Category: English Language

Source: Rosneft – An important disclaimer is at the bottom of this article.

At the XXVII St. Petersburg International Economic Forum, Rosneft and the Ministry of Entrepreneurship, Trade and Tourism of the Voronezh Oblast signed a Memorandum of Cooperation to promote domestic tourism.

According to the document, the parties plan to implement measures aimed at meeting the demand for domestic automobile tourism, promoting the tourist potential of the region, and improving the comfort of automobile tourists through development of motorway service and Rosneft retail network infrastructure.

Earlier, Rosneft and the Voronezh Tourist Information Center (TIC) presented a joint project to develop automobile tourism including a tourist route through the motorway service facilities available at Rosneft filling stations. The project covers four routes for automobile travel in Voronezh and across the Voronezh Oblast in the following directions: North, South, West, and East. The routes include popular tourist destinations located both in Voronezh and nearby federal highways such as M-4 Don.

Rosneft retail network in the Voronezh Oblast consists of 80 filling stations. Of these, 15 are located on the M4 highway to Voronezh, the main regional transportation artery used by residents of Central Russia to travel to the seaside.

Development of the motorway service facilities and improvement of the customer services provided at Rosneft filling stations is one of the Company priorities.
This contributes to the development of domestic automobile tourism, as the Company retail network is not only the largest in Russia in terms of geographical coverage and number of filling stations (around 3,000 stations), but also one of the leaders in terms of fuel recognition and quality.

Rosneft undertakes a number of actions aimed at creating comfortable conditions for automobile travelers. In addition to the Voronezh Oblast, the Company has so far presented joint tourist routes running through the Rosneft filling stations in the Republic of Karelia, as well as the Tula, Arkhangelsk, and Ulyanovsk Regions, as well as key routes between Moscow and Krasnaya Polyana, and between the two capitals.
On top of that, the Company has previously signed memoranda of cooperation to promote domestic tourism with the Moscow City Tourism Committee, the Government of the Samara Oblast, the Ministry of culture of the Arkhangelsk Oblast, the Altai Territory Department for Tourism and Resort Development, Tourism Agencies of the Ulyanovsk Oblast and the Republic of Udmurtia, and the Republic of Bashkortostan.

Rosneft
Information and Advertising Department
June 7, 2024

These materials contain forward-looking statements regarding future events and expectations. All statements contained in these materials that do not relate to matters of historical fact constitute forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any expected results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligation to update the data contained herein to reflect actual performance or results, changes in underlying assumptions or factors affecting the forward-looking statements.

Keywords: Social News 2024

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

The importance of nuclear power, which is a natural complement to fossil fuels, is growing, said Igor Sechin, Chief Executive Officer of Rosneft, at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

“However, against the backdrop of growing consumption, all types of generation, including nuclear, are experiencing a rebirth. This is clearly illustrated by the price of uranium fuel, which has more than tripled over the past seven years,” Igor Sechin noted.

He recalled that back in the 1930s the idea of thermonuclear fusion was formulated, and many famous scientists, including Nobel laureates Hans Bethe, Peter Kapitsa, Igor Tamm and later Andrei Sakharov, sought to reproduce and control this process. In theory, fusion can generate almost four million times more energy than burning oil or coal, Igor Sechin said. However, in order to sustain a fusion reaction and sustainably generate energy, it is still necessary to improve methods of plasma confinement, ensure its stability, and increase efficiency.

The CEO of Rosneft noted that a few years ago the nuclear power industry was in a deep crisis due to the decline in activity in the industry and such large companies as Westinghouse and Areva had to go through restructuring and ownership changes. However, the situation then began to change. “Over the past five years, global annual investments in nuclear energy have increased by 50%, reaching 70 billion dollars last year. China has become one of the leaders in nuclear power today. Over the past ten years, the installed capacity of nuclear generation in this country has increased fivefold and approached 60 GW. China plans to complete the construction of 32 more reactors in the coming years,” he said.

At the same time, Sechin said it is important that China relies on the latest technological achievements of the leading nuclear powers – Russia, the United States and France – to develop its nuclear industry.

He noted that Russia has many years of experience in building nuclear power plants. The cost of the most modern Russian VVER-1200 reactor is much lower than the American AP-1000. Today such reactors are already operating in Russia and are planned to be commissioned in friendly countries.

