Technological development

Production process automation

The Company has approved a strategy to enhance the production processes automation, which is being successfully implemented. This improves the quality of management, speeds up the decision-making, ultimately reducing the cost of oil and gas production. Subsequently, this simplifies the planning of field development and operation.

Since 2017, OIS "Production", OIS "Shahmatka" and "NGT SMART", OIS "Factor Analysis" and OIS “Technolog” have been implemented and are successfully operating.

For the Company it means:

single integrated database
unified information processing algorithms
geology and production integration
analysis of the efficiency of field development
well intervention planning, well intervention efficiency analysis
comparison and analysis of planned and actual production indicators
active wells operating modes analysis.

In 2018, a pilot installation of the ADVANTA digital system for project management in capital construction was carried out. The system proved to be highly effective and was put into commercial operation in 2019. In the current period, the System is used to conduct a full cycle of design and estimate documentation development, from the specifications and design assignments development to the uploading of project documentation after approval by Glavgosexpertiza.

In 2019, an advanced domestic software package for the design of hydraulic fracturing (fracking) was introduced. Its use made it possible to strengthen control over HF operations, develop an optimal HF design for specific geological conditions, including for the complex conditions of the Bazhenov Formation and Achimov deposits.

Since 2020, as part of the development of Upstream information systems, the operation of the OIS “Technolog” electronic modules has continued, where various functions for monitoring well performance parameters are implemented, being received directly from the field telemetry system, as well as the operation of the automated planning and analysis system for the efficiency of well interventions (PSWI), which allows for increasing the efficiency of technological calculations, introducing electronic interaction between specialists, automating some functions for generating operational reports and analyzing the efficiency of well interventions.

The Company adheres to the principles of responsibility in elaborating civil solutions using artificial intelligence (AI) and in 2023 joined the AI Code of Ethics.

In 2024, a model for the systemic introduction of AI technologies in the processes of production and field development was worked out to improve operational efficiency.

In 2025, an internal competence center for the development and application of artificial intelligence technologies was established to improve the efficiency of oil field production and development. Comprehensive research and development (R&D) and pilot testing are being conducted in priority areas. The first positive results have already been achieved at pilot testing sites: slowdown of base production decline and additional oil production generated from well interventions. Successful projects are currently being scaled across all of the Company's fields.

Competencies in the development of hard-to-recover reserves (HTR reserves) and well stimulation technology

In 2019-2025, efficiency in operations with HTR reserves was ensured by the Comprehensive Field Development Optimization System introduced in the Company. The main components of the system are:

A unified digital information and analysis system for improving development efficiency
Modern approaches and software for Proxy and 3D geological and hydrodynamic modelling, taking into account geomechanics and nonlinear fluid flow in the reservoir
A system for operational streamlining of development in production drilling zones, factoring in real geology, geomechanics and actual production data for the construction of new wells
Integrated multivariate techno-economic modelling of field development systems
Factor analysis of base production and well intervention (GTM), comprehensove analysis of the current state of development, well intervention planning
In 2025, artificial intelligence (AI) technologies were integrated to generate solutions for the Company’s production and field development processes, development management, well interventions, production technology, down-hole treatment, and corporate consulting.

Horizontal wells completion technologies for MSHF

Since 2016, the Company has been implementing projects for drilling horizontal wells with multi-stage hydraulic fracturing (MSHF). In performing MSHF, special attention shall be paid to completion systems, since implementation of several fractures along one wellbore necessitates solving a number of complex technological problems, namely to ensure:

high-quality isolation of MSHF zones from each other
high-quality opening of the zone of hydraulic fracturing (HF)
reducing the time of multi-stage hydraulic fracturing.

In 2016-2018, technological solutions were implemented that gave impetus to the development of cost optimization processes for MSHF, while increasing technological efficiency and reducing the time spent on operations. The following solutions were tested and implemented:

ball arrangements that allow performing staged hydraulic fracturing in an open borehole with the help of a system of swellable packers and ball couplings of MSHF
sliding couplings with the possibility of re-closing (ball arrangements)
couplings with dissolvable saddles (ball arrangements);
the “Mongoose” technology used in a cased horizontal borehole and implemented through the joint operation of hydraulic fracturing and coiled tubing
the "Plug & Perf", a technology using a geophysical cable for hydraulic fracturing in a cased horizontal borehole.

