2022 HYDROCARBON PRODUCTION INCREASED BY
2.3% YOY TO 5.10 MLN BOE PER DAY
2022 GAS PRODUCTION REACHED A RECORD HIGH OF
IN 2022, 7 OIL AND GAS DEPOSITS AND 153
NEW OIL AND GAS ACCUMULATIONS WERE DISCOVERED
THE COMPANY DISCOVERED MADACHAGSKOYE FIELD
WITH 82 MLN TONNES OF RESERVES, THE LARGEST DISCOVERY IN RUSSIA IN
2022 PETROLEUM PRODUCTS SALES ON THE DOMESTIC
MARKET REACHED A RECORD HIGH OF 42.1 MLN TONNES
FINANCIAL DEBT AND PREPAYMENTS DECREASED BY
RUB 0.7 TRLN COMPARED TO THE BEGINNING OF THE YEAR
Rosneft Oil Company releases 12M 2022 results
prepared in accordance with International Financial Reporting
RUB bln (except %)
Costs and expenses
Net income attributable to Rosneft shareholders1
Adjusted operating cashflow
Rosneft’s Chairman of the Management Board and
Chief Executive Officer Igor Sechin said:
“In the reporting year, in the context of
external pressure and a volatile macro environment, the Company once
again demonstrated operational efficiency and confirmed the
resilience of its business model.
Thus, in 2022, the Company's hydrocarbon
production exceeded the 2021 level and amounted to 5.10 mln boe
per day. I would like to make a special mention of the Sakhalin-1
project. After the exit of the former operator, we restored
production within the shortest possible period of time and began
tanker shipments, while resuming the drilling program. In addition,
we have saved over 3,000 highly qualified jobs.
In 2022, thanks to tight cost control and efforts
to improve efficiency, the Company managed to rein in the unit
upstream cost growth below the industrial producer price inflation.
In the reporting year, the Company’s revenue and
EBITDA increased, while debt and trade liabilities decreased by
RUB 0.7 trln as compared to the beginning of the year.
We continued our ambitious investment program –
2022 capital expenditures exceeded RUB 1.1 trln.
At the same time, we should note that over the
past three years, the tax conditions for the activities of oil
companies have been made more stringent on 14 occasions, which
certainly creates risks for the implementation of our production
Strictly adhering to the principles of the
dividend policy, in February 2023, Rosneft completed the payment of
interim dividends totaling over RUB 216 bln, which
corresponds to 50% of the IFRS net income for 1H 2022. Positive
2022 net income lays the foundation for sustainable performance-based
payouts to shareholders for the entire reporting period.”
Exploration and production
In 2022, hydrocarbon production reached
5.10 mln boe per day, exceeding the 2021 level by 2.3% YoY.
At the same time, in Q4 2022, average daily hydrocarbon
production increased to 5.50 mln boe due to the production
restart at the Sakhalin-1 project.
In the reporting year, gas production hit a new
all-time record of 74.4 bcm, up by 15.0% YoY.
In 2022, Rosneft conducted over 4.4 th. linear km
of 2D seismic and more than 6.8 th. sq. km of 3D seismic
work onshore. Rosneft tested 64 exploration wells with an 80% success
High efficiency of the geological exploration
allowed for the discovery of 7 oil and gas deposits and 153 new oil
and gas accumulations with around 0.3 bln toe of AB1C1+B2C2
reserves. The most significant discoveries included the Madachagskoye
field on the Pechora Sea shelf with 82.3 mln tonnes of
ÀÂ1Ñ1+Â2Ñ2 recoverable oil reserves, which is the largest
discovery in Russia in 20222. As a result, the Company’s
ÀÂ1Ñ1+Â2Ñ2 hydrocarbon reserves amounted to 159.3 bln boe
(21.5 bln toe) as of December 31, 2022.
According to the results of the reserve audit
under the PRMS standards (the international Petroleum Resources
Management System), as of December 31, 2022 the Company's
1P, 2P and 3P hydrocarbon reserves amounted to 42.3 bln boe,
84.2 bln boe, and 132.4 bln boe, respectively.
The 2Ð reserves replacement ratio is in excess of 100%.
In 2022, production drilling footage amounted to
11.2 mln meters, up by 3.3% YoY. In recent years, despite the
volatility of the macroeconomic and geopolitical environment, Rosneft
has maintained consistently high volumes of production drilling. In
the reporting year, the number of newly commissioned wells exceeded
3 th. units, while the share of the most efficient new
horizontal wells was 68%. In 2022, the number of newly commissioned
horizontal wells with multistage hydrofracturing exceeded 1.3 th.
units, or 43% of the total number of wells commissioned. Unit
production per a horizontal well is twice as much as a unit
performance of a directional well. The use of these wells allows the
Company to maintain sustainable brownfield production by developing
more complex reserves, as well as to reduce the conventional reserve
The Vostok Oil project
In 2022, the Company completed over
2 th. linear km of 2D seismic surveys and 2 th. sq. km
of 3D seismic, drilled 6 exploration wells and completed construction
of 4 wells with 5 wells being tested at the flagship Vostok Oil
project. As a result, in the reporting year, the resource base of the
project increased by 300 mln tonnes to 6.5 bln tonnes.
