Russia's Rosneft CEO: Company's New Strategy Based on Technological Breakthrough

The new strategy of Russia's Rosneft oil company will be based on a qualitative change in its business through technological breakthrough and the use of digital technologies, Rosneft CEO Igor Sechin said Thursday, adding that the company will create an expert council to oversee these changes.

SOCHI (Sputnik) — Earlier in the day, Rosneft's CEO said that the company's management is planning to prepare a new strategy developed by order of Russian President Vladimir Putin.

"The new development strategy should be based on a qualitative change in the company's business due to technological breakthrough, full-scale digital transformation in all areas of the company's activities, constant efforts to reduce costs, improve the margins of the processing segment due to the flexibility of the basket, as well as transition to new forms of management and business administration," Sechin said at the annual meeting of shareholders of Rosneft.

According to Sechin, the company faces the task of technological breakthrough in oil exploration and production.

"We will solve this task by increasing the share of high-productive horizontal and branched wells to 40 percent by 2020, as well as using high-tech injection methods, including multi-stage fracturing, both on new and existing wells," he said.

To achieve this goal, Rosneft will conduct a comprehensive audit of the well stock, as well as optimize the digital models for exploration and development of key production projects using technologies to increase productivity and three- and four-dimensional geomechanical and physicochemical modeling.

"Particular attention should be paid to increasing the efficiency and continuity of operation of the existing well stock, achieved by the use of high-quality pumping equipment and the warranty obligations of the oilfield service companies and contractors aimed at increasing the average time between maintenance of the wells," the Rosneft head believes.

Rosneft is also establishing a technological council for the search and implementation of modern technologies, Sechin said.

"Its goal will be to find and identify promising technologies, strengthen internal technological expertise and effectively implement new technological solutions on the company's assets," he specified.

The head of Rosneft noted that representatives of Russian and foreign business, and scientific organizations agreed to participate in the work of the technology council. Among them are CEO of BP Bob Dudley, President and CEO of GE Oil & Gas Lorenzo Simonelli, Chairman of the Management Board of Gazprombank Andrey Akimov, as well as the rector of the Moscow State University Victor Sadovnichy, he said.