In 2019, the implementation of a program for the construction and completion of horizontal wells in a 2-column scheme with a horizontal section length of over 500 meters and reservoir exposure angle of more than 90° was initiated, which reduces specific cost of new wells.

In 2020, high indicators were achieved due to the implementation of technological solutions to increase the length of horizontal wells sections from 500 to 750 meters. The average annual increase in oil production from horizontal wells was 59.3 tons/day, with the planned 48 tons/day.

In December 2020, well 46012 was drilled and commissioned in the southeastern part of the South reservoir of the Achimov deposits of the Tagrinskoye field with a horizontal section length of 1000 meters. 10 hydraulic fracturing stages have been performed at the well. In addition to the standard proppant, the SANDRIT propping agent (fractionated quartz sand), weighing 264 tons (38% of the total volume) was used. The use of SANDRIT helped to reduce proppant costs by 43%, while the total cost of hydraulic fracturing was reduced by 14%. The initial well flow rate was 175.5 tons/day.

In 2021, pilot work was successfully carried out using an improved stinger design for wells with a 146x114 mm production casing. The modified “stinger-polished funnel” assembly eliminated the need of the reaming stage in the interval of installing a staged cementing coupling (SCC), which led to reducing well development period by 3 days. The application of this stinger modification is currently being replicated.

The use of the SANDRIT propping agent (fractionated quartz sand) for hydraulic fracturing continues to raise. Pilot work, conducted in 2022-2023, affirmed the possibility of bringing the share of SANDRIT in the total mass of injected proppant to 45% without loss of quality.

Since 2023, in the development of deposits with HTR, the advanced technologies have been tested and applied , e.g. optimizing the design of injection equipment helps significantly raise the staging of multistage fracking with an increase in the number of couplings in the horizontal section from 10-15 to 24 ports.

In 2023, the initiative for split service, which implies leasing tubing and fountain equipment, as well as for the provision of all the main chemical components for gel systems of rupture fluid and a proppant wedging agent to the fracturing contractor on a give-and-take basis was fully implemented. This eventually allowed for a 5% reduction in the cost of hydraulic fracturing. The vast majority of the components for the operation (97%), from the wedging agent to the biocide, are produced in the Russian Federation by domestic manufacturers.

Since February 2023, the Nizhnevartovsk branch has been implementing a cost optimization program by excluding mini hydraulic fracturing from the design, which reduces the duration of the operation and saves several tens of millions of rubles annually.

Since June 2023, the Nizhnevartovsk branch, after testing and formulations selection, has been using a combined stabilizer-demulsifier 2-in-1 chemical agent, which reduces the cost of hydraulic fracturing by several million rubles annually.

In 2024, based on the results of pilot works carried out in the development of wells of the Vostochno-Kamennoye field drilled to the Vikulovskaya suite, various options for completion assemblies and development methods were introduced (an MSHF assembly with multi-stage hydraulic fracturing, a slotted filter followed by hydrochloric acid treatment to clean the wellbore zone from drilling mud filtrate, as well as a combination of these assemblies) MSHF ports + slotted filter. The developed approaches made it possible to ensure maximum well productivity.

In 2025, technological optimizations aimed at reducing the cost per meter drilled by 5 to 15% were successfully implemented. At the Vostochno-Kamennoye field, a cluster (pad) drilling method was used in 4 horizontal wells, and the first stage of pilot operations was conducted to optimize the open-hole diameter for a combined casing string design of 146x114 mm (drilling the openhole with a single drill bit diameter of 215.9 mm) in a horizontal well at the Vostochno-Kamenny field. Changing the open-hole diameter made it possible to reduce the cost per meter drilled in a horizontal well for the combined casing design.

In total, across the Company in 2025, 692 hydraulic fracturing stages (ports) were completed, with a total proppant mass exceeding 48 thousand tons. Over the period from 2018 to 2025, more than 5.5 thousand stages of hydraulic fracturing were performed.