At the same time, Sechin noted, the resource base is of particular importance. Today, just seven countries, including the Russian Federation, control more than 90% of the world’s uranium fuel production and about 70% of the world’s uranium reserves.

“Today, Russia is the only country in the world that has expertise in the entire technological chain of the nuclear fuel cycle, from uranium mining to nuclear fuel disposal. In total, 80 nuclear reactors have been built in the world using Russian technologies,” he said

Russia has also commissioned the world’s only floating nuclear power plant of small capacity. Currently, four more nuclear power plants are under construction.

Also, a sodium-cooled nuclear reactor belonging to the category of fast neutron reactors, the BN-800, has been successfully operating in our country for ten years, another latest-generation fast neutron reactor, the BN-1200, is under construction.

“Reactors of this type take into account the most advanced technical solutions, including the enlargement of fuel elements, the use of uranium-plutonium mixed fuel, as well as well as new structural steels with increased radiation resistance, which provide deeper fuel burnup and higher efficiency.  In particular, the efficiency of electricity generation increases by 20-25%, even without taking into account the significantly higher efficiency of fuel use,” said the CEO of Rosneft

Investments in the nuclear sector are expected to continue growing According to the IEA forecast, by 2050 the global installed nuclear generation capacity will grow by nearly 60% to reach 650 GW. “I believe this estimate is understated. Just a few weeks ago, the US President set a goal to quadruple the country’s nuclear generation capacity to 400 GW,” Sechin noted.

The CEO of Rosneft expects further growth of investments in the nuclear sector: new technologies, such as small modular reactors, are now attracting increased attention of investors. While such reactors are more mobile, their implementation also requires investments in the development of power grids. In addition, special attention should be paid to their safety and security against terrorist threats.

“Rolls-Royce recently won a tender for the construction of such reactors in the UK. Experts note that these reactors have a number of features. One of them is described in Ecclesiastes: “What is crooked cannot be straightened; what is lacking cannot be counted.” None of these reactors have been put into operation yet,” Sechin explained.

The proposed smaller reactors will require no less effort and cost, including those related to fuel utilization and safety, than existing larger reactors.

“Finally, nuclear energy is, in any case, a dual-use technology. The issue of non-proliferation of nuclear weapons must be given the utmost attention, as it is precisely because of this that the Middle East conflict is currently intensifying. It is crucial to consider whether we want further expansion of the nuclear club,” Igor Sechin concluded.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Synthesis of conventional and alternative energy sources is currently the optimal solution for the development of the global energy sector, said Igor Sechin, Chief Executive Officer of Rosneft, at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

According to the CEO, the search for new energy sources never stops, and today a number of promising technologies are being actively developed. However, their full-fledged implementation is still far away, as modern technological solutions in this area are too expensive and inferior to traditional energy sources in a number of parameters.

“For many years, great hopes have been placed on the use of hydrogen. However, low-carbon hydrogen still accounts for less than 1% of all production volumes. According to the Deloitte consulting company, the introduction of “green” hydrogen fuel will cost almost 10 trillion dollars by 2050,” Igor Sechin noted, adding that the cost of green hydrogen varies from 200 to 400 dollars per barrel of oil equivalent, which, under current conditions, makes it uncompetitive with oil and gas.

He also emphasized that the use of cheaper methods of hydrogen production does not allow to reduce the carbon footprint, as the production of so-called “gray” hydrogen exceeds the emissions arising from the full cycle of production and use of gasoline.

The introduction of space solar energy is also costly, Igor Sechin emphasized. The CEO noted that the cost of a satellite capable of converting solar energy into electricity in space exceeds 30 billion euros, and there is still no technology that would allow to transmit huge amounts of energy to Earth from space.

Rosneft’s CEO also drew attention to the search for alternatives in energy storage. “Alternative types of batteries are emerging that already offer certain advantages but are not yet ready for widespread adoption. For example, sodium-ion batteries reduce charging time by 75% and perform better in low-temperature conditions, but they lag significantly behind existing lithium-ion counterparts in terms of energy density and lifespan,” Igor Sechin said.

