ROSNEFT OIL COMPANY: Operating results for Q3 2021Source: EQS
ROSNEFT OIL COMPANY (ROSN)
OPERATING RESULTS FOR 3Q 2021 AND 9M 2021
Rosneft continues to implement activities under the
As part of the
Rosneft persistently enhances the level of HSE performance, guided by the principle of 'zero tolerance' for imposed golden safety rules violations committed by the Company's employees and contractors. Thanks to the implementation of measures to prevent accidents and mitigate their consequences, in 9M 2021 the number incidents related to the safety of technological processes decreased at the Company's subsidiaries. A decline in PSE-1 by 20% and PSE-2 by 31% YoY testifies this statement.
Rosneft pays priority attention to biodiversity conservation in all regions of the Company's presence. For instance, in 2021, 2 expeditions (in spring, and in summer-autumn period) arranged by Rosneft's
3Q 2021 liquids production reached 366.1 mln barrels (49.3 mln tonnes), having increased by 3.2% QoQ and by 1.8% YoY due to the gradual restrictions easing under the OPEC+ Agreement. Average daily liquids production amounted to 3.98 mln barrels per day. In a comparable perimeter (including asset disposals in 2020), the production growth amounted to 9.3% YoY.
9M 2021 liquids production amounted to 1,058.2 mln barrels (142.6 mln tonnes) having decreased YoY due to the substitution of low-margin assets with greenfields, as well as production restrictions under the OPEC+ Agreement.
In 3Q 2021, gas production amounted to 16.76 bln cubic meters, having increased by 4.3% QoQ and by 12.0% YoY. The rise is mainly attributed to the increase in natural gas production at the Rospan project. Average daily production reached 182.2 mln cubic meters per day. In the comparable perimeter, average daily production growth amounted to 23.2% YoY. In 3Q 2021, the gas share in total hydrocarbon production increased up to 21.8%.
In 9M 2021, gas production amounted to 47.81 bln cubic meters, up by 2.3% YoY. Average daily gas production increased by 2.6% up to 175.1 mln cubic meters per day. The positive dynamics of the indicator is mainly due to an increase in natural gas production at the Rospan project, an increase in sales of gas produced at the Zohr field (
As a result, 3Q 2021 hydrocarbon production amounted to 468.2 mln boe (63.0 mln toe), up by 3.4% QoQ and by 3.9% YoY. Average daily hydrocarbon production reached 5.09 mln boe per day. In the comparable perimeter (including asset disposals in 2020), production growth amounted to 12.1% YoY.
In 9M 2021, hydrocarbon production amounted to 1,349.4 mln boe (181.9 mln toe). Average daily hydrocarbon reached 4,943 th. boe per day. In the comparable perimeter, production growth reached 2.4% YoY.
Geological exploration, development drilling and new wells commissioning
In 9M 2021, the Company conducted 4.8 th. sq. km of 3D seismic works on the Russian onshore, a 22% increase YoY, and tested 53 exploration wells with an 89% success rate. In 9M 2021, total volume of 3D seismic works amounted to 5.8 th. sq. km. As a result of geological exploration, the Company discovered Kederginskoye gas condensate field in the
9M 2021 development drilling footage exceeded 8.1 mln meters, having increased by 2.6% YoY. The Company traditionally maintains the share of in-house drilling footage at 50% as a minimum.
In the reporting period, RN-Yuganskneftegaz, the Company's largest production asset, drilled a record-long horizontal well among the Company's subsidiaries conducting onshore drilling. Its depth amounted to 6,196 meters, and the length of the horizontal section was 3,034 meters. In order to efficiently develop the productive formation, equipment was installed to conduct a 30-stage hydraulic fracturing.
In 9M 2021, the number of newly commissioned wells exceeded 2.5 th. units, up by 40% YoY. The number of the most efficient new horizontal wells exceeded 1.7 th. units, up by 39% YoY, while their share in total number of newly commissioned wells amounted to 69%. In 9M 2021, the share of newly commissioned horizontal wells with multistage hydrofracturing exceeded 1 th. units, or 42% of the total number of wells commissioned over the period. Unit production per horizontal well overpassed the indicator for directional wells by more than 2 times.
Upstream projects development
From 2016 to 2020, the Company launched 13 new major exploration and production projects. In 9M 2021, the Company's share in total liquids production at these projects amounted to 504 th. barrels per day (18.6 mln tonnes), which is 28% higher YoY. The share of these projects reached 13% of the total liquids production, up by 3.6 p.p. YoY.
The Company continues to develop its production projects in accordance with the previously announced plans.
In the reporting period, Rosneft continued to actively implement a large-scale
The company has started design work and a complex of engineering surveys for key energy facilities, the autonomous power supply of which will be provided through the construction of its own power plants with a total capacity of about 3.5 GW.
