Russia (bbabo.net) - Rosneft has set itself an ambitious goal: while further increasing the company's efficiency, significantly reduce its carbon footprint. The Rosneft Board of Directors has approved the strategy "Rosneft-2030: Reliable Energy and Global Energy Transition". The new strategy, on the one hand, is aimed at developing the achievements of the previous strategy, on the other, it takes into account current trends related to the climate agenda, the global energy transition, the need for reliable supplies of affordable and clean energy.

In the long term, Rosneft intends to become a carbon neutral company by 2050. But before that, a number of intermediate goals have been set.

In particular, by 2030 it is planned to reduce emissions by 25 percent compared to 2020, as well as to implement additional measures for natural absorption, capture and storage of carbon. As early as 2025, the emissions from Coverage Areas 1 and 2 will be reduced by 5 percent.

Zero Routine Flaring of Associated Petroleum Gas will be achieved by 2030 - five years earlier than anticipated under the Carbon Management Plan 2035 and in line with the World Bank's Zero Routine Flaring of Associated Petroleum Gas by 2030 initiative.

Also, by 2030, the intensity of methane emissions will be reduced to less than 0.2 percent.

Rosneft will help to achieve the set goals, in particular, the gradual transfer of the company's own transport to low-carbon fuels. In addition, it is planned to develop gas filling stations and charging stations for electric vehicles. The company also plans to produce jet fuel with a reduced carbon footprint.

Now Rosneft is the leader in terms of unit costs for hydrocarbon production and intends to maintain these positions in the future. Thus, the target of the Rosneft-2030 strategy is 330 million tons of oil equivalent in the field of hydrocarbon production. The share of gas in total hydrocarbon production will grow to 25 percent by 2025.

“The key point of Rosneft’s new strategy is to achieve clean carbon neutrality by 2050,” said Alexander Frolov, deputy general director of the Institute for National Energy. carbon neutrality by 2050. However, unlike other majors who avoid any hint that they are related to hydrocarbon energy, Rosneft is not going to freeze its projects, give up promising assets and reduce hydrocarbon production. Strategic goal - 330 million tons of oil equivalent by 2030 with a stake on low-carbon projects. The company's production growth drivers will be the green barrels of the Vostok Oil project, and new gas projects - Rospan and Kharampur. With the full-scale launch of the latter, it will be possible to achieve another strategic goal of Rosneft "- an increase in the share of gas and in the total volume of hydrocarbon production up to 25 percent by 2025. "

In the field of oil refining, the strategy envisages an increase in the output of light oil products at refineries in the Russian Federation up to 69 percent.

One of the key strategic goals of the Company remains an increase in payments to shareholders and an increase in profitability. Rosneft aims to create a stable free cash flow in the medium term and increase it in the long term. Given the achievement of the targets set in the new strategy, the Company's free cash flow is expected to more than double by 2030.

Rosneft will continue to pay increased attention to environmental issues, in particular, to the preservation of biodiversity. The company plans to actively implement the principles of a circular economy. Rosneft also confirms its previously announced targets for 100% waste utilization and land reclamation of "historical heritage".

“Rosneft’s new strategy is not just dry numbers,” says the investment strategist and manager of Arikapital Sey Suverov. “It is important to realize that behind the target indicators there is a gigantic work on changing technological processes, large-scale investments, a systematic, strategic approach. Just a year ago, Rosneft unveiled its ambitious carbon management plan, the first such document among large Russian companies that set long-term emission control goals. And the investment community praised this plan. "

Experts believe that thanks to the new strategy, Rosneft will be able to strengthen its position in the global hydrocarbon market as a reliable producer and supplier of energy resources, while minimizing its impact on the climate and the environment.

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