“As we can see, full-scale implementation of all these technologies is still a long way off. Therefore, today the optimal solution is a synthesis of conventional and alternative energy sources,” summarized the CEO of Rosneft.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Global energy consumption will grow by a quarter in the next 25 years, and the key driver of demand growth will be developing countries, said Igor Sechin, Chief Executive Officer of Rosneft, at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

“By 2050, with energy consumption in Africa, India, and Southeast Asia at the level of China’s population today, the combined additional consumption will amount to about 50 million barrels of oil equivalent per day. This represents a quarter of the current global energy demand,” the CEO said during his keynote address.

He noted that developing countries are becoming one of the key drivers of energy consumption growth. One of the main reasons for this is demography. In the next 25 years, the population of African and Asia-Pacific countries will grow by a total of 1.4 billion people, which will provide almost the entire world population growth.

In addition to positive demographic dynamics, the CEO of Rosneft named urbanization in Asia and Africa as one of the reasons for the growth in energy demand. According to the IEA’s estimate, which was cited by Rosneft’s CEO, in the next 25 years the number of city dwellers in these countries will increase by more than 1.6 billion people.

Igor Sechin called the growth of electricity consumption a key challenge. Thus, in his opinion, already in 2025, investments in this sector will exceed investments in fossil fuels by 50%. “Indeed, over the past 15 years, electricity consumption has grown at a faster pace, and according to IEA projections, electricity generation is set to nearly double over the next 25 years,” he added.

Asia-Pacific countries will also make the largest contribution to this growth, accounting for 60% of the increase in consumption.

“This trend is particularly evident in India, where peak demand on the power system has risen by nearly 70% over the past decade,” Sechin concluded.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

The digital revolution is opening a new era in the development of the oil and gas industry, Rosneft CEO Igor Sechin said at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

“The digital revolution is opening a new era in the development of the oil and gas industry, including the impact on oil exploration, production, refining, data storage and cybersecurity of the industry,” Sechin said during his keynote speech.

Sechin cited expert estimates that the market for artificial intelligence technologies in the oil and gas industry will grow by 83% by 2030. At the moment, 49% of this market is in the refining segment. It is expected that the introduction of artificial intelligence in the upstream segment will grow by 14% per year over the next five years, said the CEO of Rosneft.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

The energy sector is one of the main drivers of the new technological revolution, said Igor Sechin, Chief Executive Officer of Rosneft, at the Energy Panel at the XXVIII St. Petersburg International Economic Forum.

Delivering a keynote speech, he noted that the digital revolution with the application of artificial intelligence and work with big data should become the basis for labor productivity growth.

Investment bank Goldman Sachs estimates that large-scale implementation of high technologies will increase labor productivity by 1.5 p.p. for developed countries and by 1 p.p. for developing countries within 10 years. “However, the development of advanced technologies requires substantial natural resources, as well as large-scale investments in infrastructure and human capital. This, in turn, means a multiple increase in energy consumption,” Rosneft CEO noted.

“Undoubtedly, one of the main driving forces of the new technological revolution is the energy sector,” Sechin said. He recalled that the use of artificial intelligence on the basis of large data processing centers is a highly energy-intensive process. “According to the International Energy Agency, the electricity demand of a single 100 megawatt data center today is comparable to the consumption of 100,000 households. In the future, this demand could increase by several tens of times,” the Rosneft CEO added.

Such centers, according to Sechin, will contribute more to the growth of global electricity demand than heavy industry or heat supply. “According to forecasts , by 2030 their electricity consumption will more than double, reaching one thousand terawatt-hours, which is comparable to Japan’s current consumption,” said the CEO of Rosneft.

Igor Sechin also cited the development of the cryptocurrency market as an example of the impact of digitalization on the global energy system. According to him, in less than ten years they have turned into an independent industry, which today consumes resources on a par with entire countries. For example, the energy consumption of the entire bitcoin network as of May 2025 has already exceeded the level of electricity consumption in Poland.

Department of Information and Advertising
Rosneft Oil Company
June 21, 2025

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Source: Rosneft – An important disclaimer is at the bottom of this article.

Rosneft and the Republic of Sakha (Yakutia) signed an Agreement on financing the construction of a cultural center in the Republic of Sakha (Yakutia).

The documents were inked by Igor Sechin, Chief Executive Officer of Rosneft, and Aysen Nikolaev, Head of the Republic of Sakha.

In accordance with the arrangements reached, a Multifunctional Cultural Center will be built in the village of Tas-Yuryakh, Mirny District, using the Company’s funds. The complex will include a village culture center, a library, a post office, an assembly hall and a gym.

