhile, is helping control the quantities and quality of petroleum products at every stage of their development and transportation, from refineries to tankers, ensuring production volumes and quality standards are maintained throughout.

Alexander Dyukov, CEO and Chairman of the Management Board, Gazprom Neft, commented: “Digital technologies are a major part of the company’s technological development. We have set ourselves the task of moving over to the full data-driven and digital management of all business processes. Digital transformation could give a 20-percent boost to our operating profit in the long term, through greater efficiency, faster project implementation, and a better understanding of client needs.”
Alexander Dyukov
Alexander Dyukov CEO and Chairman of the Management Board, Gazprom Neft