Rosneft and bp agree to cooperate on carbon management and sustainability

Rosneft Oil Company and bp have signed a Strategic Collaboration Agreement focused on ‎supporting carbon management and sustainability activities of both companies. The agreement ‎builds on years of partnership between the two companies and formalises key elements of their ‎collaboration on sustainability and work to identify carbon reduction activities and low carbon ‎opportunities. 

Based on their longstanding partnership and taking into account the profound changes shaping the ‎global energy transition to deliver more energy with less carbon, Rosneft and bp have agreed to ‎cooperate in identifying and developing new low carbon solutions and programmes that will support ‎their shared sustainability goals. The companies also intend to join efforts in aligning with developing ‎industry methodologies and standards on carbon management, including methane reduction ‎initiatives and energy efficiency applications.‎

“Rosneft and ‎bp are united not only through the longstanding successful partnership in various areas but also in ‎the intention to leverage this experience in future prospective projects outlined in this agreement.”‎ Igor Sechin, chief executive officer, Rosneft  

Rosneft and bp will also jointly evaluate new projects envisaging the use of renewables, ‎opportunities for carbon capture, utilisation and storage (CCUS), as well as developments for ‎hydrogen.

The companies intend to work together on opportunities for low carbon solutions in downstream ‎businesses, including the development of advanced fuel as well as evaluate the potential for the ‎development of natural forest sinks and trading of forest carbon-offsets credits. The companies will ‎cooperate in sustainable development and social investment, including biodiversity.

“We’ve been partners with Rosneft for many years ‎now and we learn a great deal from each other. That’s important, and I believe that this agreement ‎can be an important catalyst for progress.”‎ Bernard Looney, chief executive officer, bp

Commenting on the agreement signed, Rosneft chief executive officer Igor Sechin said: “Rosneft and ‎bp are united not only through the longstanding successful partnership in various areas but also in ‎the intention to leverage this experience in future prospective projects outlined in this agreement. ‎Joint efforts of our two companies, as the world energy industry leaders, will not only strengthen our ‎corporate aims in sustainable development, but will also provide a significant contribution to ‎overcoming the challenges the industry and the society face in the climate action and the satisfaction ‎of growing global economy demand for energy resources. This is necessary for balanced social and ‎economic development and life quality improvement.”‎

bp chief executive officer Bernard Looney said: “We’ve been partners with Rosneft for many years ‎now and we learn a great deal from each other. That’s important, and I believe that this agreement ‎can be an important catalyst for progress. We both believe in the power of partnership and look ‎forward to bringing together the best of Rosneft and bp to develop low carbon solutions and drive ‎down emissions.”‎

Notes to editors

Rosneft

Rosneft was one of the first Russian members and has been a member for over ten years of the ‎United Nations Global Compact, the largest initiative considering sustainable development. The ‎Company was the first to reaffirm its strategic commitment to the UN Sustainable Development ‎Goals in 2018. Climate action is one of the priority goals for the company.

Rosneft was also the first company in Russia to prepare the comprehensive 2035 Carbon ‎Management Plan featuring clear targets for reducing greenhouse gas emissions. The plan was ‎reviewed by the company’s board of directors in December 2020 and stipulates the following:‎

1. prevention of direct and indirect greenhouse gas emissions of 20 million tonnes CO₂-equivalent
2. a 30% reduction in the intensity of direct and indirect emissions in oil and gas production‎
3. a methane emission rate below 0.25%‎
4. zero routine flaring of associated gas.‎

The company’s activities are highly praised by the global investment community that considers ‎socially responsible investments a long-term trend. In late 2020, FTSE Russell, a unit of the London ‎Stock Exchange, verified Rosneft’s entering the global FTSE4Good Index Series. Rosneft has been ‎recognised as the leading oil and gas company in Russia by several international ESG ratings, such ‎as Refinitiv, Bloomberg, Corporate Human Rights Benchmark, and has been ranked among leaders ‎in the Climate and Water Resources international ratings of CDP.‎

bp

bp’s ambition is to become a net zero company by 2050 or sooner and it has set out a strategy ‎intended to deliver this.

Within 10 years, bp aims to have increased its annual low carbon investment 10-fold to around $5 ‎billion a year, building out an integrated portfolio of low carbon technologies, including renewables, ‎bioenergy and early positions in hydrogen and CCUS.

By 2030, bp aims to have developed around 50GW of net renewable generating capacity – a 20-fold ‎increase from 2019 – and to have doubled its consumer interactions to 20 million a day.

Delivery of resilient and focused hydrocarbons will remain one of the foundations of the strategy. bp ‎aims to drive capital and cost productivity up and emissions down completing its ongoing series of ‎major projects, decreasing capital intensity, and to continue to high-grade its portfolio, resulting in ‎significantly lower but more competitive production and refining throughput.

By 2030, bp aims for emissions from its operations and those associated with the carbon in its ‎upstream oil and gas production (addressed by Aim 1 and Aim 2 of bp’s net zero ambition) to be ‎lower by 30-35% and 35-40% respectively.‎