Rosneft and Trafigura co-operate to verify and identify opportunities to reduce carbon emissions
Singapore, 28 October 2021 – During the XIV Eurasian Economic Forum in Verona, Rosneft and Trafigura Pte. Ltd. (“Trafigura”) signed a co-operation agreement to assess, verify and identify opportunities to reduce greenhouse gas emissions associated with the production and transportation of Rosneft’s export crude oil.
Under the terms of the agreement, the two companies will work together to secure independent third-party verification of the carbon intensity of Rosneft’s crude oil exports from production to the point of delivery to each of Russia’s three principal export ports of Novorossiysk, Primorsk and Ust-Luga.
This independent verification will take place using global benchmarks and accepted international methodologies. In 2020, the volumes exported through these ports accounted for around 20 percent of Rosneft’s total crude oil exported annually and serve as a critical supply source for international crude oil markets.
Verified carbon intensity data for Rosneft’s export oil will provide customers with greater transparency and certainty over the associated upstream greenhouse gas emissions associated with crude production and transportation. It will also enable Rosneft and Trafigura to identify and progress further opportunities to reduce greenhouse gas emissions along the value chain for Urals crude oil.
“As we transition to cleaner sources of energy, oil will remain a vital component of the world’s growing energy needs for many years to come,” said Jonathan Kollek, President of Trafigura Eurasia. “We are pleased to be working with one of the world’s premier oil and gas producers to provide greater transparency of supply chain emissions to our customers. This agreement further represents Trafigura’s commitment to working with counterparties towards transparent reporting of and identifying opportunities to reduce emissions.”
Transparency and verification of upstream emissions is an important step in enabling supply chain participants to understand the full life cycle emissions of a commodity and work together to identify opportunities to reduce emissions.
For further information, please contact:
Trafigura Press Office: +41 (0) 22 592 45 28 or firstname.lastname@example.org
Notes to editors
Rosneft is the leader of the Russian oil industry and one of the largest publicly traded oil company in the world. The company's core activities include hydrocarbon prospecting and exploration, production of oil, gas and gas condensate, implementation of offshore field development projects, refining, sales of oil, gas and refined products in Russia and abroad.
Rosneft is the first Russian oil and gas company, which presented a comprehensive Carbon Management Plan-2035 with clear targets on greenhouse gas emission reduction. The plan includes:
- Prevention of direct and indirect greenhouse gas emissions of 20 million tonnes CO2-equivalent
- A 30 percent reduction in the intensity of direct and indirect emissions in the Upstream;
- Achievement of methane emission rate below 0.25 percent;
- Zero routine flaring of associated gas.
The Company is developing cooperation with foreign partners in the area of carbon management and sustainable development. Rosneft has signed cooperation agreements with BP, Equinor, ExxonMobil, Baker Hughes, and the Japanese Ministry of Economy, Trade and Industry (METI) to support its long-term emission reduction goals.
The global investment community, which views socially responsible investing as a long-term trend, gives high marks to the company's performance. FTSE Russell, a division of the London Stock Exchange, confirmed that Rosneft was included in the international FTSE4 Good Index Series. "Rosneft was recognized as the best Russian oil and gas company in a number of international ESG ratings - Refinitiv, Bloomberg. In April 2021, Sustainalytics international agency twice improved the Company's position in its rating. With a score of 33.9, Rosneft became the best among representatives of the Russian oil and gas industry. Rosneft was also the only Russian company included in the Top-100 ESG of Vigeo Eiris the Best Emerging Market Performers Ranking.
More information: www.rosneft.com
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables business division.
The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura’s Mining Group; and Galena Asset Management.
With circa. 850 shareholders, Trafigura is owned by its employees. Over 8,500 employees work in 48 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.