Rosneft – Russia’s largest oil producer – has today received director approval for its latest emissions reduction strategy: targeting net zero emissions by 2050.
Under the new “ROSNEFT-2030” model, the company will cut emissions by 5% by 2025 and 25% by 2030, with a methane intensity reduction to less than 0.2% also laid out in the new framework.
In a statement, the company said to deliver these targets it would be implementing “use of low-carbon power generation, zero routine flaring, usage of energy-saving technologies, carbon capture and storage technologies and use of natural forest offsets.”
Rosneft’s vehicle fleet will be transitioned to lower-carbon fuels, with the company also looking to produce and sell aviation fuels with a lower carbon footprint.
Commenting on the strategy’s approval, Rosneft CEO Igor Sechin said: “The board of directors approved [the] new strategy and laid the foundation for [the] company’s development for decades to come. [The] new strategy supports free cash flow growth, which is expected to more than double by 2030, facilitates sustainable growth of the company’s shareholder and investor value. Carbon reduction objectives confirm the company’s status as a responsible energy supplier and one of the leaders in energy transition in Russia.”
The strategy is also reportedly set to target hydrocarbon production of 330 million tonnes of oil equivalent per year. Growth will be primarily driven by the group’s flagship Vostok Oil project, as well as large-scale new projects including Russkoye, Yurubcheno-Tokhomskoye, Severo-Danilovskoye and Severo-Komsomolskoye fields. According to S&P Global Platts, this group of projects holds resources potentially representing around 44 billion barrels of crude oil, with Vostok alone set to produce two million barrels per day by 2030.
Gas projects Rospan, Kharampur and others will also contribute to overall growth.
“I am glad to contribute to the development of new strategy,” said Robert Dudley, chairman of the strategy and sustainable development committee of Rosneft’s board of directors. “The new goal to achieve “Net Zero” by 2050 is an ambition that reflects the Company’s deep sense of responsibility as a global citizen. Rosneft-2030 Strategy balances equitable sustainability with shareholder return, and positions Rosneft as a resilient industry leader”.