Technology Development in Upstream Division of Gazprom Neft

Abstract

Management To enhance its technology management model and planning, the Gazprom Neft Company formulated a technology strategy, which focuses on moving from a “smart buyer” approach to a “strategic goal-setter” effort that emphasizes technological development through partnerships. The company is now focusing on a fast search, adaptation, and adoption of new technology strategy, which is a priority of the company. To gain that, it was necessary to realize our technological challenges in order to expand resource portfolio access and maximize invested assets. These efforts are based on the underlying principles of technological development created by the upstream division. The technological strategy is a vital element of the Technology Management System (TMS), an integrated system used by the company to manage the processes of search, selection, trial, introduction, and replication of technologies. Currently, about 80% of the entire project portfolio involves purchasing and adapting ready-made technological solutions. From Production to Implementation of Project Portfolio Know-how and competencies in technology management are the keys to profitability and competitiveness of the industry’s market players. All international oil companies (IOCs) have long realized the value of technology as key to determining economic performance and the degree of access to the resource base. Despite the fact that IOC investments in technological development continuously grow and reach billions of dollars, the focus on optimizing the technology projects portfolio increases. Forming a consolidated approach to technology management and maximizing return on investment have now become key to realizing the most value from technology. At the same time, as noted in the research, there is no direct correlation between shareholder return and expenditure on research and development (R&D). The implication is that a company’s ability to correctly identify priorities and challenges in technological development is more important than the amount of investment. In other words, “the way you invest is more important than how much you invest.”