Post on 15-Oct-2020
Rosneft – the Leader of the Russian Oil Industry
Post-IPO Dynamics (2006-2011)
Reserve replacement Well above the industry average Discovery of major fields in East Siberia
187%
Output growth Crude oil output CAGR
+8%
Cost control Reduction of lifting costs per barrel in real terms -25%
Sustainable dividend growth Annual dividend increase
+20%
Debt reduction Reduction of Net Debt to EBITDA ratio from 1.8x to 0.7x -60%
Implementation of flagship projects Launch of the Vankor field Effective development of the Yuganskneftegaz fields
1
1
1.5
2
2.5
5 10 15
Among Global Energy Leaders
Reserves (SEC), bln boe
Production, mln boe per day
2
Production, mln bbls per day
Reserves (SEC), bln bbls
Hydrocarbons Crude oil
22.0
7.3
14.5
17.1
13.6
19.2
22%
29%25% 29% 31%
24%
2006 2007 2008 2009 2010 2011
Financial Results since IPO
3
Adjusted net income, USD bln
3.5
6.5
10.5
6.5
10.4
2006 2007 2008 2009 2010 2011
12.5
EBITDA (USD bln) and EBITDA margin (%)
-1.8
1.9
5.6
3.4
5.8
2006 2007 2008 2009 2010 2011
Financial Results since IPO
2.3
4
Free Cash Flow, USD bln Net Debt (USD bln) and Net Debt to EBITDA
13.3
26.3
21.3
18.5
13.7
1.8
1.8
1.21.4
0.7
2006 2007 2008 2009 2010 2011
15.9
0.7
Strategic Vision
Rosneft – global energy company providing consistently high returns to shareholders through:
increased efficiency
development and application of innovative technologies
sustainable growth
5
Key Priorities
6
2 Development of gas business
1 Effective development of the existing reserves
3 Conversion of resources into proved reserves, including early start of full-scale offshore exploration
4 Access to technological and managerial expertise through participation in international projects
5 Refinery upgrades to comply with State regulations for motor fuel and development of petrochemical business
6 Development of marketing segment
7 Introduction of a modern management model with special focus on HSE and innovations
Proved Probable Possible Resources Total
Strong Reserve Base
bln boe as at December 31, 2011 (PRMS)
Reserve life, years
23.4 23.4
25
35.2
37
11.7
44.8
48
9.7
251
266
206
251
7
2.5 3.0
3.7
Effective Development of the Existing Reserves Sustainable Hydrocarbon Production Growth
2020 2015 2010
Gas projects
Existing oil assets
Exploration projects and acquisitions
Production, mln boe per day
Note: the output forecast assumes oil price of $90 per barrel in real terms and a favorable tax regime.
+4% CAGR
8
1
Effective Development of the Existing Reserves Production Growth Until 2020 is Secured by Existing Reserves
Priobskoye
Kharampur
Prirazlomnoye
Vankor
Malobalykskoye
Mamontovskoye
Kynsko-Chaselskaya group
Komsomolskoye
Verknechonskoye
Tarasovskoye
Yurubcheno-Tokhomskoye
1.0
3.0
0.7
1.0 1.0
0.1
0.1
0.3
0.3
Developed
3.3
Undeveloped
2.5 0.9
0.8 0.5
0.4 0.2 0.3
0.3 0.1
Proved reserves, bln boe
of total proved reserves of Rosneft 72%
7.5 bln boe
9.3 bln boe
9
1
+
Moscow Vankor
Vankor: Unique Experience in Implementing a Large-Scale Project
Proved reserves 1.8 bln boe 3P reserves 4.1 bln boe Unique flow rates 3,500 bpd Extremely tight schedule in a harsh climate (-49 F during winter) 6 years from obtaining the license Advanced drilling, construction, environmental protection technologies Investments USD 8 per bbl of accumulated production Tax incentives Special export duty rate, mineral extraction tax holidays
70
255300
360
545590
2009 2010 2011 2012 2013 2014
Hydrocarbon output ‘000 boe per day
10
2 Development of Gas Business
Share of gas in reserves and production
Share of gas in proved reserves
21%
Share of gas in production
8%
2010 2020
Gas output, bcm
45-55
12
Natural gas Kharampur and Kynsko-Chaselskaya group
Associated petroleum gas
11
