Orenburgneft Cuts Diesel Generation Costs at Oil Production Facilities 13-Fold

Orenburgneft, Rosneft Oil Company’s upstream subsidiary, has reduced the use of diesel generation* at its in-house oil production facilities. Since 2018, the number of diesel power plants has been reduced from 33 to 2 units, with the annual cost falling 13-fold over this period to 20 million roubles.

Improving the efficiency of the Company’s production assets is a key element of the Rosneft 2022 Strategy. The Company works systematically to rationalise resources use and reduce energy consumption, optimising electrical loads and thermal processes. Orenburgneft’s energy management system has been certified as compliant with the ISO 50001:2018 international standard, as well as the requirements of GOST R ISO 50001:2012.

Significant economic benefits have been achieved through the construction of power grid infrastructure at oil production facilities. Over three years, Orenburgneft specialists have built about 300 km of 6kV transmission lines and more than 200 transformer substations. Temporary power schemes for wells in hard-to-reach areas and efficient planning have also helped to reduce the use of diesel generation at the Company’s oil production facilities.

_{*The high cost of diesel-generated electricity (5-6 times that of the electricity grid) makes it uneconomical to use. The company is systematically reducing the use of diesel power plants in favour of an efficient and environmentally friendly power supply as part of the Rosneft 2022 Strategy.}

Rosneft
Information Division
April 7, 2021