Digital transformation initiative launched by Gazprom Neft

By Tim Shea

Industry Trends

ARC has been tracking the growing number oil & gas companies taking concrete action, making investments and establishing C level executives charged with the mandate of developing and leading the respective company’s digital transformation strategy.  When we realized that many of the leading IOCs, NOCs and some of the independent E&P firms were establishing senior positions with the focus of spearheading digital transformation, we knew that is was “for real” and no longer just talk or “hype”.

Gazprom Neft placing its stake in the ground for digital transformation

A recent article highlighted how Gazprom Neft has joined this parade of companies and confirmed the digital transformation of its business as a priority area of focus, with the creation of a new Digital Transformation Directorate, to be headed by Andrei Belevtsev as chief digital officer (CDO).

The key objective of the Digital Transformation Directorate will be to create a single and inclusive system covering the company’s full digital strategy, directed at game-changing improvements to the operational efficiency of all business processes, as well as the development of the company’s own smart services.

Digital Transformation at Gazprom Neft
Source: Gazprom Neft


Commencing work in April 2018, the structural unit has now set about creating a long-term digital strategy for the company, to include plans for implementing new technologies, transforming organizational processes, and engendering a team culture in testing IT solutions. The new directorate will approve the company’s “road map” on digitalization, assess opportunities for synergies across the most viable projects, and will be involved in accelerating corporate change and developing digital competencies throughout the business.

Gazprom Neft’s plans include developing its own IT platforms for creating new information flows and datasets, and developing predictive analysis tools, with the requirements and architecture for a prototype platform already being worked out. Gazprom Neft plans also to begin developing new products and services based around the implementation of cutting-edge digital technologies.

Gazprom Neft is well on the way on its journey towards operational excellence

Gazprom Neft has already implemented a range of successful projects over the past two years, including implementing blockchain technologies, AI systems, predictive analysis systems, and the IIoT. The creation of digital twins for wells, drilling sites and refining facilities has also proved highly effective. The Digital Transformation Directorate will be responsible for collating information and data on the company’s projects and its experience in implementing cutting-edge technologies, and will determine strategies for their further development.

IIoT-enabled solutions are being deployed across the entire value chain

Gazprom Neft CEO Alexander Dyukov commented, “Digital transformation is creating further competitive advantages for our company, further enhancing its technological leadership of the industry. We are already using digital technologies at every stage of the production chain; in upstream, refining and in sales. Further developing this crucial and integral area of activity requires a holistic and inclusive strategy, together with the identification of new — and breakthrough — opportunities for utilizing digital technologies throughout all areas of our business."

ARC applauds Gazprom Neft for taking this action and takes every opportunity to shout such “case studies” from the rooftops since we are convinced that the only oil & gas companies that will survive the increasingly more challenging and dynamic energy market in the future will be those that fully embrace digital transformation, making it part of their culture and the DNA of the operations.

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