The project’s high resource potential was confirmed by the results
of an independent international audit.
In H2 2022, the Company started pilot
commercial development of the Payakhskoye field. Currently, Rosneft
has drilled more than 25 th. m and completed 7 production
wells while drilling is in progress at 5 more wells.
The construction of the Vankor–Payakha–Sever
Bay oil trunk pipeline and an expansion of coastal and mooring
infrastructure is underway. Within the framework of the project,
record long winter roads of 2 th. km were built through the
north of the Krasnoyarsk Territory and the Yamalo-Nenets Autonomous
Refining and marketing
In 2022, the Company processed 94.4 mln tonnes.
The processing depth at the Company’s refineries in Russia
increased to 76.2%, while light product yields improved to 57.1%.
In the reporting year, Rosneft continued to fully
meet the growing demand for high-quality motor fuels on the domestic
market. In 2022, domestic petroleum product sales reached a record
level of 42.1 mln tonnes, up by 6.0% YoY. The Company has
been consistently working on development of domestic technologies and
import substitution. Rosneft’s refineries in Russia use proprietary
catalysts for production of motor fuels compliant with modern
standards. In 2022, the Company launched export sales of its
catalysts due to their high quality.
In 2022, Rosneft’s operating performance and the
macroeconomic environment combined with competent management
decisions allowed the Company to achieve growth in a number of key
In 2022, the Company’s revenue3
increased by 3.2% YoY, while EBITDA improved by 9.5% YoY.
In 2022, net income attributable to shareholders
amounted to RUB 813 bln. The indicator dynamics was
affected by non-monetary factors. The achieved level of net income
forms a solid basis for dividend payment for the reporting year.
Higher electricity prices, as well as increased
tariffs for transportation of oil and petroleum products by rail and
by pipeline had a negative impact on the dynamics of operating and
In 2022, the Company’s capital expenditure
reached RUB 1.1 trln, up by 7.9% YoY.
The implementation of measures aimed at
maintaining financial resilience allowed for the reduction of the
Company’s financial debt and prepayments by RUB 0.7 trln
compared to the beginning of 2022. The Net financial debt/EBITDA
ratio was 1.3x as of the end of 2022, which corresponds to this
financial ratio at the beginning of last year.
In 2022, the Company continued the implementation
of measures aimed at achieving sustainable development goals within
the framework of the Rosneft 2030: Reliable Energy and Global Energy
During 2022, the PSER-1 process safety event rate
improved by 30% (compared to the 2021 baseline). Rosneft strives to
achieve zero accidents by 2030 or earlier.
In 2022, Rosneft remediated 149 hectares of legacy
polluted land under the Program for the liquidation of the
environmental legacy. In 2022, the volume of drilling waste decreased
by 34% due to improved waste management efficiency ensuring no
additional waste accumulation.
In 2022, the Company continued implementing the
Program on detecting and eliminating methane leaks as well as
reducing methane emissions at hydrocarbon production facilities. The
comprehensive air and ground monitoring covered over 800 sites at 20
The Company's activities in the field of
sustainable development win stakeholder recognition. In 2022, for the
seventh consecutive time Rosneft was among the leaders of the Russian
ESG stock indices, including the Moscow Exchange - RSPP
“Responsibility and Openness” index and the Moscow Exchange -
RSPP “Sustainable Development Vector” index. The Company was
assigned the highest rating in the Sustainable Corporate Governance
ESG rating compiled by the University of Perugia (Italy) and the
Corporate Development “Da-Strategy” Agency.
1 The net income dynamics is primarily
due to external factors, including non-cash effects from the actual
seizure of the Company's assets in Germany and changes in the RUB
2 In 2021, Rosneft discovered a gas
condensate field named after E. Zinichev with 384 bcm of
ÀÂ1Ñ1+Â2Ñ2 recoverable gas reserves which is unique in terms of
its reserves volume – the largest global discovery made that year.
In 2020, 2 large Arctic fields were discovered (the Zhukov gas field
and the Rokossovsky gas condensate field) with total reserves of 1.3
trln cubic meters of gas and 55 mln tonnes of condensate.
Includes revenue and equity share in profits of associates and joint
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