Process solutions for implementation of well interventions

In May 2019, for the first time in the Company, an acid fracturing of the formation with using a polymer-free gel system at high reservoir temperature (+118°C) was carried out on the Paleozoic carbonate deposits at the Khanty-Mansiyskoye field. The use of this technology reduced the acid-rock reaction velocity more than 15-fold, allowing for the deeper penetration of the working acid into the formation.

In December 2020, a high-flow, large-volume hydrochloric acid treatment of carbonate deposits was conducted at low reservoir temperatures. The work was carried out in the Ulyanovsk branch of the Company. The uniqueness of the work lies in the fact that as a working fluid we used a higher viscosity polymer-free acid gel based on surfactants. The use of this type of acidic composition helps to achieve a significantly greater coverage of the target treatment object in terms of power and to create highly conductive channels / cracks with low residual contamination (due to the absence of polymer compounds in the acid composition). The treatment was carried out using equipment with injection rate of 2-3 m³/min. The cost of treatment is twice lower than the cost of a standard hydraulic fracturing. As a result of the work performed, a steady incremental oil rate of more than 30 tons per day was achieved.

In 2020, selecting the optimal acid composition for treating horizontal wells that had previously undergone multi-stage hydraulic fracturing was carried out.

In 2021, a large-scale program for stimulating horizontal wells with the selected optimal combined acid composition was successfully implemented.

In 2022, pilot survey on the use of new compositions for RIW (repair and insulation works) in complex well conditions was successfully completed. The achieved success rate significantly exceeds the industry average for this type of well intervention. A program has been developed for further implementation of the selected technology.

In 2023, a project for pilot testing of effective acid diversion technologies was initiated in order to enhance the efficiency of repeated combined acid treatment of horizontal wells with multi-stage hydraulic fracturing.

In May 2024, for the first time in the Ulyanovsk branch of the Company, an innovative proppant fracturing on an acid polymer-free gel (APFGHF) was carried out at the Mordovoozerskoye field. 15 tons of 16/20-sized proppant per 60 m³ of viscoelastic acid gel were successfully pumped. The well flow rate after development was 33 tons / day, which exceeds the estimated value by 30%. This technology is considered as an alternative to the already widely known high-flow large-volume hydrochloric acid treatments and allows to significantly increase the duration of the effect due to the formation of a highly conductive proppant-consolidated fracture. At the moment, the technology of proppant fracturing followed by acid treatment has been added to the arsenal of successfully applied technologies for the intensification of carbonate reservoirs of mature fields of the Volga-Ural basin.

In 2025, the Khanty-Mansi branch successfully completed a testing program for hydrojet sand perforating and hydraulic fracturing (HSP+HF) technology. Three stages of HSP+HF were performed in a horizontal wellbore in a single trip. This technology accelerates and simplifies completion and reduces construction costs for new wells, as well as increases the number of MSHF stages, and optimizes the selection of stimulation zones in horizontal wells. The technology also has high potential for use in re-fracturing and selective bottom-hole treatments.

Pumping wells operating technologies

During the operation of the artificial lift well stock, the sequential introduction of tubing hangers with an internal polymer coating was continued. According to the results of 2025, 566 wells (+77 compared to 2024) at the Company's fields are equipped with corrosion-proof tubing, which comprehensively prevents complications caused by corrosion and asphalts-resins-paraffins deposits, while also reducing operational expenses.

Following the results of 2025, despite the reduction in the number of average producing well stock and the implementation of measures to improve the energy efficiency of pumping wells, the Company will generally manage to maintain the MTBF (Mean Time Before Failure) indicator above 800 days.

In general, work regarding the operation of the artificial lift well stock is carried out in accordance with approved local regulations and annually developed Organizational and Technological Measures directly related to the Program of Increasing the Mean Time Before Failure, reduction of failures and less frequent approaches to wells by routine maintenance crews.

