The Rosneft Company approached Rospatent with the aim of getting an approval for the same brand to be recognized as well-known on the whole territory of the Russian Federation. After the materials of the application were considered, Rospatent took a decision to satisfy the request of the company.

From the point of view of legal regulation, in Russia a brand is acknowledged as well-known in case, resulting from its intensive use wide popularity in terms of products (goods, equipment) of the producer is gained. According to the public opinion poll, 99% of the Russians are aware of the «Rosneft» brand. These are high factors of recognizability which have contributed in their own way for the brand to be acknowledged as a widely known one.

Rosneft is included in the list of strategic enterprises of Russia.

«Rosneft tops the list of major public international oil and gas companies in terms of proven hydrocarbon reserves under SEC standards. In 2018, not only did Rosneft confirm its status as the world’s leading producer of oil and liquid hydrocarbons among publicly owned oil companies, but it also set new benchmarks for the industry. The Company posted record hydrocarbon production – 281.7 mln toe, up 1.3% year-on-year».

 

Gerhard Schroeder, Chairman of Rosneft’s Board of Directors.

Rosneft headquarters are in Moscow, the main assets are in Western Siberia, Timan-Pechora oil province, on the South of Russia, and on the Sakhalin island.

 

The history of Rosneft Oil Company is inextricably connected with the history of the domestic petroleum industry. The first reference to the enterprises being now a part of Rosneft goes back to the end of the 19th century. For example, in 1889 the oil-field exploration on Sakhalin was launched. Development of oil & gas fields on the Sakhalin main-land started in 1928.

Drill tower named after Zotov, in Okha, Sakhalin.

As of today projects on development of Sakhalin oil & gas fields are some of the grand industry projects of the world level. Because of the complexity, the realization of the project is using a phased approach.

 

The development of the three fields is foreseen — Chayvo, Odoptu and Arkutun-Dagi located in the North-East shelf of the Okhotsk Sea. It is estimated that the project life cycle will last as far as 2040-2050.

The partners to the «Sakhalin-1» project are PJSC Rosneft Oil Company — 20% share; ExхonMobil — 30% share; a consortium of Jananese companies SODECO with a 30% share; and an Indian state oil company ONGC Videsh with a share of 20%.

Some world records were set in the course of the «Sakhalin-1» project. The year 2017 was marked with a successful completion of drilling of the longest well in the world — 15 thousand meters — from the «Orlan» platform in the Chayvo oil field in the Okhotsk Sea.

The core assets of Rosneft Oil Company were established during the Soviet period when full-scale development of new oil and gas fields was launched. In the 1990s the major part of the petroleum industry was privatized. The petroleum assets remaining state-run had been managed by the state enterprise Rosneft which was reorganized in September 1995 into an Open Joint Stock Oil Company Rosneft. According to the results of 1995 the volume of production of oil and liquid hydrocarbons amounted to 12.7 million tons. Already in 2005 Rosneft took leadership among the Russian oil companies in terms of volumes of oil production.

«Rosneft, — as Mikhail Delyagin, the Director of the Institute for globalization problems, noted — has been setting an example of a complex development for a lengthy time based on a long-term strategic planning and indepth structural transformations, providing for substantial and longlasting synergy effect».

In 2017 the company approved a business strategy «Rosneft —2022» for the five years to come — one of the most ambitious strategies in the industry, fully in line with the challenges facing oil and gas corporations at the current stage. The strategy is targeting the company at the quality changes, in the first place, due to active implementation of new technologies in all spheres of activity: from exploration to refining and sales.

«I strongly believe that technological challenges are key both for oil industry and for power industry on the whole… Rosneft is facing the task while maintaining leadership in unit costs in production, increase margins along the whole chain of creating value»,

 

Igor I. Sechin, Chief Executive Officer
of Rosneft Oil Company.

