About Us
As an ambitious and rapidly expanding corporation, Rusneftegaz has devised a comprehensive plan to facilitate our economic progress over the next decade. This includes setting strategic short and long-term aims for the advancement of all facets of our business operations, whilst also holding high aspirations for all those affiliated with our organization, including our staff, affiliates, subsidiaries and partners. The expeditious nature of our growth over the past two decades has been principally due to the aspirational goals and commitments set by both current and previous directors, ultimately yielding the enlargement of one of the fastest-growing enterprises in the Russian Federation. Fundamentally, our primary corporate aim is to enhance the value of our hydrocarbons, primarily via increases in the production of crude oil, in addition to the expansion of our petroleum reserves. Be that as it may, while such activities are financially fruitful immediately, the objective for us over the course of the next ten years is to transform into a next-generation company, acting as a model for other entities around the world through the modicum of efficiency and technological effectiveness.
We seek to achieve these objectives by continuing to fulfill our technical, scientific and financial potential, whilst also upholding the highest possible standards of corporate governance and best practice. These factors, in unison with a fiscal policy with both liberal and conservative elements, should yield growth of a superior quality by taking efficient investment decisions in selected areas of development, but also retention of healthy cash balances as a contingency. This is evidenced in our oil business, where the long-term aim is to pursue the vertical integration of all aspects of our operations. Currently, we are exclusively a petroleum producer and trader, conducting only upstream and downstream undertakings. Nonetheless, within the next decade it is our aspiration to commence midstream activities, presumably through acquisition of other companies or sites. In the immediate future, however, Rusneftegaz aims to maximize our revenue per barrel produced, mostly via the optimization of marketing and extraction strategies.
This essentially entails extricating petroleum in volumes adjusted by current demand, but also involves maintaining and investing in our physical infrastructure to minimize our costs, while also making lasting improvements to our operational efficiency. Funds will additionally be directed towards introducing, developing and adopting new equipment, with innovation being a key tenet of our strategy to optimize production, mitigate our expenses and reduce the price of proven technologies. This is particularly important with mature oil fields, which require enhanced recovery programs to sustain sufficient output. Maximizing cost-efficient extraction for both our hard-to-recover and more depleted hydrocarbon deposits requires machinery that in some cases cannot be solely formulated by us internally. Therefore, we will continue to build, utilize and develop partnerships with other entities, institutions and universities to collectively share experience and knowledge.
Although our current oil operation is centered upon our upstream undertakings, recently Rusneftegaz has also rapidly expanded our downstream business, marketing petroleum products internationally to buyers across the globe. Whilst we are a determined and growing company, we do not presently conduct any crude production or electricity generation activities outside Russia. In spite of the fact that we have previously ventured into the Middle East and North Africa, pursuing schemes in concord with both national governments and the Russian Ministry of Energy, ultimately the discussions held with ministers, secretaries, and diplomats were not fruitful. Thus, the only non-domestic commerce we perform is commodities trading from a hub in New York, and it is our aim to grow both this and our other operations further and on a global scale.
Notwithstanding the fact petroleum is a significant part of our wider enterprise, the advancement of our generation business has been a revelation, becoming a vital source of new revenues. As a consequence, a broader strategy was devised to increase the role of the power division in our forthcoming plans, chiefly optimizing the structure of our production capacity to improve effectiveness and reduce operating costs. As per our oil undertakings, this encompasses the effective implementation of investment proposals, including undertaking new construction planning and executing upgrades to existing sites. Conversely, despite the fact it is preferable to modernize all projects and enhance energy efficiency, in some instances it is imperative to decommission assets and facilities that are no longer economically viable. All such ventures, when arranged into a formal program, will yield increased operational reliability for our infrastructure, ensuring the reliable supply of electricity to our customers.
Nevertheless, while it is crucial to maintain profitability in the immediate future, with the sector in which we operate currently in flux it is critical to ensure innovation is the fundamental consideration in our long-term strategies. Therefore, we intend to deploy the latest technologies, and create our own, to enable us to become industry leaders within the next two decades. This may also incorporate expanding our business by entering promising and strategic markets both in Russia and abroad, should it be lucrative to do so. Overall, we believe that we have the capability to thrive in an energy transition. We also postulate that Rusneftegaz has the intellectual and financial resources to evolve into a leader in our field, as a result of our efforts to engage with hydrogen and next generation power equipment.
