• ~40% share in oil production in Russia
• 14% share in gas production in Russia
• 28% share of gas in the Company's hydrocarbon production
• 13 large oil refineries in Russia
• 32% share in the Russian refining market
• about 3 thousand filling stations

Rosneft Oil Company operates in all major oil and gas bearing provinces of Russia, including Western and Eastern Siberia, the Volga region, the Urals, the Far East, Timan-Pechora, Krasnodar Territory, as well as in the offshore regions of the Russian Federation.

Rosneft is the leader of the green agenda among the enterprises of the fuel and energy complex of the Russian Federation.

Exploration

Rosneft is the undisputed leader in terms of hydrocarbon reserves among publicly traded oil and gas companies in the world.

The Company carries out geological exploration in all subsoil use regions in the Russian Federation, including the Far East, Eastern and Western Siberia, Central Russia, Timan-Pechora and Southern Russia. In 2023, a record success rate of 90% was achieved with 73 onshore wells completed and tested.

According to the reserves audit results as per the PRMS international classification, the Company's 2P hydrocarbon reserves as of the end of 2023 amounted to 11.4 billion tons of oil equivalent. Incremental 2P reserves replacement exceeds 100%.

Production drilling in 2023 amounted to 12.0 mln meters; 3.2 thousand new wells were put into operation, 71% of which were horizontal wells

The Company is the largest subsoil user in the Russian seas: Rosneft holds licenses for the development of 55 blocks on the continental shelf of the Russian Federation. Hydrocarbon resources in these blocks amount to about 41.5 billion tons of oil equivalent. Rosneft implements a large-scale program for geologic exploration on the shelf and annually exceeds its license obligations.

Among the most notable discoveries made by Rosneft exploration team in recent years are the largest fields in the world and in the Russian Federation: the Madachagh field offshore the Pechora Sea, the West Irkinskoye oil field in the Krasnoyarsk Territory and the Zhukov and Rokossovskoye gas fields offshore the Kara Sea. Their total potential is estimated at more than 4 billion barrels of oil equivalent. In addition, the Company discovered the gas condensate field, later named after E. Zinichev, unique in terms of its reserves, in the Krasnoyarsk Territory with recoverable gas reserves of 384 billion cubic meters in the AB1C1+B2C2 category, and the large Kaderginskoye gas field in Yakutia, with recoverable gas reserves of more than 43 billion cubic meters in the AB1C1+B2C2 category.

Production and Development

Efficient management of the portfolio of producing assets and investments in new field development allows Rosneft to ensure stable current and future growth of hydrocarbon production.

Rosneft is the largest company in the Russian Federation in terms of crude oil production. As of 2023, the Company's hydrocarbon production amounted to 269.8 million tons of oil equivalent, including 193.6 million tons of liquid hydrocarbons.

Rosneft is the largest independent gas producer in Russia. At the end of 2023, gas production reached a new historical high of 92.2 billion cubic meters.

The Flagship Vostok Oil Project

In 2020, Rosneft launched the Vostok Oil project, the largest in the global oil and gas industry.

The Project includes 52 license blocks in the north of the Krasnoyarsk Territory and in the Yamalo-Nenets Autonomous District, which hold 13 oil and gas fields, including fields in the Vankor (includes the Vankor, Suzun, Tagul and Lodochnoye fields) and Payakha clusters. The resource base of the project is 6.5 billion tons. This estimate is confirmed by the results of large-scale exploration work, detailed reports by world-class experts and international auditors.

Exploration results are exceeding the related forecasts by several times, which allows for confident planning of high production levels for many decades. The logistical advantage of the Vostok Oil project is the ability to supply raw materials from the fields to all international markets, especially - to the Asia-Pacific region.

The record low specific production costs and low carbon footprint (only a quarter of the global average for new projects) make Vostok Oil one of the most environmentally friendly and green upstream oil projects in the world. Vostok Oil's crude oil is unique in its composition: it is a premium quality light, low-sulphur crude with a sulphur content of 0.01% to 0.1%. This indicator is comparable to the Euro-3 standard requirement for diesel fuel. In fact, these are "green barrels", which are produced using advanced technologies. Their production makes it possible to significantly relieve or eliminate the need for separate units at refineries, significantly reducing greenhouse emissions.