In 2023, Taas-Yuryakh Neftegazodobycha (part of Rosneft), supported the establishment of a Growth Point center for industry-specific and digital education at the school of Tas-Yuryakh village – the rooms for robotics, 3D modeling, and the school press center were renovated. The school was provided with a TV studio, a language laboratory, and a local history museum that features an exhibition and educational exposition.

Rosneft pays great attention to supporting educational, social, cultural and enlightenment projects in the Republic. According to the Cooperation Agreement signed between the Company and the Government of the region in 2015, major joint projects are being implemented.

In 2022, in the year of the 100th anniversary of the Republic of Sakha, Rosneft opened the Small Academy of Sciences in the village of Chapaevo, Khangalassky District, which has become a kind of hub of research and project activities for schoolchildren throughout the Far Eastern region. Children from both big cities and remote areas of the Republic study in the new 7,000 m² building. The facility functions according to the model of the Sirius Educational Center.

In addition, the Company allocated funds in 2023 to establish a Full Cycle Oil and Gas Process Factory training center on the basis of the Regional Technical College in the town of Mirny. The Center is scheduled to be opened this year.

Department of Information and Advertising
Rosneft Oil Company
September 4, 2024

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Keywords: Social News 2024

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

Rosneft and the Government of the Khabarovsk Territory signed a long-term Cooperation Agreement within the 9th Eastern Economic Forum.

The document was signed by Igor Sechin, Rosneft CEO, and Dmitry Demeshin, Acting Governor of the Khabarovsk Territory.

The agreement provides for cooperation between the parties in the implementation of industrial, financial and social programs to improve living standards in the Khabarovsk Territory.

Under the Agreement, Rosneft will support the development of the region’s industrial and scientific potential. In particular, the Company plans to expand cooperation with local enterprises. The Agreement implementation will contribute to the improvement of investment attractiveness as well as innovation and educational activities efficiency in the Khabarovsk Territory.

Under the document, Rosneft and the Territory Government plan to develop and implement environmental protection and educational projects together.

In particular, the parties agreed to develop training and advanced training system for the Khabarovsk Territory workers and engineers.

Department of Information and Advertising
Rosneft Oil Company
September 4, 2024

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Keywords: Social News 2024

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

As part of the 9th Eastern Economic Forum, Rosneft and RusHydro signed a Letter of Intent on cooperation for the development of charging infrastructure for electric vehicles.

The agreement proposes installation of charging stations for electric vehicles at Rosneft’s gas stations in Russian regions, as well as cooperation for construction of gas stations and charging complexes as part of multifunctional road service zones on toll roads. All electric modules will comply with the current standards and will support the fast charging function.

Rosneft’s retail network currently operates 80 electric charging stations at its gas stations in 12 regions of Russia stretching from St. Petersburg to the Zabaikalsky Territory. Most of the stations support the fast charging function – they can charge the battery of an electric vehicle up to 80% in just 20 minutes.

The agreement with RusHydro was signed as a follow-up to the commitments that the parties made in 2021.

The brand of Rosneft filling stations is one of the leaders in terms of recognition and quality of the fuel nationwide. The geography of Rosneft’s retail business covers 61 regions of Russia. The network of the Company’s filling stations includes almost 3,000 sites.

Expanding the range of customer services is one of the key areas of Rosneft’s retail business. Infrastructure development will allow drivers to charge electric vehicles at the widespread network of Rosneft gas stations across Russia. The Company will continue to expand the geography of charging stations in line with demand forecasts and the development of the electric vehicles market.

Department of Information and Advertising
Rosneft Oil Company
September 4, 2024

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Keywords: Social News 2024

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

Source: Rosneft – An important disclaimer is at the bottom of this article.

• H1 2024 HYDROCARBON PRODUCTION AMOUNTED TO 131.3 MLN TOE
• H1 2024 LIQUID HYDROCARBON PRODUCTION EQUALED 92.8 MLN TONS
• H1 2024 GAS PRODUCTION TOTALLED 46.8 BCM
• H1 2024 EBITDA AMOUNTED TO RUB 1,650 BLN
• H1 2024 NET INCOME ATTRIBUTABLE TO ROSNEFT SHAREHOLDERS AMOUNTED TO RUB 773 BLN
• H1 2024 FREE CASH FLOW AMOUNTED TO RUB 700 BLN
• NET DEBT/EBITDA AT THE END OF H1 2024 WAS LESS THAN 1X
• H1 2024 UNIT LIFTING COSTS AMOUNTED TO $2.7/BOE

Rosneft Oil Company (hereinafter – Rosneft, the Company) announces its results for H1 2024, prepared in accordance with the International Financial Reporting Standards (IFRS).

