Global trends and establishing long-term advantages

One distinct feature of the modern economic landscape is the ultrafast rate of change, which creates new challenges for all market players. This can most clearly be seen in the production and refining of oil and gas. The past few years have resulted in significant changes to the strategy of leading players in the industry. Price volatility requires companies to have an extremely high level of operational efficiency and the ability to compete successfully under any market conditions.

Key global trends and the Company’s response

Simultaneously, radical technological transformations are taking place as well. The main technological breakthroughs of the 2010s were horizontal drilling, hydraulic fracturing as well as shale mining and offshore production methods. In 2016-2017, these capabilities were supplemented with digital modelling, big data analysis, and the use of artificial intelligence, remote production management, and blockchain in supply chains.

Gazprom Neft strives to introduce the most advanced methods of oil exploration, production, and refining in its operations. As a result, the Company has become a flagship of the Fourth Industrial Revolution (‘Industry 4.0’) by providing an impetus for the technological development of the entire Russian oil industry.

But new technologies require new management methods. Gazprom Neft’s responses to key global trends have not been haphazard, but have consisted of a systematic process of managing changes and a range of complex technical and organizational transformations. The use of high technologies, complete vertical integration that encompasses the entire value chain, and the efficiency of all business processes have enabled the Company to successfully implement its strategy and turn challenges into opportunities.