Wind generation will be integrated into Vostok Oil's power system along with traditional thermal generation, which is a unique feature of the project. The maximum capacity of the wind farm may be up to 200 MW. A distinctive feature of the project is also the almost 100% beneficial utilization of associated petroleum gas, which is used to cover its energy needs.

The key oil transportation artery of the Vostok Oil project will be the unique Vankor-Payakha-Sever Bay trunk pipeline. This pipeline will deliver Vostok Oil's commercial oil to the port of Sever Bay. The new oil pipeline system will include both the existing infrastructure facilities of the Vankor cluster and those to be built on the Taimyr Peninsula in the coming years.

The project is focused on the extensive use of in-house and domestic solutions: over 99% of equipment and components at Vostok Oil's power facilities are domestically produced.

Oil and Gas Processing

Rosneft Oil Company is the leader in the Russian refining industry. The Company accounts for more than 30% of crude oil refining in Russia. In 2023, the Company refined 88 mln tons of crude oil.

The Company's refining and petrochemical block includes 13 refineries, as well as three petrochemical plants, four gas processing plants, three catalysts manufacturing facilities and one service enterprise.

Rosneft is a leader in the domestic market of catalysts for the petrochemical industry. The Company's plants manufacture products that are on par with the best world analogs and, in some respects, surpass them.

Since 2020, Rosneft has completely refused imports and switched to using only domestically manufactured hydrotreating and hydrocracking catalysts. Thus, the most important strategic objective of reducing the degree of domestic refining industry's dependence on imported catalysts was achieved. In 2022, the Company began exporting its own catalysts overseas.

More than 900 tons of diesel hydrotreating catalysts and protective layer catalysts, more than 200 tons of reforming catalysts and about 160 tons of catalysts and adsorbents for hydrogen production units were manufactured in 2023.

The Company's refineries continue to introduce diesel hydrotreating catalysts with recovered activity: over 1,000 tons of spent diesel hydrotreating catalysts were regenerated and reactivated. Successful operation of integrated catalytic systems including hydrotreating, dewaxing and hydrofinishing catalysts was launched, which enabled the Company to increase production of winter diesel fuel grades.

Fuel Supply and Retail Sales

Stable supply of high-quality motor fuel to Russian consumers is one of Rosneft's key priorities.

In 2023, the Company sold 42.4 million tons of petroleum products on the domestic market, including 13.0 million tons of gasoline and 17.2 million tons of diesel fuel.

Rosneft is an active participant of trading on the St. Petersburg International Mercantile Exchange (SPIMEX). In 2023, the Company sold 8.7 mln tons of motor fuel on the exchange, which is more than twice the benchmark. The share in the total volume of exchange sales of gasoline and diesel fuel amounted to 40%.

The brand of Rosneft filling stations is one of the leaders in Russia in terms of fuel recognition and quality. The geography of the Company's retail business covers 61 regions of Russia. Rosneft operates about 3,000 filling stations in Russia, Belarus, Kyrgyzstan and Abkhazia.

There are stores, cafes, pharmacy outlets, postamats and dry-cleaning machines functioning on the premises of filling stations. The Company is also developing a new area of customer service at its filling stations - food trucks (mobile retail outlets). The "cafe on wheels" service is available at filling stations in St. Petersburg, on the federal highway between St. Petersburg and the Republic of Karelia and in Arkhangelsk.

The Company is also implementing a program to introduce compressed natural gas (CNG) filling stations. As of today, the network of gas stations and modules at filling stations includes 25 facilities in Voronezh, Penza, Samara, Saratov, Orenburg and Ulyanovsk Regions, Krasnodar and Stavropol Territories, Ingushetia, Mordovia and Udmurtia.

The Company equips its filling stations with charging infrastructure for electric vehicles. Rosneft's filling stations have 80 charging stations in 12 regions of Russia, from St. Petersburg to the Zabaikalye Territory. Most of the charging stations support the fast charging function and are capable of charging an electric vehicle's battery up to 80% in just 20 minutes.

One of Rosneft's priorities is the development of premium petroleum product sales channels, including aviation refueling, bunkering and bitumen segments.

Rosneft performs "into-plane" refueling at more than 30 Russian and foreign airports. Rosneft's activities in the bunkering business cover the main sea and river bunkering ports in Russia. In the bitumen segment, Rosneft develops production and sales of high-tech modern materials for road construction, primarily modified products that significantly improve the quality of road surfaces.

