Climate (physical) risks management for oil and gas companies: Rosneft case study

UDK: 658.382.3:622.276
DOI: 10.24887/0028-2448-2021-9-129-132
Key words: climate change, physical climate risks, oil and gas industry
Authors: D.A. Gershinkova (Russian Hydrometeorological Society, RF, Moscow), D.N. Chromov (Rosneft Oil Company, RF, Moscow)

The annual material damages from extreme weather events in the world are estimated at hundreds of billions of US dollars (in 2017 – 350 billion US dollars, in 2019 – 160 billion US dollars). Forecasts on climate changes indicate an increase in the frequency and scale of extreme weather events in the future. This article reviews the existing climatic (physical) risks for the oil and gas industry in Russia using the example of Rosneft Oil Company and potential adaptation measures to climate change. The study resulted in finding about 15 hazardous weather events and about 30 threshold values of hydrometeorological parameters that are taken into account in the Company's production activities. More than half of them are related to the temperature schedule – the range of restrictions is from -55 to 50 °С. Economic damage from the impact of weather and climatic factors is associated with harm to the health of the employees, forced downtime, changes in delivery terms, equipment breakdowns, destruction of infrastructure, etc. The Company applies minimum 150 regulations taking into account weather conditions at production work.  At the end of 2020, Rosneft developed a Carbon Management Plan until 2035. Within the framework of the Plan, a separate section is devoted to measures for adaptation to physical climate risks, identified according to recommendations of Task Force for Climate Related Disclosure. The company assumes the organization of comprehensive monitoring of all natural environments. Based on this, it is planned to develop a forecast model of changes, as well as a methodology for assessing damage from the implementation of physical risks of climate change. Then, a corporate asset adaptation plan will be developed, which is subject to regular updating, and appropriate risk reduction measures will be taken.

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