Gazprom Neft becomes the first company in Russia to switch to digital inventory reporting

Gazprom Neft becomes the first company in Russia to switch to digital inventory reporting

Gazprom Neft, in conjunction with the Russian Federal Geological Fund (Rosgeolfond), has launched a digital submissions system for reporting changes in hydrocarbon reserves (“inventory reporting”). Twelve Gazprom Neft subsidiaries have been able to submit reporting data to the State Register of Mineral Reserves in 2020, using this system. Other subsoil users will be able to migrate to this new format from 2021.

A pilot project for submitting information and data through State Statistical Oversight Form No. 6-GR* electronically (i.e., in digital format) was undertaken by Gazpromneft-Noyabrskneftegaz in 2019. This information and data had, previously, been prepared in hard copy, involving every business in preparing thousands of pages. That mechanism has been improved and fine-tuned this year, with information on changes in reserves volumes already being submitted to Rosgeolfond by 12 Gazprom Neft subsidiaries.**

Uploading of data and all subsequent interactions with government agencies can now take place online, through the subsoil user’s personal account. Rosgeolfond checks the validity of the electronic documents received and, assuming these comply with all requirements, confirms acceptance of reports. Any corrections to information, any submission of additional information, and correspondence with Rosgeolfond representatives can also be conducted using this service.

The launch of this system has cut the time spent in compiling, submitting and verifying documentation, as well as in simplifying interactions between subsoil users and government agencies.

Gazprom Neft and Rosgeolfond are now continuing their work on developing the service.*** Going forward, it will help optimise the storage of geological and geophysical data sources, as well as facilitating quick search facilities on technical information, and access to this. It is anticipated that this digital project will be able to support the integral accumulation not just of data on inventory reporting, but also data on many other metrics involved in oil production projects.

“The competitiveness of the oil and gas industry largely depends on the pace of its digital transformation — which offers the opportunity to increase processes’ speed and efficiency, as well as increasing volumes and accuracy in data processing. This project, on digitising subsoil usage, developed by Gazprom Neft in conjunction with Rosgeolfond and colleagues from the Gazprom Neft Science and Technology Centre, is making it possible for us to move towards a fundamentally new level of engagement between oil and gas companies, and government”, — Director for Geological Prospecting and Resource Base Development, Gazprom Neft Yuri Masalkin.

“Having adopted advanced digital technologies in oil production and refining, our company is now also rolling out this approach in optimizing other processes. Last year we were the first company in Russia to successfully submit a digital inventory report, creating a new trend — the future standard for the entire industry. To date, 12 Gazprom Neft subsidiaries have, already, taken advantage of this opportunity. Together with colleagues from Rosgeolfond we are continuing to improve and fine-tune this digital reporting mechanism, which will soon prove an indispensable tool for all Russian subsoil users”, — Director for Technological Development, Gazprom Neft Alexei Vashkevich.


* Statistical reporting on Form No. 6-GR applies to key types of hydrocarbon feedstocks (oil, gas, condensate) and the components they contain (ethane, propane, butane, sulphur, helium, nitrogen, carbon dioxide, 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 (a Federal State Budgetary Institution).

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.

** Twelve Gazprom Neft subsidiaries have made the move to digital reporting, including: Gazpromneft-GEO; Gazpromneft-Noyabrskneftegaz; Gazpromneft-Zapolyarye; Gazpromneft-Orenburg; Gazpromneft-Shelf; Gazpromneft-Yamal; Meretoyakhaneftegaz; Gazpromneft-Vostok; Gazpromneft-Khantos; Messoyakhaneftegaz; the Bazhenov Technology Centre, and Enercom LLC.

*** The working group on this project was established in 2019, and includes employees from the Russian Federation Geological Fund (a Federal State Budgetary Institution), the State Reserves Commission (a Federal State Budgetary Institution), 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.

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