* Adjusted for royalty effect in the Sakhalin-1 project.
** Revised due to completion of the 2022–2023 acquisition price allocation in 2023.

Operating performance

Exploration and production

H1 2024 liquid hydrocarbons production amounted to 92.8 mln tons (3,796 th. bpd). The indicator performance is primarily driven by the production cap in compliance with the decisions of the Russian Government.

H1 2024 gas production amounted to 46.8 bcm (1,566 th. boepd). Greenfield projects in the Yamal-Nenets Autonomous District commissioned in 2022 account for over a third of the Company’s gas production.

As a result, the Company’s H1 2024 hydrocarbon production amounted to 131.3 mln toe (5,362 th. boepd).

H1 2024 production drilling footage exceeded 5.9 mln meters. Rosneft commissioned over 1.4 th. new wells, 71% of which were horizontal.

In H1 2024, Rosneft conducted 1.2 th. sq. km of 2D seismics and 4.7 th. sq. km of 3D seismics onshore Russia. The Company completed testing of 15 exploratory wells with a success rate of 87%.

Vostok Oil Project

As part of the flagship Vostok Oil project, in H1 2024 the Company completed 0.7 th. linear km of 2D seismics and 0.6 th. sq. km of 3D seismics. Rosneft carried out successful testing of one well, completed drilling of two wells with two more wells being tested.

Pilot development of the Payakha, the Ichemminskoye and the Baikalovskoye fields is in progress: production drilling footage amounted to 42 th. meters, six production wells were completed in H1 2024.

Work is underway at the ‘Vankor – Payakha – Sever Bay’ trunk oil pipeline. As of the end of H1 2024, over 65 th. piles had been mounted; over 280 km of pipeline had been welded, including 78 km long two-piped section. The Company completed the main pipeline crossing across the Yenisei River is finalizing the trench backfilling, and has started bottom dredging for laying a backup pipeline.

The Company has completed most of activities on two cargo berths and one berth for the port fleet at the Sever Bay Port terminal, continues construction of an oil loading berth, and is working on construction of a crude oil delivery and acceptance point. Construction of logistics infrastructure, building of hydraulic structures, shore reinforcement, expansion of coastal and berthing infrastructure is underway.

The Company completed winter-spring cargo delivery, and over 830 th. tons of property and equipment were delivered to the project’s production facilities via the Northern sea route and winter roads. Compared to the previous period, the volume of transported cargo increased by 32%.

Refining

H1 2024 refining volume in Russia amounted to 40.9 mln tons.

The Company has been consistently developing domestic technologies and import substitution. In particular, Rosneft provides Company refineries with proprietary catalysts, which are essential for production of high-quality motor fuel. In H1 2024, Rosneft produced 1,130 tons of catalysts for hydrotreatment of diesel fuel and gasoline fractions, as well as protective layer catalysts. Rosneft subsidiaries also produced over 100 tons of gasoline reforming catalysts and 185 tons of catalysts for hydrogen production, petrochemicals and adsorbents. 630 tons of coked catalysts for hydrotreatment of diesel fuel were regenerated.

Sustainable supply of high-quality motor fuel to Russian consumers is one of Rosneft’s key priorities. In H1 2024, the Company sold 21.6 mln tons of petroleum products on the domestic market, including 6.4 mln tons of gasoline and 8.8 mln tons of diesel fuel.

The Company is an active participant of trading activities at the St. Petersburg International Mercantile Exchange (SPIMEX). In H1 2024, Rosneft sold 5.0 mln tons of gasoline and diesel fuel on the exchange, which is twice the required volume. The Company’s share in the total volume of exchange sales of gasoline and diesel fuel amounted to 38%.

Financial performance

Operating performance and the current macroeconomic environment combined with management decisions determined the trend of the Company’s key financial indicators.