In terms of Strategy «Rosneft-2022» it is planned to implement initiatives which would allow the company to get to the first quartile of international oil and gas companies according to various indicators. From early 2018 the company has initiated over 20 innovative projects in terms of the Strategy «Rosneft-2022». 700 mln roubles were invested to put into life and scale up efficient technologies tested earlier.

To count on a possibility to work with such a company as Rosneft, one has to proceed from the necessity to optimize work in various areas. At VSP we group such efforts in the following way — strategy, tactics and practical approach. In the first place, we proceed from the fact that work with Rosneft means big investments which may bring dividends in the perspective.

The main aspects and issues which our team started working through about 10 years ago, at present are brought together in the programme «Rosneft Special Customer».

ROSNEFT Special Customer is an extended programme of actions which is implemented by VSP in terms of development of work with one of the key customers both for our company, as well as for our partners-manufacturers which solutions the team is representing in Russia. Project design institutes, engineering companies and integrators, companies specialising on commercial questions, and of course, Rosneft production sites proper constitute the «organizational infrastructure» of the programme. Rosneft ecosystem complete is in the focus of the VSP programme «ROSNEFT Special Customer».

Russian oil companies provide for one of the minimal levels in the world in terms of a unit cost for development of reserves. Under the growing competition in the Exploration and Production sectors, Rosneft demonstrates one of the best indicators. Plans call for improvement of the indicator by 2-3% per year under the comparable conditions.

On the 3rd of April 2017 the drilling of the most Nothern well on the Russian Arctic shelf started — a Khatang sector of the Laptev Sea reserves. The start for exploration drilling was ordered by President Putin during a video conference with the Head of Rosneft who was at the time on the coast of Khatang gulf.

Henry Foy in Moscow, APRIL 19, 2017, Financial Times

Comprehensive scientific-research exploration works are carried out annually by Rosneft at its Arctic licensed sites. During the 18th Rosneft expedition — «Kara-Summer-2017» for the first time in the Russian Artics an iceberg was towed weighing 1.1 mln tonns in the conditions of an ice field. The results of an experiment are fundamental for extension of the drilling season in the Arctic seas.

The JSC RN-Bureniye was founded in March 2006 in the result of consolidation of the service assests of Rosneft.

RN-Bureniye is a leading high-tech Russian company providing drilling services on well drilling for oil and gas.

VSP implemented offers for
RN-Bureniye are based on the requirement for operators to monitor and control a process with account of stringent regulators’ requirements and standards in force. The drilling installations of 5000/320 EK-BMCh and 6000/400 EK-BMCh «Arctica» types are equipped with driller’s console incorporating Gecma (Eaton Electric) panel computers.

The state-of-the-art drilling monitoring and control systems, a combined heating system allow for continuous operation of drilling units under any meteorological conditions in the Arctic region. Drilling services offered by Rosneft among other Russian companies are the most advanced (~60% of the drilling fleet service life does not exceed 10 years), and the company is a test site for new prospective technologies and advanced practices.

JSC RN-Vankor is the operator for development of the Vankor cluster fields — Suzunskiy, Tagulskiy and Lodochniy which are located in the North of the Krasnoyarsk Area, next to Vankor field. The industrial operations started in 2009.

The gas programme of Vankor is unique for Russian oil industry and includes all the stages of useful application of associated petroleum gas. Due to this, the level of utilization exceeds 95%.

VSP carried out procurement of the Central oil collection point, as well as supplied equipment for gas program sites of the Vankor deposit: Parker Hannifin instrumentation products, Eaton Electric intrinsically safe interfaces and HART multiplexers; components for Fieldbus networks.

 

Due to technical characteristics and reliability of operation in difficult conditions, solutions represented by VSP in the market are in demand in the North of the Krasnoyarsk Area.

A set of technological innovations provide for growth of production while developing scavenger oil reserves and on the whole provides for an optimized field development.

