On February 3, 2004, V. V. Putin, the President of the Russian Federation, signed Decree No 137 on reorganization of Russian Foreign Economic Association State Enterprise Zarubezhneft into a Joint-Stock Company and retention of 100% of shares in the federal ownership. According to the Decree, the assets of RMNTK Nefteotdacha and industry institutes of both VNIIneft JSC and Giprovostokneft JSC were vested in Zarubezhneft. As a result, Zarubezhneft received its own design base, as well as innovation assets.
Strategic guidelines of innovative development of Zarubezhneft JSC are as follows:
- Development of an integrated system for the effective management of innovative projects;
- Improvement of the innovative projects portfolio profile by increasing the portion of breakthrough innovations;
- Making affiliated Research and Development Centers focused on completion of innovation tasks;
- Creation of an innovative environment, as well as of partnerships with leading research centers and oil and gas companies;
- Development of a system to commercialize inventions of Zarubezhneft JSC;
- Creation of the innovative environment within the Group;
- In 2013, the R&D funding corresponded to recommended values (0.3%); it is planned to increase this amount to 0.9% of Company’s revenues in 2017.
Objectives of Zarubezhneft JSC in the innovative development are as follows:
- Improvement of the efficiency of Company operations through the development of the innovation segment;
- Reduction of production costs through the use of new technologies;
- Establishment and enhancement of the Company’s status as an innovation and technology leader;
- Business process orientation from the perspective of innovative development;
- Growth of competence and provision of technology leadership of the Company on the following core competencies: production of tight and unconventional hydrocarbon reserves;
- Establishment of Zarubezhneft JSC as a high-tech energy company.
Execution of projects of the Program of Innovative Development is implemented with the participation of VNIIneft JSC as a research institute.