Digital Transformation

GRI 103-1

Currently, the oil and gas industry follows other capital intensive sectors to implement new opportunities for complex use of digital technologies. Zarubezhneft JSC acknowledges the competition challenges on the Russian and global markers in a long-term perspective (for decades ahead) and demonstrates its readiness for the necessary transformations. The Company excels competitors and is at the same level with the industry leaders For a number of priority processes having the highest effect on Zarubezhneft JSC business, such as reserves management, field development, oil and gas production, search and evaluation of new projects. The total level of maturity of key processes in Zarubezhneft JSC is sufficient for modifying business processes using digital technologies.

The Digital Transformation Strategy takes into account and comprehensively supplements the goals and objectives of the adopted strategic planning documents of Zarubezhneft JSC, including the corporate development strategy, Long-Term Development Program, and is closely linked to the innovative development program and the IT strategy of the Company.

In 2019, the Company successfully completed Stage 1 of the Digital Transformation Strategy. During implementation of Stage 1 of the Strategy, the Company overcame fragmentation of source information flows in all segments, which increased convenience and ease of the data use, ensured the fastest possible reception, processing and analysis of data, and outlined efficient data management mechanisms. Key outcomes of the first Stage of the Digital Transformation Strategy are as follows:

  • 93% of wells of Russian assets of the Company are equipped with telemetry ensuring real-time data transmission;
  • Five own software systems are developed in the area of the Company’s technological focus;
  • data exchange is implemented – 35 information systems of the Company are integrated with each other.

Priority focuses of Zarubezhneft JSC strategic development determined the composition of digital projects portfolio included in the Digital Transformation Program. In general, these are the key projects with the greatest impact on Zarubezhneft JSC business due to the introduction of digital solutions, as well as projects in the priority areas of technological and innovative development of the Company.

Zarubezhneft JSC has defined three key stages of digital strategic development.

The Digital Transformation Program includes four comprehensive projects:

  • digital field (improvement of production performance),
  • digital evaluation of new projects (accelerated and improved performance of entering new assets),
  • digital office (performance improvement of organization management business processes),
  • digital expertise of personnel (working with talents and use of advanced technologies to develop employees).

The highest priority areas for development and implementing end-to-end digital technologies at the second stage of the Strategy are machine learning technologies, big data processing, digital twins and artificial intelligence. In 2019, more than 10 projects were implemented, with at least 25 more projects of various scale planned for 2020 – from implementing digital solutions available on the market to creating own developments meeting the key trends of the Company development.