 

Taas-Yuryakh Neftegasodobycha, RN-Uvatneftegas, RN-Yuganskneftegas, Samaraneftegas represent the enterprises where technological potential allows to implement the strategy «Rosneft-2022». The company pays special attention to innovation activities and application of breakthrough modern technics, thus defining a technological leadership as the key factor for competitiveness in the oil market.

 

It is indicative that new technologies, which are widely used worldwide, Foundation Fieldbus technologies in particular — physical layer MTL Fieldbus equipment — are used when developing Rosneft oil fields.

 

An interesting example of VSP cooperation with oil and gas production companies of Rosneft is set by complete supply of Emerson Micro Motion equipment (former Solartron, Mobrey Measurement) for Mamontovskoye oil field: a number of projects included density meters 7835.

At present VSP is offering an updated product range — CDM Micro Motion (instead of 7835 model) for online metering of commercial oil.

Emerson change-over for the new product line has been as well reflected in the VSP active marketing policy on the business line, which we have been pursuing for some years. Long-term

VSP customers and Solartron Mobrey metering equipment users were interested in getting new information. Specialized seminars at Rosneft enterprises made it possible in their own place to answer concrete questions of technical specialists.

The company is the largest oil processor in Russia and controls in the key regions of the country oil processing capacity of 116.5 mln tons per year. The average Nelson index at the company oil refineries in the Russian Federation is about 7.0. By 2025 Rosneft intends to complete modernization of its oil refineries.

 

Over 30 sites were refurbished in 2018, allowing Rosneft to switch on to Euro standards in fuel production. Summing up the year, it was stated that the volume of oil processing at Russian refineries increased by 15% — up to 100.6 mln tons, production indicators of quality improved: output of light oil products — up to 58.4%, and the depth of processing — to 75.2%. The company carries out a large-scale program of modernization of Russian plants.

«We continue with refurbishment of marginal installations: such as hydrocracking, catcracking and coke units which would allow us to raise the output of light oil products. The final stage of reconstruction will be a complete abandonment of production of heavy oil. We would expect that by the year 2025 we will complete the reconstruction», A.Romanov, Vice-president of the company on oil refining.

One of the main lines of development of Oil Refining and Petrochemical industry is production of oils and additives. Rosneft expects growth in consumption of Arctic lubricant oils up to 40 thousand tons per year up till 2020. The growth in demand will be due to development of Arctic and Far North regions.

Road transport / automotive

Nontransport / industrial

Other transport (marine, aviation, rail)

Compound annual growth rate, %

Lubricating oils have traditionally been one of the most attractive areas in the oil and gas value chain. However, looking ahead, one can see disruption as electrification takes hold in the transport sector. The main finding is that, while volume growth may be flattening, there is still room for value-pool expansion. This will, however, be highly variable by region, market segment, and product type.

 

Opinions: predictions vary concerning future use of traditional energy resources.

For example, the British BP, in general, is optimistic about the future of traditional energy resources, expecting demand for them to grow by third by 2040, mainly due to developing economies — first China and India, and after 2035 Africa as well. By 2040, the British company notes, the share of oil, gas, coal and non-fossil energy sources will constitute approximately 25% of the energy balance. Demand for oil, according to BP, will grow until 2040, but petrochemicals will become the main catalyst instead of transport. BP analysts note that by 2040, Russia will remain the largest exporter of primary energy resources in the world, providing up to 5% of global demand.

Projected annual lubricant demand by sector,
million tons

Sourse: Article Lubes growth opportunities remain
despite switch to electric vehicles
December, 2018, McKinsey&Company

The company developed and patented the composition and production technology of the first Russian multifunctional package of additives for hydraulic oils for industrial equipment. The unique composition allows the use of oils in severe climatic conditions. They are suitable for the Arctics and the Far North.

 

Lubricants and additives are produced at 6 Rosneft enterprises:

Novokuybyshevsk oil and additive plant; Angarsk petrochemical company; Oil Plant RN-Lubricants, Ryazan; Moscow Oil Products plant; Slavneft-YANOS refinery; Bashneft – Bashneft-NOVOIL.

