Energy efficiency

The 2018 Power Conservation and Energy Efficiency Improvement Program was developed in December 2017Order No 415 dated December 22, 2017..

The following formation principles were applied in the development of the program:

  • Implementation of "Lean production" policy based on introduction of measures with payoff period of 3-5 years;
  • Development of measures intended to decrease specific energy costs per unit of production, oil containing fluid treatment and formation pressure maintenance in the Upstream segment, raw materials refining in the Downstream segment and decrease of annual power resources consumption in the segment of Service and other assets;
  • Engagement of all personnel of enterprises in the process of power resources conservation;
  • Engagement of secondary power resources and production waste (APG, spent oil waste etc.) in the production process.

This program is an extension of the Power conservation and Energy Efficiency Improvement Program successfully implemented in Zarubezhneft JSC Group of Companies for 2017. The main goal of developing and implementing a program for 2018 - is decreasing the self-cost of commercial products in production business-segments of the Group of companies and as a consequence - increase of competitive ability at domestic and world markets.

The program contemplates decrease of specific power resources costs for production of oil-containing fluid (OCF) volume in the oil producing subsidiaries of the Russian segment by 4% compared to the level of 2015. JV “Vietsovpetro” and oil refining enterprises of the foreign segment also participated in implementing the Zarubezhneft JSC Group of Companies' program: Brod Refinery A.D. and Modriča Motor Oil A.D.. The target milestones of the 2018 Energy Conservation Program include the development and integration of new measures (along with the operation of the measures integrated in 2015-2017) accounting for the peculiarities of the segmental activities division, the organizational structure and the specifics of the Zarubezhneft Group of Companies’ as a whole.

The energy resource saving activities and program measures introduced in all Zarubezhneft Group’s subsidiaries during the year under review made it possible to reduce specific energy consumption for floating oil production to the level of 2015 in the Upstream segment, to stabilize specific energy consumption for refining in the Downstream segment, and, thus, to increase energy saving indicators of each company separately and of the entire Group.

In 2018, eighty three measures were introduces, three measures were withdrawn from implementation due to production necessity (reconstruction of the building of the subsidiary company VNIIneft JSC), one measure is currently ongoing.

Cumulative economic benefit from the energy saving program implemented in 2017 in Zarubezhneft Group of Companies was equal to 1,132 MM RUB or 36 168 MTOE, including:

  • saving in the Russian segment was equal to 942.6 MM RUB (27 472 MTOE);
  • JV “Vietsovpetro” – 99.1 MM RUB (4 815 MTOE);
  • Brod Oil Refinery A.D. and Modriča Motor Oil Plant A.D. – 90.1 MM RUB (3 881 MTOE).