Sustainable Development (ESG)

Rosneft's strategy is based on building a business that takes into account the highest requirements in the field of ecology, industrial safety and environmental protection. Rosneft has been a member of the UN Global Compact since 2010 and publishes annual Sustainability Reports.

The mission of Rosneft Oil Company, its values, guidelines and strategic principles are in line with the 17 UN Sustainable Development Goals. The Company has identified five priority goals to which it will contribute in the course of its core activities: "Good Health and Wellbeing", "Affordable and Clean Energy", "Decent Work and Economic Growth", " Fighting Climate Change", and "Partnership for Sustainable Development".

In December 2021, the Company's Board of Directors approved a new development strategy "Rosneft 2030: Reliable Energy and Global Energy Transition". As part of the adopted strategy, Rosneft aims to achieve net carbon neutrality by 2050.

In 2021, Rosneft became the only Russian oil and gas company to be recognized as a leader in sustainable development and included in the Global Compact LEAD initiative for its unwavering commitment to the UN Global Compact and the Ten Principles of Responsible Business.

Rosneft directly contributes to the realization of the UN 17 Sustainable Development Goals not only through its core activities, but also by supporting various projects and initiatives aimed at improving the quality of life in the regions where it operates, developing healthcare, science and education, culture, and environmental protection.

In 2023 Rosneft confirmed its leading sustainability position in the Russian and international oil and gas industry. The Company entered the Moscow Exchange - RAEX "ESG Balanced" index, consisting of 15 stocks of issuers with the highest ESG rankings from RAEX-Analytica, the largest agency in the field of non-credit ratings. In the reporting period, the Company was again included in the Moscow Exchange-RUIE Index "Responsibility and Openness" and the Moscow Exchange-RUIE Index "Sustainable Development Vector".

Rosneft became the best Russian oil and gas company in the World Benchmarking Alliance's international sustainability ranking, which assesses the contribution of the world's 100 largest companies to the UN SDGs every two years, and was ranked among the top 10 companies by a number of indicators.

In 2023, Rosneft was included in the group of companies with high social rating indicators (top 2) according to the results of the assessment by ISS, the largest international provider of services in the field of sustainable development and responsible investments.

Rosneft-2030 Strategy

The key priorities of the "Rosneft-2030: Reliable Energy and Global Energy Transition" Strategy are to reduce carbon footprint, achieve operational leadership and improve performance efficiency.

The main goal of the Company's long-term development strategy is to achieve carbon neutrality by 2050 across Scopes 1 and 2. Rosneft was the first company in the domestic oil and gas industry to set such a strategic goal.

The Rosneft-2030 Strategy formulates short- and medium-term horizons of the climate agenda: by 2035 - reduction of absolute greenhouse gas emissions by 25%; by 2030 - reduction of methane emissions intensity to less than 0.2%; zero routine flaring of associated petroleum gas; reduction of specific greenhouse gas emissions in the Upstream segment to less than 20 kg CO2/barrel of oil equivalent.

Carbon neutrality is the basis for Rosneft's strategic vision: to remain a reliable producer while minimizing the impact on the climate and the environment. This objective is planned to be realized through measures to reduce emissions, develop energy-saving technologies and carbon capture and storage technologies, use low-carbon generation and natural absorption potential, and a number of others.

At the same time, the Rosneft-2030 Strategy defines the directions of the Company's development in all segments of its operations: maintaining leadership in terms of specific production costs, increasing the share of gas in total production up to 25%, increasing payments to shareholders and profitability growth, active implementation of circular economy principles, application of approaches to biodiversity conservation, etc.

Science and Innovations

Rosneft Oil Company is a leader of innovative changes in the Russian oil and gas industry. The Company's efforts are aimed at developing the intellectual and technological potential of the industry based on the strong foundation of the Russian oil and gas school, one of the best in the world.

Rosneft has the largest Scientific and Projects Block in Europe, which has a large-scale infrastructure and outstanding research potential: it includes 30 institutes employing more than 18,500 highly qualified specialists.

The Scientific and Projects Block is represented in all regions of the Company's operations, including those overseas. At the same time, the applied interest of scientists covers all business areas: from field development to retail.