Investments in the modernization of production processes — about 4.5 billion rubles allowed, for example, to complete the reconstruction of the primary oil processing plant ELOU-AT-6 at RNPK in 2018.

A-lok fittings, flanged fittings and Parker Hannifin instruments are used in the vacuum unit of the primary oil refining ELOU-AT-6, which is the most important facility for the company.

As of today VSP has been accredited with Rosneft enterprises and carries out projects on the main business lines of the company for most of the refineries — ANHK, Achinsk OR, Novokuybishevsk OR, Kuybishevsk OR, Syzransk OR, Tuapse OR, VNHK, RNPK, Yaroslavsky OR, …

In general, unlike many Russian companies, Rosneft's refineries are characterized by a significant distance from export markets due to their geographical location, which in some cases limits opportunities to improve the economic efficiency of oil refining.

An important project of Rosneft is the construction of the Zvezda shipyard in the Far East. Tankers, ice-class vessels, and offshore drilling platforms for oil and gas exploration and production will be built there.

A distinctive feature of Rosneft is the presence of its own export terminals in Tuapse, Nakhodka, and Arkhangelsk, which can significantly improve the company's logistics efficiency.

New ice-class tanker " RN Sakhalin"

made its first delivery

of petroleum products to the Sakhalin region.

SAKHALIN.INFO, December 6, 2018.

Loading of motor fuel on the ship was carried out in the port of Nakhodka by a subsidiary of the company — LLC "RN - Marine terminal Nakhodka". Bunkering of the first fuel batch took place in the port of Korsakov at the oil depot of RN-Vostoknefteproduct. Using its own tanker in the sea of Okhotsk will allow Rosneft to increase the reliability of providing Sakhalin with motor fuel.

For example, the reconstruction of biological treatment facilities at Bashneft — one of the priority projects launched in 2017 as part of the year of ecology — significantly reduces the negative impact of industrial wastewater of Bashneft on the Belaya river.

"The company is focused on rational development of natural resources, production of modern, eco-friendly fuels and reducing the impact on the environment. Within the framework of the Rosneft-2022 Strategy, we are implementing initiatives that will allow us to enter the first quartile of international oil and gas companies in the field of industrial safety, labor protection and the environment, as well as develop human resources and contribute to the integrated socio-economic development of the regions, fully meeting the UN sustainable development goals»,

 

Igor I. Sechin.

The company's share in oil production in the Russian Federation is about 41 %.

ROSNEFT is a Strategic Customer for VSP.

Starting with the year 2009, VSP is implementing an extended  programme ROSNEFT Special Customer, in terms of which it is developing business year by year, providing for the whole cycle of support — from presenting the latest developments by the partners-manufacturers to offering post-warranty support.

 

In March 2019 representatives of ROSNEFT and SIBINTEK participated in a specialized seminar «MTL intrinsically safe technologies and solutions in terms of Functional Safety standards» in Moscow. VSP and MTL specialists presented a report on the basic principles of building modern and safe control systems, as well as presented new engineering developments to the participants.

 

In October 2019 representatives of SIBINTEK visited MTL production site and head-quarters in the UK, in Luton.

New MTL solutions, company and production tour, meeting with the company specialists were the main points on the agenda.

It is a challenge to work with such a company as Rosneft. And not only because Rosneft makes high demands to its suppliers from the point of view of the level of suggested technical solutions and readiness of the team to provide a comprehensive support. The distributed geography of Rosneft production sites assumes in the first place, a possibility of balancing business capabilities with basic customer expectations. One has to ask himself if the team is ready to provide for a reliable and long-term operation with the company.

 

As of today, we work with 12 major Rosneft oil refineries.

Design institutes, engineering companies and integrators, companies that specialize on the commercial issues, and, of course, ROSNEFT production sites represent the main list of the  programme’s "organizational infrastructure". The entire ROSNEFT ecosystem is in the focus of the VSP programme ROSNEFT Special Customer.