ExxonMobil and Rosneft to Cooperate in Carbon Management
IRVING, Texas and MOSCOW, Russia – ExxonMobil and Rosneft have signed a Memorandum of Understanding to cooperate on the assessment of lower-carbon technologies to reduce greenhouse gas emissions from their operations. The companies will consider the prospects of new projects initially focused on carbon capture and storage (CCS) and the development of lower-carbon fuels, such as hydrogen and ammonia.
ExxonMobil and Rosneft to Cooperate in Carbon Management
The MOU continues the cooperation between the two companies and signals their intent to jointly develop and implement lower-carbon projects, as well as exchange their respective experience and technological solutions in promising areas.
ExxonMobil is an industry leader in CCS technology. The company has an equity share in about one-fifth of global CO2 capture capacity and has captured approximately 40 percent of all the captured anthropogenic CO2 in the world. Earlier this year, ExxonMobil established its Low Carbon Solutions business, and is currently evaluating multiple new CCS opportunities around the world that have potential to be commercially viable with supportive policies. The business is also evaluating strategic investments in biofuels and hydrogen to bring those lower-emissions energy technologies to scale for hard-to-decarbonize sectors of the global economy, including heavy transportation and industrial manufacturing.
CCS is the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere and injecting it into deep underground geologic formations for safe, secure and permanent storage. The International Energy Agency projects CCS could mitigate up to 15% of global emissions by 2040, and the U.N. Intergovernmental Panel on Climate Change estimates global decarbonization efforts could be twice as costly without wide-scale deployment of CCS.
ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. To learn more, visit exxonmobil.com and the Energy Factor.
Rosneft is a member of the UN Global Compact, thus confirming its commitment to the highest principles of sustainable development. Rosneft publishes details of its ESG activities annually in its sustainability reports.
In 2020, the Company developed an Environmental Vision, which, along with the 2035 Carbon Management Plan, has become a key component of Rosneft’s long-term environmental agenda, defining the basic principles of its environmental activities.
The Environmental Vision combines three priority areas as follows:
- carbon management,
- biological diversity preservation, and
- environmental protection activities (water and air protection, land remediation, industrial waste management).
Rosneft shares and actively supports international and national climate change goals. In 2020, Rosneft was the first Russian oil and gas company to set climate targets through 2035 as part of its Carbon Management Plan. The plan includes:
- Prevention of direct and indirect greenhouse gas emissions of 20 million tonnes CO2-equivalent.
- A 30% reduction in the intensity of direct and indirect emissions in oil and gas production.
- A methane emission rate below 0.25%.
- Zero routine flaring of associated gas.
The Carbon Management Plan also envisages zero routine flaring of associated petroleum gas. This indicator has already reached the target 95% at some of Rosneft’s subsidiaries, including Samotlorneftegaz, RN-Vankor, RN-Purneftegaz, Kharampurneftegaz, North Chaivo, Bashneft Dobycha, Sorovskneft, etc.
The Company is developing cooperation in carbon management and sustainability with foreign partners. Rosneft entered into cooperation agreements with BP, Baker Hughes, and Ministry of Economy, Trade and Industry of Japan (METI) to assess, among other things, the prospects for decarbonization (the use of CO2 capture, utilization and storage technologies).
The Company’s activities are highly praised by the global investment community that considers socially responsible investments a long-term trend. FTSE Russell, a division of the London Stock Exchange, has confirmed that Rosneft is a member of the FTSE4Good Index Series - in terms of its indicators, the Company is ahead of 90% of the participants in the international oil and gas industry rating of the Industry Classification Index (ICB supersector).
Rosneft is recognized as the leading Russian oil and gas producer in a number of international ESG ratings, including Refinitiv and Bloomberg. In April 2021, the international agency Sustainalytics twice improved the Company’s position in its rating. With a score of 33.9, Rosneft became the best among Russian oil and gas companies.
Statements of future events, investment opportunities or conditions in this release are forward-looking statements. Actual future results, including project plans, timing, volumes, and costs; future relative reductions in emissions and emissions intensity; carbon capture, hydrogen, and biofuel deployment and results; and the impact of operational and technology efforts could vary depending on any changes in plans or objectives upon final project approvals; the ability to execute operational objectives on a timely and successful basis; the ability to obtain and timing of required governmental and other third party consents; the development and pace of supportive market conditions and national, regional and local policies relating to carbon capture, hydrogen, biofuels, and emission reductions; changes in laws and regulations including laws and regulations regarding greenhouse gas emissions, carbon costs, and taxes; the outcome of commercial negotiations; the effectiveness of cooperative efforts to develop technologies and projects; trade patterns and the development and enforcement of local, national and international mandates and treaties; unforeseen technical or operational difficulties; the outcome of research efforts and future technology developments, including the ability to scale projects and technologies on a commercially competitive basis; changes in supply and demand and other market factors affecting future prices of oil, gas, and petrochemical products; and other factors discussed in this release and under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at exxonmobil.com.