EFFECTIVENESS OF RUSSNEFT PRODUCTION COSTS OPTIMISATION PROGRAMME ESTIMATED AT RUB 167 MILLION
PJSC “RussNeft”, one of the top 10 Russian oil companies, calculated economic effect of the implementation of the Production Costs Optimisation (PCO) Programme, which was launched with the involvement of all subsidiaries of the Company. The benefit of the Programme is amounted to RUB 167 million.
The concept of the project is to enable the motivated employees to generate innovation ideas for development of the Company.
The programme is aimed at accumulation of the experience of finding organizational and administrative solutions and introducing technical arrangements that would substantially improve the production efficiency. “RussNeft” currently has a coherent system of support of brand new ideas and proposals. The cost-cutting proposals are considered at the Section of the Scientific and Technical Review Council (STRC) of the Company. The ideas that imply substantial investments are reviewed and discussed separately at the STRC meetings under the chairmanship of the President of the Company.
In order to maintain a competitive spirit, in autumn 2017 a corporate contest for authors of cost and processes optimization ideas was established within the framework of PCO programme. In early April 2018 the contest was completed, the winners were chosen and awarded.
In 2017, the Company`s management took in and reviewed at its scientific and technical panels 74 new ideas proposed by the Company`s employees.
BACKGROUND INFORMATION by MK:
PJSC “RussNeft” ranks among the Top-10 largest oil companies by crude oil production in Russia.
The Company possesses a well-balanced portfolio of assets located in the key Russian oil and gas provinces (West Siberia, Volga-Urals and Central Siberia). It has interests in Azerbaijan.
The number of the Company’s personnel is around 10,000.
The company’s 2P reserves are over 200 million tonnes (SPE).