Upstream division

The main energy efficiency indicator at Upstream Division enterprises is the specific electricity consumption for liquid extraction, which totalled 28.91 kWh/t in 2016, or 1.7% below the planned level.

The Energy Efficiency Programme exceeded its targets in 2016. The Upstream Division had energy savings of 433 million kWh (RUB 1.251 billion), which is a record level for the implementation of energy efficiency programmes at Gazprom Neft.

The growth in the Company’s energy consumption is consistent with the growth in the technologies and equipment that are being introduced. Implementing energy conservation measures not only allows us to contain growth, but also reduce specific consumption indicators by taking a systematic approach, expanding the number of participants in the Upstream Division’s energy efficiency programme and developing energy management.
Anton Gladchenko Director of the Gazprom Neft Gas and Energy Directorate

More than one hundred recommendations were prepared to replicate energy conservation best practices at the Company based on the results of Annual Energy Efficiency Surveys of the energy management system.

The most significant energy efficiency projects in 2016 included:

  • the use of high efficiency electric submersible pump units;
  • the introduction of permanent magnet motors;
  • the operation of downhole equipment in periodic operating modes;
  • a reduction in water produced and its pumping into the formation (shutdown of unprofitable wells and the performance of geological and technical measures);
  • the selection of the optimal size and replacement of pumping units at water-injection and booster pumping stations and initial water separation units;
  • the installation of variable frequency drives on pumping equipment;
  • the optimisation of electric heating systems (the installation of thermostats).

The Upstream Division pays particular attention to the specialised training of its employees. In 2016, the Division launched creation of the new ‘Energy Conservation’ training module, a project that is unique not only for Gazprom Neft subsidiaries, but for the Russian oil industry as a whole. The module is primarily designed for engineering and technical personnel as well as specialists whose activities are directly related to energy-intensive business processes. It includes a training course as well as a block of a hundred questions to test employees’ knowledge on the subject of energy conservation.

The Upstream Division implemented a programme to improve reliability and modernise its electrical equipment and grids during the reporting year. The programme involved the capital construction of power supply facilities, the modernisation of power grids and substations, the introduction of high-speed automatic transfer switch and automated information systems as well as enhanced storm stability and lightning protection of power grids. As a result of the programme, oil shortfalls during emergency power shutoffs declined by 1.5% compared with 2015.

Employees from the Upstream Division’s subsidiaries and corporate centre took active part in the Russian oil industry festival #ВМЕСТЕЯРЧЕ and the international energy forum ENES-2016 as a partner and participant in energy efficiency contests. The youth team from among employees of the Upstream Division’s subsidiaries finished second in the contest of energy efficiency projects at the ENES-2016 forum. Gazprom Neft’s video for employees ‘Improving Energy Efficiency’ also took home a prize.

Taking into account the oil production targets, the Company actively developed the capacity of power generation facilities by building new and expanding existing autonomous power plants. Five new power generation facilities were commissioned last year.

Development of capacity at power generation facilities (MW) Source: Company data
433 mn kWh energy savings by the Upstream Division in 2016
Total energy consumption by the Upstream Division
Indicator 2012 2013 2014 2015 2016
Electricity consumption (purchased + generated), MWh 5,690,232 6,032,738 6,177,164 6,419,919 6,298,276
Change vs. previous period, % 6.9 6.0 2.4 3.9 (1.9)
Thermal energy consumption (internally produced and purchased from third-party suppliers), GJ 1,231,237 1,218,555 1,064,758 982,015 996,644
Change vs. previous period, % (3) (1) (13) (8) 1
Consumption of purchased energy
Indicator 2012 2013 2014 2015 2016
Purchased electricity (minus electricity transferred to third parties), MWh 4,902,184 5,180,370 5,183,377 5,356,476 5,218,287
Purchased thermal energy (minus electricity transferred to third parties), Gcal 29,152 31,623 28,384 22,858 26,700

The decrease in electricity consumption is the result of a reduction in the volume of fluid produced. The increase in thermal energy consumed for oil production processes was due to changes in the ambient air temperature.