In H1 2024, the Company’s revenue¹ amounted to RUB 5,174 bln, representing an increase of 33.4% year-on-year. EBITDA reached RUB 1,650 bln, which is 17.8% higher year-on-year. EBITDA margin amounted to 32%. At the end of H1 2024, the Net Debt/EBITDA ratio was 0.96x.

H1 2024 unit lifting costs amounted to USD 2.7/boe.

H1 2024 net income attributable to Rosneft shareholders increased to RUB 773 bln, a growth of 26.9%, which was mainly driven by the EBITDA growth.

H1 2024 capital expenditure amounted to RUB 696 bln, which was 16.2% higher year-on-year and was due to the scheduled implementation of activities in the Upstream segment. At the same time, Rosneft’s free cash flow² in the reporting period reached RUB 700 bln, which is 61.3% higher than in H1 2023.

The Company is taking measures to reduce its ruble-denominated debt burden against the backdrop of high interest rates.

In addition to the increase in interest rates, the outstripping growth of tariffs of natural monopolies negatively affects the Company’s performance. In particular, since 2020 increase in tariffs for cargo transportation by rail has exceeded the inflation rate by 17%.

ESG

In the reporting period, the Company continued to implement measures to achieve sustainable development goals under the ‘Rosneft-2030: Reliable Energy and Global Energy Transition’ strategy.

Rosneft applies advanced technologies and state-of-the-art production methods to create a safe working environment and minimize the risk of occupational injuries and occupational illness. In H1 2024, while the overall LTIF (Lost Time Injury Frequency Rate) remained unchanged, the Lost Work Injury Frequency Rate (LWIS) dropped by 34%.

In H1 2024, there were no gas, oil and water shows (release of oil, gas or water to the surface) during drilling operations at Company facilities. As part of efforts to minimize oil and petroleum product spills, measures were taken to replace field pipelines.

In H1 2024, the Company processed more than 30 th. tons of legacy oily waste under the program on liquidation of environmental legacy.

Active implementation of circular economy principles is one of the Company’s strategic development areas. In April 2024, Rosneft headed the waste management rating of RAEX, Russia’s largest non-credit rating agency, of 160 Russian companies. The Company’s leadership was acknowledged on the basis of the quality of corporate waste management policies and programs, gross and unit indicators of waste generation, as well as the share of waste reuse.

Igor Sechin, Chairman of the Management Board and Chief Executive Officer of Rosneft, said:

“Despite external pressure and challenges including production restrictions under the OPEC+ agreement, outstripping growth of tariffs of natural monopolies, increasing tax burden and interest rates, the Company continues to achieve strong financial results thanks to its high level of operational efficiency.

In the first half of 2024, Rosneft’s key financial indicators – revenue, EBITDA, net income, cash flow – demonstrated stability. Unit lifting costs remained at a low level of USD 2.7/boe. As the country’s largest taxpayer, Rosneft paid RUB 2.8 trln in taxes in the first half of 2024.

The ongoing growth of the tax burden has a negative impact on the oil industry. Its high level is confirmed by the calculations based on the data of Russia’s Federal Tax Service and Ministry of Finance – for 2019-2023, the tax burden in the oil industry amounted to 75%. By comparison, the burden in other industries for the same period is much lower: in the banking sector – 27%, in mining and metallurgy – 35%, in mining of diamonds and precious metals – 31%, in the gas industry – 62%.

Such a level of tax burden undermines the very economic model of the industry and violates the rights of investors, including individual shareholders, of which Rosneft has over 1.3 mln people.

In August 2024, for the benefit of shareholders and in full compliance with the dividend policy, the Company completed payment of final dividends approved by the Annual general shareholder meeting totaling over RUB 307 bln (29.01 per share).The total amount of dividends for 2023 is RUB 59.78 rubles per share or RUB 634 bln, which is a record high in the Company’s history”.

¹ Includes revenues from sales and equity share in profits of affiliates and joint ventures.
² Adjustment for prepayments under long-term oil supply contracts, including accrued interest payments thereon, net change in operations of subsidiary banks, and operations with trading securities.

Department of Information and Advertising
Rosneft Oil Company
August 29, 2024

These materials contain statements regarding future events and expectations that are forward-looking estimates. Any statement in these materials that is not historical information is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by these forward-looking statements. We assume no obligation to adjust the data contained herein to reflect actual results, changes in underlying assumptions or factors affecting the forward-looking statements.

Please note; this information is the raw content received directly from the information source. This is exactly what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.