Technologies developed in 2020 will bring in another RUB 7 billion for Gazprom Neft

Technologies developed in 2020 will bring in another RUB 7 billion for Gazprom Neft

Thirteen new technological products directed at improving efficiency in hydrocarbon exploration and production were developed by Gazprom Neft in 2020. The economic benefit of deploying these solutions could deliver a five-fold return on investment, reaching as much as RUB7 billion.*

Digital and technology products developed by the Gazprom Neft Science and Technology Centre will allow the company to cut costs and increase efficiency in the exploration and production of traditional and hard-to-recover reserves. The various areas in which these new solutions are expected to be in demand include field development and cargo delivery, seismic exploration, discovery of hidden oil-bearing intervals, enhanced oil recovery (EOR) at mature assets, construction of high-tech wells, and fracking operations. They are expected to generate additional production in the order of 200,000 tonnes to 2025, and will be monetized beyond the company.

Thirty-eight innovative solutions have already been developed and are being deployed throughout subsidiary companies’ activities. These include IT products, equipment, new materials and reagents, and new approaches to finding and developing hydrocarbon deposits. Technologies initially developed to order for specific Gazprom Neft subsidiaries are now in use on many of the company’s projects, as well as being deployed beyond the company, on the external market.

Gazprom Neft’s full technology-project portfolio to 2025 includes more than 100 products. Total income from deploying these is expected to reach RUB130 billion in the long term,** with additional production volumes reaching in the order of 110 million tonnes of oil equivalent (mtoe), and the company’s reserves increasing by almost 600 mtoe, as a result.

“Work on technologies remains one of the most profitable areas of the company’s business, because the ultimate outcome of any innovation is to make processes more efficient — to monetise additional resources by bringing these into production. But developing technology, per se, isn’t the end of work on a product. Once testing is complete, we are faced with the task of adapting a development in line with the environment in which it is going to be used — and making sure that it’s going to improve business processes and deliver the necessary economic benefit. Internal and external partners are involved in this, together with teams of developers. So the value to the business of those technologies developed in the Science and Technology Centre is determined not just while they are in development, but over the course of their being rolled out. Our 2020 performance makes clear that our teams are developing high-tech products, in demand at actual assets.” – Director for Technological Development, Gazprom Neft Alexey Vashkevich.

Reference

* In calculating the potential value a technology might bring to the company, metrics taken into account include the potential increase in production growth and reductions in lead times and the costs of works at company assets, as well as additional profits through selling the services or licenses necessary to manufacture such products on the external market.

** Such income being understood to mean net present value (NPV) — an internationally accepted indicator used to assess the economic viability of investment projects.

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