Rosneft and Baker Hughes agree on carbon management cooperation
Rosneft and Baker Hughes have signed a Carbon Management Cooperation Agreement at the XXIV St. Petersburg International Economic Forum.
This Agreement confirms the mutual aspiration of Rosneft and Baker Hughes for the joint development, testing and implementation of advanced carbon management technology solutions.
The companies will assess the potential of greenhouse gases detection, measurement, assessment and emission reduction technologies and equipment application with a focus on methane emissions at Rosneft production facilities.
The implementation of Baker Hughes’ low carbon technologies for drilling, oilfield services, artificial intelligence digital solutions and energy efficiency application opportunities are expected to contribute to Rosneft’s overall energy efficiency improvements. The parties will also consider alternative energy sources, including hydrogen opportunities.
Joint advanced low carbon developments and technologies may also be applied as part of the Vostok Oil project implementation in the north of Krasnoyarsk Territory.
The Agreement includes a number of actions for the practical application of modern technologies. These include exchange of carbon management technical information and sharing of engineering experience, holding joint events and carbon management workshops and conducting technology pilot tests at the Company operating facilities.
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Rosneft has been one of the first Russian members of UN Global Contract, the largest sustainable development initiative, for more than ten years. In 2018 the Company has confirmed its UN sustainable development goals commitment and specified "climate change combat" as its strategic objective, which will be met in the course of Rosneft main activities.
Rosneft is the first Russian company, which presented a comprehensive Carbon Management Plan - 2035 with clear targets for greenhouse gases emission reduction. The plan includes:
- Prevention of direct and indirect greenhouse gases emissions to the amount 20 mln tons of CO2 equivalent;
- 30% reduction of upstream direct and indirect emissions intensity;
- Achievement of methane emissions intensity below 0.25%;
- Zero routine flaring of associated petroleum gas.
The global investment community, which views socially responsible investing as a long-term trend, commended the Company's activities. The FTSE Russell division of the London Stock Exchange confirmed Rosneft's inclusion in the international FTSE4Good Index Series. Rosneft is recognized as the best Russian oil and gas company in a number of international ESG ratings – Refinitiv, Bloomberg. Along with that in April 2021 Sustainalytics international agency improved the Company positions in its ratings twice. Rosneft has become the best of the Russian oil and gas companies with the score of 33.9.
Baker Hughes is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and with operations in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet.
In 2019, Baker Hughes was one of the first in the industry to make a commitment to reduce CO2 equivalent emissions 50 percent by 2030 and achieve net-zero emissions equivalent by 2050. As a part of this commitment, Baker Hughes supports customers’ efforts to reduce the carbon footprint of their operations by continuously investing in its portfolio of lower carbon products and services.
Rosneft Information Division
June 4, 2021
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