Rosneft is the first Russian oil company to successfully create and develop a line of proprietary software for solving production tasks in geology, design, field development and operation. Specialists of the Science and Projects Block have developed 24 software packages, 16 of which have already been implemented in production operations, including RN-GRID for modeling hydraulic fracturing, RN-GEOSIM, RN-KIM, RN-SIGMA etc. Rosneft uses 74% of its own software for exploration and production and 100% in such areas as hydrodynamic modeling, hydraulic fracturing design and geo-navigation. The effect from the implementation of in-house IT developments already amounts to about 10 billion rubles.

The Company's software products surpass imported analogs both in terms of the list of tasks to be solved and the speed of calculations performed. The quality and efficiency of Rosneft's software is also evidenced by its successful commercialization. Ten software products are available for purchase by Russian fuel and energy companies, eight of which are included in the Unified Register of Russian Programs for Electronic Computers and Databases.

As part of digital transformation and IT technology development, digitization of the entire oil production process is being actively pursued as part of the Digital Field project. Full-scale digital twins are currently operating at the Company's assets in Bashkiria and the Tyumen Region. The project is being scaled up to other subsidiaries.

Rosneft has an Innovation Development Program, which is focused on achieving the Company's priority goals and addresses efficiency, sustainable development, transparency, social responsibility and innovation.

In 2023, the Company continued systematic work to implement R&D results and secure intellectual property rights. The Company filed 68 applications for copyright protection documents, obtained 72 patents, and by the end of 2023 Rosneft owns 1,027 patents for innovative developments.

Rosneft places its bets on accelerated digitalization of business and industrial Internet technologies, which will allow to fundamentally strengthen control over material flows and eliminate the factor of human errors.

Environmental Protection

Rosneft prioritizes environmental protection, conservation and restoration of natural resources.

The Company's green investments, aimed at improving the environmental friendliness of its business and minimizing its environmental impact, have exceeded RUB 175 billion over the last 3 years.

The Company's environmental initiatives include rational use of associated petroleum gas, reduction of greenhouse gas emissions and improvement of technologies for their capture and storage, optimization of water treatment and wastewater disposal processes, land reclamation and ecosystem protection.

In the field of natural resource conservation, the Company actively implements the principles of "circular economy" ("closed cycle economy"), which implies zero-waste production technologies, reuse and recovery of resources.

Rosneft implements a number of comprehensive programs to conserve and restore natural resources. An important part of Rosneft's strategy is the natural absorption mechanism. The Company is already making a significant contribution to the absorption of greenhouse gas emissions by forests by planting trees in the regions where it operates on an annual basis. From 2021 till 2023 Rosneft enterprises planted more than 26 million tree seedlings in the regions where they operate.

The Company is implementing the world's largest forest-climatic project. The complex of forestry measures assumes a cumulative potential for absorption of 10 million tons of CO2-equivalent. Rosneft's forest-climatic project should not only make a significant contribution to the absorption of greenhouse gases and help develop a methodological basis for building appropriate mathematical balance models, but also contribute to the formation of a regulatory framework for the carbon units (CU) market.

The Company pays special attention to the reproduction of aquatic biological resources. Group companies ensure the reproduction of young fish and their release into river systems. In 2023, the Company's subsidiaries released over 48 million fry.

Russian scientists have created an industrial sample of a unique bio-drug for cleaning shorelines and water areas of northern seas from oil and petroleum product spills as part of a project implemented by OOO Arctic Science Center (part of Rosneft's corporate research and development complex) and Innopraktika, a non-state development institute based at the Faculty of Biology of Lomonosov Moscow State University. The technology is based on the use of natural psychrophilic (cold-loving) microorganisms that use hydrocarbons as a source of nutrition.

In July 2012, Rosneft sent two scientific vessels to the northern seas for the first time to study the runoff winds blowing from Novaya Zemlya. This expedition launched the largest Arctic research in recent history. Over the next 12 years, Rosneft has already undertaken more than 50 complex expeditions, many of which are unique. Using high-tech domestic equipment, 90% of glaciers in the Russian Arctic have been studied. These studies have practical purposes, including the development of the Northern Sea Route and control of ice conditions at high latitudes

The Company is implementing projects to study and protect Arctic animals and birds, which are indicators of the sustainable state of the region's ecosystems. As part of this program, expeditions were arranged to study polar bears, Atlantic walrus, wild reindeer, Siberian sable and white gull, which are listed in the Red Books of various levels.

