News

Rusneftegaz can announce that we have updated our research and development strategy for the next five years. Whilst long-term projects have been assigned to facilitate the progress of our organization, for the majority of their time, our pool of engineers and scientists will be responding to the ongoing needs and challenges that are faced by our personnel working in the field. This regularly entails improvising tools, repairing or repurposing machinery according to the circumstances, in addition to prolonging the lifespan of assets that are vital to our operations. However, work shall also be conducted on the fulfillment of our strategic objectives, to be defined at a later date by the incoming management. Primarily, and regardless of the intricacies of these aims, this will entail the development and adoption of new technologies that will ultimately improve the efficiency and effectiveness of our organization, including making reductions in pollution and carbon emissions. Following the publication of the revisions to this aforementioned program, the incoming Deputy Chief Executive Officer, Aleksandr Filyurin, commented: 

“Since I joined Rusneftegaz a few weeks ago, I have been very impressed by all those I have met in the research and development department so far, they are highly skilled and knowledgeable in their areas of expertise. We are very fortunate to have them on our side. The work that they appear to do covers almost all areas of our business, obviously there is the work done in the laboratory, but also in terms of consulting on the acquisition of new equipment and developing new working practices out on our oil wells. Research is a fundamental pillar of our plan to grow and expand this company, and we believe that it is crucial that we place every available resource necessary to continue this important work. I view this investment as speculation, like trading stocks and shares. If we can find or do something that is vastly superior to what our competitors are doing, Rusneftegaz could become one of the leading companies in the global oil industry.” 

The outlined scheme builds upon those that preceded it, and ultimately recognizes both the achievement and the progress that has been registered over the past half-decade. At a fundamental level, this involves continuing to support the accumulation of knowledge by our personnel, and utilizing it appropriately within the relevant areas within our company. Thus, with this extensive understanding of our industry, our engineers are capable of changing the best working practices in accordance with the latest recommendations from across the globe. Similarly, continual learning gives our staff the skills necessary to analyze the suitability of specialist equipment that could be deployed on our production sites. Rusneftegaz will also continue to collaborate with our strategic partners, not only in academia, but private institutions and other enterprises. This shall be not merely be for our own immediate economic progress, but for the longer-term interest of all the involved entities. Throughout our corporate history, Rusneftegaz has routinely supported projects conducted by geologists and scientists alike with the data accrued on our license areas over the past twenty years, and this will continue for the foreseeable future. Such efforts could potentially yield meaningful benefits for the wider world, if the work is sufficiently bold and ambitious. For example, our company possesses both substantial monetary resources and research capacity to advance and improve the next generation of sustainable technologies. Therefore, a generous budget has been allocated to study catalytic reformation techniques that can be used to generate hydrogen, in conjunction with another project examining how electrolysis can potentially be utilized in the production of the fuel on an industrial scale. However, on a short-term basis, this comprehensive research and development program will enable our company to implement technical measures that will reduce costs and improve operations respectively. Hence, Rusneftegaz intends to consume considerable capital engineering alternative steam generators for our power stations over the next five years. Our management believes this represents a significant innovation upon contemporary production standards, and once this initial design phase culminates, it is projected that our organization will be able to modify our existing power infrastructure in accordance with these concepts. If this is successful, Rusneftegaz will have consequentially reduced the amount of coal required to facilitate electricity generation, and will undertake the necessary legal processes to protect the begotten intellectual property accordingly. With such a broad set of schemes being disclosed in this announcement, Rusneftegaz will endeavor to provide updates at the appropriate time, and will make further briefings regarding these plans accordingly.

Following the completion of the corporate reorganization, it can now be announced that changes have been made to the composition of our board of directors, with new personnel appointed accordingly to oversee the fulfillment of a long-term investment plan and infrastructure overhaul. The shareholders who have overseen this process can now place on record their thanks to the previous officeholders, and wish them well for all their future endeavors. However, there is a collectively held belief among said stakeholders that it is fundamentally necessary to undertake radical action to remodel Rusneftegaz in response to both recent financial disclosures and events that have unfolded in recent times. Foremost, Aleksandr Filyurin has been appointed as Deputy Chief Executive Officer and Deputy Chairman of the board of directors alongside Mikhail Avdeyev, whom will take the position of Chief Financial Officer correspondingly. Following his selection, Filyurin stated: 

“I am humbled to be joining this impressive company at such a pivotal time. I look forward to working with the other members of the board, and the rest of the leadership team, as we collectively build on the foundations that have been laid and lead Rusneftegaz into the next era of its growth. I will listen and learn from all of those who work for this esteemed organization to help meet our targets, as the challenges we face today will set us up for an even stronger future.” 

Similarly, Avdeyev also articulated: 

“I feel humbled, privileged and delighted to have been given the opportunity to join Rusneftegaz and lead an exceptional team as we go forward. The opportunity to use the expertise of this company to develop and enrich the lives of our existing and future end customers is particularly exciting, as well as meeting the high aspirations the company has to fulfil its strategic growth ambitions. 

