An Analysis of Comprehensive Solutions Aimed to Optimize Costs and Increase Oil Production Efficiency of Active Producing Wells (A Case Study of Gazpromneft-Khantos LLC)

As part of a large-scale business transformation, Gazprom Neft is implementing new approaches to enhance economic efficiency. One of these approaches is the Renovation program, aimed at maximizing the profitability of the active producing well stock. This article describes the results of the application of this program to improve the economic efficiency of the oil production at Gazpromneft-Khantos. The key feature of projects included in the Renovation program is that their goals and key performance indicators are based not on the previous results, but on the estimated potential. This methodology consists of several steps: a detailed analysis of profitability determinants, identification of improvement potential, proposal of enhancement hypotheses, elaboration of particular improvement measures, and practical testing of the prepared business cases. In the Renovation program, project management is entrusted to cross-functional teams—core teams consisting of specialists in Geology, Reservoir Engineering, Petroleum Production, Production Engineering, Energy Management, Economics, and IT, competent to solve non-standard tasks in a timely and comprehensive manner and without attracting external funding, which gives a definite competitive advantage. Improvements, proposed and introduced by an assigned Renovation project team, will enable the potential-driven growth of the profitability of Gazpromneft-Khantos in the period of 2021–2030. The article gives an overview of cost-saving cases pertaining to various areas of oil production: Geology and Reservoir Engineering, Energy Efficiency, Oil Production Technologies, Well Interventions and Hydraulic Fracturing, and Oil Production Chemicals.