In 2023, Rosneft has developed a new program to study and conserve bioindicator species of the Arctic region. The planned research will take place from 2024 till 2027 in the north of the Krasnoyarsk Territory. During the expeditions, specialists from Russia's leading scientific organizations will for the first time conduct an aerial survey of polar bears in the Kara Sea, monitor wild reindeer and study the fish of the Yenisei River estuary, as well as build maps of the ecological sensitivity of the shores of the Yenisei Bay and the adjacent Kara Sea water area, checking nesting sites of valuable bird species.

Information on animal populations will allow the scientists to draw conclusions about the state of their habitats and develop measures to preserve the biodiversity of the Arctic region.

Rosneft patronizes polar bears in all the country's zoos and finances the construction of new enclosures to make the bears' living conditions as comfortable and close to their natural habitat as possible.

Social Responsibility

Rosneft implements social programs in all regions where it operates: it builds modern hospitals, sports complexes, ice arenas, schools and kindergartens.

The Company has agreements with local authorities on strategic cooperation. This primarily involves the development of social infrastructure. Large-scale projects are implemented, resulting in a complete change in the appearance of cities and settlements, giving local residents direct access to modern medical, educational, sports and recreational, housing and utilities services.

The Company's subsidiaries are often town-forming enterprises that undertake obligations to landscape streets and improve roads, build bridges, repair engineering and transportation systems, power and heat supply facilities, and replace equipment.

Rosneft implements dozens of projects related to support of healthcare and development of medicine. Significant funds are allocated for construction, capital repairs and reconstruction of healthcare institutions (hospitals, clinics, and outpatient facilities), improvement of their material and technical base, including acquisition of the latest models of medical and diagnostic equipment. Key projects in this area include the opening of a multidisciplinary medical center in Gelendzhik, a new building of a children's hospital in Saratov, and the creation of a comprehensive emergency response system for emergency medical care in the Far North conditions.

Providing support for sports activities is also one of the most important priorities of the social policy of Rosneft and its subsidiaries. The Company finances the construction of ice arenas, sports complexes and multi-purpose sports grounds in the regions where it operates.

The Company supports both amateur and professional sports. Rosneft owns the CSKA hockey club, finances the Arsenal soccer club in Tula, is the general sponsor of the Lada Sport Rosneft racing team, helps Russian sambo wrestlers and contributes to various regional sports development programs.

Rosneft takes active part in significant events and phenomena of Russian cultural life. The Company allocates funds for projects that define the cultural image of the country, influence the national identity and shape the society's understanding of high culture. Among the supported projects are the Boris Eifman Ballet, the Sretensky Monastery Choir, and the State Hermitage Museum. With the Company's support, three halls of the renovated exposition titled "Culture and Art of China" dedicated to the Qing period of the XVII-XIX centuries were opened there. In addition, a permanent exposition titled "Ancient Colonization of the Northern Black Sea Coast" is also open at the museum.

Rosneft is the general sponsor of the "Beliy Parokhod" (White Steamboat) children's music festival - a charitable project for children with hard fate. Talented children are trained in a unique summer vocal and choir school under the guidance of highly professional teachers in vocal, acting, choral singing, playing musical instruments and choreography, and then they participate in gala concerts at major concert venues in Russia.

Rosneft at the "Russia" International Exhibition and Forum

In 2023, the Company presented its key production and social achievements in the pavilion at the "Russia" International Exhibition and Forum organized under the decree of the President of the Russian Federation Vladimir Putin.

The Company's exposition became one of the centers of attraction for the guests of VDNKh - over 1.02 million people visited the Rosneft exhibition pavilion from November 4, 2023 till July 8, 2024.

Weekly thematic events were held in the Rosneft pavilion, which were dedicated to the Company's activities, its operations in the regions of the Russian Federation, environmental and scientific projects, the cultural and geographical diversity of our country, significant dates of federal importance and professional holidays.

During the eight months of the exhibition, Rosneft organized 138 thematic weeks/days, which included over 70 different speeches and presentations, as well as 159 lectures.

The pavilion's digital equipment and interactive exhibits allowed the visitors to get a detailed idea of the history of the oil industry and the Company, its prospects, scientific developments, social projects, as well as modern techniques of oil production. Separate sections of the exposition were dedicated to the prospects of oil industry development - the flagship Vostok Oil project, as well as Rosneft's scientific developments.