Upgrade of pipelines and infrastructure

The Company has developed a program, which allows avoiding environmental risks and aims at diversification of hydrocarbons transportation in Nizhnevartovsk district and upgrade of lines for transporting stock-tank oil from the oilfields. The pressure oil pipeline was commissioned, construction on the technical re-equipment of a central oil custody transfer is at the final stage. Also, as part of the project, tank farms at the on-site facilities of the producing enterprise are being reconstructed and upgraded.

As part of the Vostochno-Kamennoye field development project of the Khanty-Mansiysk branch, a 61.8-km pressure oil pipeline with a nominal diameter of 250 mm, running from the oil loading point in the Kamenny settlement to LACT (Lease Automatic Custody Transfer) unit No. 596, was commissioned in the third quarter of the current year. The early commissioning of the oil pipeline made it possible to reduce the cost of transporting oil-containing fluids (OCF) by truck.

In 2025, construction was completed and the first start-up complex of the Vostochno-Kamennoye field's oil treatment facility (OTF) was commissioned. It has a capacity of 500,000 tons of oil per year, 700,000 tons of liquids per year, and 42 million m³ of APG per year. The facility is currently being expanded to reach its design capacity of 1.5 million tons of oil per year.

As part of the strategic program to intensify production and diversify transportation infrastructure, a large-scale project for technical upgrading and reconstruction of the Krasnoleninsk Custody Transfer Point (LACT No. 596) was launched in 2025. The project is aimed at radically increasing the operational potential of the facility. The implementation of modern technological solutions and capacity expansion will increase the throughput of the custody transfer point from 0.769 million tons to a design capacity of 2 million tons per year. This project significantly contributes to establishing of a reliable technological headstart, ensuring the prospective growth of production volumes from the Vostochno-Kamenny field and improving the overall efficiency of the Company's hydrocarbon treatment and transportation system.

Optimization of electricity supply costs

In 2025, in collaboration with the contractor, an energy center comprisig seven GE Jenbacher 420 gas reciprocating generating units (GRUs) was commissioned at the Vostochno-Kamennoye field with a total installed capacity of 10 MW. Expansion of the energy complex 9 GRUs, with a toal installed capacity of 13 MW, is currently under way.

In 2025, together with the contractor, work began on expanding local generation capacity to supply electricity to the facilities of the Verkhne-Shapshinsky field. In 2026, an energy center with nine Liyu Gas Power LY1600 GRUs and a total installed capacity of 14.4 MW is scheduled to be commissioned. Daily power generation is expected to exceed 216 MWh.

To reduce electricity consumption costs in the promising new drilling area, the KP 407B Power Complex of the Tagrinskoye Field project was implemented jointly with the contractor. In 2025, an energy center, comprising seven Liyu Gas Power LY1600 GRUs, was commissioned, with a total installed capacity of 11.2 MW.

In 2025, as part of its expansion of local power generation, the Nizhnevartovsk branch commissioned a GE Jenbacher 320 GRU with a rated power of 1 MW. This initiative made it possible to supply electricity to the oil treatment facilities of the Nizhnevartovsk branch at a lower cost than grid-supply tariffs.

At present, a total of 83 GRUs are in operation at 15 RussNeft facilities, with a total installed capacity of more than 114 MW, including 14 Company-owned units with a total installed capacity of more than 14.8 MW. In 2026, the Company plans to commission an additional 15 GRUs with a total installed capacity of 23.3 MW as part of expansion projects at three facilities.

Optimization of production processes

In order to involve all the employees in optimizing production processes and costs, the Company launched in 2017 a program for collection, review and implementation of organizational and technical initiatives, covering all stages of idea handling, from submission to monitoring and employee incentives.

The Company and its branches established Technical boards for expert evaluation of ideas. Any employee may submit an idea for improving production process. After the in-depth development, the idea is submitted to the relevant Technical board of the branch/the Company, where a decision is made on its implementation. All approved ideas are then implemented and subsequently monitored.

During the reporting period, approximately 700 ideas were initiated and approved for implementation directly by employees involved in production, covering a large number of issues from reengineering of drilling processes and industrial construction to energy-efficiency measures and technological improvements in production operations.