The construction of berths has begun on the Yenisei river. As part of the autumn navigation, cargo is being delivered to the project facilities. By the end of the river navigation period, it is planned to deliver 150 th. tonnes of various cargo to the Taimyr bases. Rosneft's aircraft began operating flights from
As of the end of 3Q 2021, the implementation of the geological exploration programme continues: 8 exploration wells are under construction in the Zapadno-Irkinskiy, Irkinskiy, Peschaniy license areas, as well as at fields of the Vankor cluster. Preparations are underway to conduct 3D seismic work in 2021-2022 winter season.
The company continued to form the corporate structure of the
At the Severo-Komsomolskoye field, work is underway on the main facilities in order to prepare for the start of the field's full-scale development. The piling and installation works of the technological equipment of the central oil gathering point are in progress, the installation of 2 tanks (with a volume of 10,000 cubic meters) is underway. The underwater crossing of the interfield oil pipeline and gas pipeline has been completed, the linear part of the pipeline is being welded. The assembly of supports and the construction of pile foundations for power supply facilities are underway. In 9M 2021, as part of the pilot development, production at the field amounted to 10.9 th. barrels per day.
Rosneft continues the development of its key gas projects. Thus, at the Kharampurskoye field, work is being carried out in accordance with the schedule. Welding of the linear part of the external transport gas pipeline has been completed. Pneumatic testing of the pipeline is being carried out, as well as hydrotesting of absorbers at a complex gas treatment unit. As of the end of 3Q 2021, construction readiness of the key facilities is over 76%.
In 3Q 2021, oil refining throughput at the Company's refineries in
In 3Q 2021, oil refining throughput at the refineries in
As a result, in 3Q 2021 the Company's total refining throughput amounted to 27.1 mln tonnes, having increased by 2.8% QoQ and by 6.4% YoY. In 9M 2021, the indicator amounted to 79.8, up by 2.1% YoY. At the same time, oil refining depth increased by 0.7 p.p. QoQ and amounted to 76.9%, while light product yield was 55.8%.
Modern technologies development
Development of technological potential is one of the key elements of Rosneft's strategy.
In the reporting period, Rosneft received a patent for the invention of a 'green' technology for processing drill cuttings based on the principle of waste-free production within the
Experts of the
Specialists of the
Crude oil and petroleum products sales
In 9M 2021, crude oil supplies to non-CIS countries amounted to 73.8 mln tonnes. In 3Q 2021 the indicator amounted to 25.4 mln tonnes, including 13.5 mln tonnes supplied eastwards, or 53.1% of the total crude oil supplies to non-CIS countries.
In 9M 2021, the Company sold 75.9 mln tonnes of petroleum products, including 25.9 mln tonnes sold in 3Q 2021, which corresponds to 2Q 2021 level. The domestic market is a priority for motor fuel supplies for Rosneft. In 3Q 2021, the volume of petroleum products sold on the domestic market increased by 14% QoQ. At the same time, Rosneft sold 98% of the produced gasoline of
In 3Q 2021, the Company exceeded the required quotas for exchange-traded motor fuel sales on the St.
In the reporting period, as part of the long-term strategy for the development of the aviation fuel business, Rosneft Aero signed contracts for the execution of into-plane fueling at the airports of
In 9M 2021, the Company supplied to end-consumers, namely domestic and foreign ship owners, a total of 1 282 th. tonnes of bunker fuel, including 829 th. tonnes of marine fuel with sulfur content of up to 0.5% fully complying with the MARPOL regulations. Low-sulfur residual marine fuel RMLS 40 accounted for 22% of this volume (282 th. tonnes).
As of the end of 3Q 2021, the Company's retail network comprised 3,035 filling stations and complexes, including 2,974 filling stations and complexes in the
The Company's retail network continues to develop digital services. Thus, corporate clients can use the mobile application 'RN-Card', which allows to pay for fuel online without leaving a car, as well as to monitor the history of card transactions. In 3Q 2021, the updated version of the application allows to register a plastic fuel card.
In 3Q 2021, 80 filling stations in 5 regions were connected to the contactless remote fuel payment service via Yandex mobile applications. Thus, contactless payment for fuel via Yandex mobile applications is available at 1,533 filling stations of the Company in key regions of presence. The contactless payment service for related products with delivery to customer's car is available at more than 30% of the filling stations in the
At the end of 9M 2021, additional services at filling stations (parcel stations, equipment for dry-cleaning services) are available at more than 160 filling stations. The Company plans to further expand the range of services provided and increase the number of regions of their implementation.
Rosneft Information Division
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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.
 The dynamics are given in a comparable perimeter (including asset disposals in 2020).
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