Vitaly Kalyuzhniy and Andrey Uraev have also taken up posts and will serve as members of the management board as Chief Operations Officer and Company Secretary respectively, with all other roles to be fulfilled by their current occupants. The incoming contingents have asserted their ambition for Rusneftegaz in a private meeting with shareholders earlier this morning, and will take their new positions with immediate effect. In response to his promotion, Uraev explained: 

“I am incredibly honored to have the opportunity to continue my work with Rusneftegaz and make sure the exceptional work that has been done over the past ten years becomes a platform for greater success.” 

Likewise, the highly-experienced Kalyuzhniy also elucidated: 

“Rusneftegaz has consistently proven itself to be one of the most successful operators in the Russian oil industry. I am committed to furthering the international expansion of our company and using our expertise and experience to further enhance our position in the market.” 

​The new appointees have been tasked with overhauling both the operational and corporate structures of our organization, following an undisclosed strategic review of all commercial undertakings by the shareholders that concluded late last year. Consequently, we intend to revise our long-term economic plan, and now ultimately intends to focus our resources on increasing production internationally, the results of which are anticipated to be made public in the months ahead. Whilst the Russian Federation has provided a strong basis for our growth thus far, management and shareholders are now united in the belief that it is necessary to pivot to a more global outlook to pursue future opportunities. Although there may be a period of adjustment due to the announced changes, the employees, partners and affiliates of Rusneftegaz should be assured that stockholders have made the decisions set forth in this article with due consideration and in the best interests of the company. We necessitate your cooperation and understanding at this time. 

We can today announce that we have now finalized a comprehensive reorganization of our corporate structure that should ultimately yield significant capital investments for our organization over the next five years. Under the terms of the arrangement, Rusneftegaz will continue to operate as a holding company for our existing oil and gas assets, which span some of the most productive regions in both the Komi Republic and the Khanty-Mansi Autonomous Okrug. At present, we hold thirteen licenses across the former in addition to an equal number in the latter, with these totals expected to increase in the future as a result of the anticipated expansion of our operations. Whilst the extraction of hydrocarbons has undoubtedly been the cornerstone of our past success, we now wish to diversify more broadly within the scope of the energy sector. Although we have previously made attempts to extend our commercial strategy in the past, we are determined not to make the same errors as before, and will only pursue growth in areas where we have sufficient expertise or are directly linked to our current activities. In this regard, we are to focus on growing our power engineering business, which our leadership believes has the potential to become a crucial component of our wider enterprise. Prior to this restructuring, we owned and managed 1.860 MW of production capacity in Vologda Oblast, serving the requirements of local industry. However, we now believe that we can make further progress in this field, and will make adjustments in due course to accommodate these new aims. The fulfillment of these revised objectives, in conjunction with our previous plans, is paramount to both our long-term prosperity and that of all those affiliated with us.

​Throughout all our programs, we intend to place considerable impetus on deploying the next generation of sustainable technologies to ensure all that we do is as efficient as possible. This will also simultaneously guarantee our lasting commitment to environmental conservation and protection, which remain fundamental tenets of our enduring values. Hence, we think it is in our best interest to devise a coordinated research and development stratagem to empower us to not only mitigate and resolve issues, but to make a contribution to society as a whole. This may include introducing both new equipment and best practices as per the latest academic studies, or ensuring the maximum lifespan of our infrastructure. While we shall disclose the intricacies of this proposal in the next few weeks, it will take longer to make amendments to our investment program to align with our ambitions, which will be divulged in the next ninety days. As an entity, we believe it is critical to make correct judgements regarding this matter, and therefore need extra time to contemplate the complexities of such affairs. This is particularly exaggerated by the fact that this is due to be the largest sum invested in our corporation in the entirety of our history, and could be transformational for our fortunes if conducted diligently. The effects of this evolution may not merely manifest itself domestically within the Russian Federation, but also internationally, with our board of directors harboring aspirations to expand into global markets as soon as it is practical to do so. Such a move would significantly broaden our range of interests following what has been a tumultuous few years for our company, where we have been ravaged by both internal and external difficulties.

As we seek to move forward from these problems, most of which were and are beyond our control, our executives wholeheartedly think that by reorganizing our existing holdings we shall have an increased capability to respond to the extensive challenges ahead. Although this comes only a decade after our last major restructuring in 2005, it will yield a multitude of benefits in both the immediate and distant future. Whilst the majority of these advantages are financial, we can also capitalize upon the unique coadjuvancy and synergies amongst our subsidiaries. By integrating each of these further within our group of companies in the coming months, we will simplify our corporate structure and improve the efficiency and execution of our operations. Despite the fact that none of these entities will be rebranded at this time for cost reasons, we refuse to rule out making such changes at a later date and will make appropriate judgements accordingly. Each member of this grouping, nevertheless, will be controlled directly via a centralized administration in Moscow, which is to be enlarged to conform to these new requirements. This office will ultimately manage every aspect of an organization with assets valued at over $750.0 million, and with the capacity to extract approximately fifteen thousand barrels of crude per day. This transition will see our enterprise conduct our commercial affairs in a similar to vein to our contemporaries, albeit we are restricted in what we can publish with regard to this at present. Further updates pertaining to this, and all other associated proceedings, are forthcoming and will be announced in a timely fashion. Until this time, all inquiries should be directed through the usual channels, but information will be limited prior to the publication of additional details soon. We necessitate your cooperation and understanding with this important matter.