3 Conversion of Resources into Proved Reserves
Arctic region
East Siberia
Russia’s southern Seas
206 bln boe
92%
Converting the resource base into proved reserves will ensure production growth beyond 2020
12
Far East of Russia
Other
3 Currently operating 29 offshore projects Total recoverable resources – 190 bn boe 20 new licence applications filed Total recoverable resources for prospective blocks – 212 bn boe Over 80% of resources are located in the Arctic and sub-Arctic
Differentiated Mineral Extraction Tax rates Zero crude export duty Guaranteed fiscal regime stability Other tax benefits
Securing Large Scale Offshore Presence
Fedynskiy
Perseevskiy
North-Karskiy
West-Prinovozemelskiy
East- Prinovozemelskiy 1, 2, 3
Ust- Olenekskiy
Ust-Lenskiy
Medynsko- Varandeiskiy
South-Russkiy
Partner
Partner
Partner
Anisinsko- Novosibirskiy
East-Sibirskiy South-
Chukotskiy
North-Vrangelevskiy-1
North-Vrangelevskiy-2
Magadan-2 Magadan-3
Kaygansko-Vasyukanskiy
Аstrakhan Sea-Nekrasovskiy North Chaivo Sakhalin-1
Partner
Gudautskiy South-Chernomorskiy
Tuapse Trough
West- Chernomorskiy
Temryuksko- Akhtarskiy
Kurganskiy
Partner
Partner
Western Arctic
Southern Seas
Easterm Arctic and the Sea of
Okhotsk 7.1 16
10.9 11
26.0 167
14.8 23
2.4 10
1.2 2
22.4 64
9.7 47
9.1 141
48.3 264
32.8 46
22.4 69
5.4 73
Magadan-1 6.3 19
2.8 11 7.5 17
Lisyanskiy 3.2 35
Kashevarovskiy 0.8 25
0.9 2
3.7 7
0.2 0.2
0.1 5
0.1 1
8.9 12
9.9 9
3.4 7 0.5 4
1.9 9 North-Kaspiyskiy
Licence Areas: Rosneft Prospective (filed for licence)
Area, th. km2 Total Reserves and Resources (bln boe)
18.7 38
84.3 126
Central- Barentsevskiy
13
5 Refineries Upgrade
Rosneft total, mln t 2010 2016
Throughputs 51 75
Light product yield 29 60
Rosneft in Germany, mln t
2010 2016
Throughputs - 11 Light product yield, including petrochemicals
- 10
Rosneft in Russia, mln t
2010 2016
Throughputs 51 58 Light product yield 29 44
Rosneft in China, mln t
2010 2016
Throughputs - 6.4 Light product yield - 5.6
14
Russia
2010 2020Other
Monoethyleneglycol
Polypropylene
Polyethylene
3.9
0.5
China
Expansion of Angarsk Polymer Plant Expansion of pyrolysis unit from
200,000 to 450,000 tonne of ethylene per year
350,000 tonne polyethylene facility – the largest in Russia
Eastern Petrochemical Plant Capacity – 3.5 mln tonne World’s largest pyrolysis facility Plant to produce mostly polymers
Production of petrochemicals in Russia, mln t
15
х8
Development of Petrochemical Business 5
Ensuring that industrial and environmental safety corresponds to the latest international standards (OHSAS 18001 and ISO 14001) and best practice
Focus on preventing pipeline accidents and
eliminating any environmental risks related to spills of oil or petroleum products Sustained reduction in emissions
Safe waste disposal and land rehabilitation Increasing associated petroleum gas
utilization to 95% Enhancing environmental characteristics of
petroleum products by switching to Euro-5
Industrial and Environmental Safety Priorities
16
The Arctic Research Center (ARC)
17
ARC Objectives:
Design and interpretation of the exploration activities
Design of field development and surface facilities construction
R&D, engineering, adaptation and implementation of new technologies
Expert review, standardization and regulatory compliance of offshore projects
Environmental expert review, control, and environmental impact assessment of offshore operations
Monitoring and emergency prevention
KEY TECHNOLOGIES FOR SHELF DEVELOPMENT
Important Notice
The information contained herein has been prepared by the Company. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. These materials contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been verified by the Company. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.