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Igor Sechin and Bernard Looney hold a meeting

14 October 2021

During the Russian Energy Week-2021 (REW), a meeting was held between Igor Sechin, Chief Executive Officer of Rosneft, and Bernard Looney, Chief Executive Officer of BP.

The parties discussed the prospects of cooperation development, including the possibility of gas supplies to Europe under an export contract between the companies. “Implementation of a pilot project for the export of 10 billion cubic meters of gas from Rosneft resources under a contract with BP could help provide additional supplies to the European gas market in the future. This proposal was announced at the meeting with the President and is now being studied by the Government of the Russian Federation,” Igor Sechin said at the meeting.

The parties also discussed possible creation of a joint venture to develop infrastructure for refueling vehicles with natural gas in the Russian Federation.

An important topic of the meeting was the strategic partnership of the companies in carbon management. The respective Agreement was signed by the parties in February 2021.

The parties are currently identifying further opportunities to improve the greenhouse gas emission reduction indicators.

Rosneft and BP are developing the latest design standards and evaluating the implementation of a number of low-carbon technologies at their joint ventures in Russia, and are considering projects in the areas of wind energy, power efficiency, carbon capture and storage, and natural CO2 absorption. All this contributes to the delivery of the low-carbon plans of both companies.

Another area of cooperation is the experience sharing on such issues as the methodology for greenhouse gas emissions accounting, practical application of technologies to specify the level of methane, as well as the development of optimal solutions to reduce its emissions.

During the meeting, the parties also discussed the implementation of joint projects. Since 2015, Rosneft and BP, together with Indian companies, have been developing Srednebotuobinskoye oil and gas condensate field in East Siberia (Taas-Yuryakh). The construction of the main facilities of the second stage of the field development was completed in pursuance of the project. The production level equals 14 thousand tons per day. In 2020, 4.8 million tons of liquid hydrocarbons were produced.

The development of Kharampursky and Festivalny license areas in Western Siberia continues.

It is planned to launch ESG projects at joint ventures Kharampurneftegaz and Taas-Yuryakh Neftegazodobycha.

The companies are successfully implementing the largest joint production project abroad, Zohr in Egypt. At present, the production level averages 77 million cubic meters of gas per day.

Rosneft and BP continue to cooperate in the supply of oil and petroleum products. Since 2018, Rosneft has supplied 30 million tons of oil and petroleum products to BP.

The companies remain strategic partners in the German oil product market. Rosneft Deutschland continues to supply petroleum products to the BP retail network in Germany and the basic fuels to the German market. In 2020, these supplies amounted to 3.6 million tons and about 2 million tons in January-August 2021. On average, this is over a third of all basic fuels produced at the refineries shared by Rosneft in Germany.

For reference:

Rosneft is the first Russian oil and gas company, which presented a comprehensive Carbon Management Plan-2035 with clear targets on greenhouse gas emission reduction. The plan includes:

1. Prevention of direct and indirect greenhouse gas emissions of 20 million tonnes CO2-equivalent

2. A 30% reduction in the intensity of direct and indirect emissions in the Upstream;

3. Achievement of methane emission rate below 0.25%;

4. Zero routine flaring of associated gas.

During the last three years alone, Rosneft has reduced its gross emissions into the atmosphere by 17%. At the same time, Rosneft gives priority to methane emissions when working on emission control. Realizing its responsibility, in 2019 Rosneft joined the initiative of leading international oil and gas companies and signed the “Guidelines for reducing methane emissions in the natural gas value chain”, which provide for consistently reducing methane emissions, improving the accuracy of methane emissions data, increasing transparency and much more.

Rosneft is implementing a comprehensive program to improve production processes and initiatives to reduce methane emissions. The expansion of this program, as well as the introduction of innovative technologies: unmanned aerial vehicles, laser and thermal imaging devices for scanning, ultrasonic detectors, will just help reduce the intensity of methane emissions below 0.25%.

To reduce methane leaks in the transport system, scanning using unmanned aerial vehicles is used. Drones are widely used in a number of Rosneft subsidiaries, for example, at Samotlorneftegaz and RN-Krasnodarneftegaz facilities. The use of drones increases efficiency and accuracy in identifying problem areas in the low temperatures of the Far North.

The Company’s activities are highly praised by the global investment community that considers socially responsible investments a long-term trend. FTSE Russell, a division of the London Stock Exchange, has confirmed that Rosneft is a member of the FTSE4Good Index Series - in terms of its indicators, the Company is ahead of 90% of the participants in the international oil and gas industry rating of the Industry Classification Index (ICB supersector). Rosneft is recognized as the leading Russian oil and gas producer in a number of international ESG ratings, including Refinitiv and Bloomberg. In April 2021, the international agency Sustainalytics twice improved the Company’s position in its rating. With a score of 33.9, Rosneft became the best among Russian oil and gas companies. Rosneft also entered the Top-100 ESG of the Vigeo Eiris the Best Emerging Market Performers Ranking, becoming the only Russian oil and gas company in it.

BP’s ambition is to become a net zero company by 2050 or sooner and it has set out a strategy intended to deliver this.

By 2030, BP aims to have increased its annual low carbon investment to around $5 billion a year, a 10-fold increase from 2019, building out an integrated portfolio of low carbon technologies, including renewables, bioenergy and early positions in hydrogen and CCUS.

By 2030, BP aims to have developed around 50GW of net renewable generating capacity – a 20-fold increase from 2019 – and to have doubled its consumer interactions to 20 million a day.

Delivery of resilient and focused hydrocarbons will remain one of the foundations of the strategy. BP aims to drive capital and cost productivity up and emissions down completing its ongoing series of major projects, decreasing capital intensity, and to continue to high-grade its portfolio, resulting in significantly lower but more competitive production and refining throughput.

By 2030, BP aims for emissions from its operations and those associated with the carbon in its upstream oil and gas production (addressed by Aim 1 and Aim 2 of BP’s net zero ambition) to be lower by 30-35% and 35-40% respectively.

Information and Advertising Department
October 14, 2021

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.