Equinor, Rosneft form CO2 management pact

Norway's Equinor and Russia's Rosneft have agreed to cooperate in carbon management, the companies said on September 29.

The pair will work together in developing low-carbon solutions and reducing the carbon footprint from their joint projects, they said, sharing knowledge in areas such as reducing flaring and methane emissions, energy efficiency and the reporting of greenhouse gas emissions. They will also consider opportunities in renewables, carbon capture utilisation and storage and low-carbon hydrogen.

Equinor is a key upstream partner of Rosneft in Russia. Together they are developing viscous oil at the North Komsomolskoye field in west Siberia and Domanik tight oil in the Volga-Urals area. Equinor also has a 49% interest in an exploration joint venture with Rosneft with rights to 12 licences in east Siberia.

Rosneft and other Russian oil and gas firms are under pressure to cut emissions from their operations to boost their environmental, social and governance (ESG) scores – an increasingly important metric for investors. The state-owned producer signed a similar pact on carbon management with BP in February.

Meanwhile Equinor, BP and other international oil companies invested in Russia are looking to minimise the climate impact of their operations in the country to ensure that their low-cost production there can remain in their portfolios while they pursue emissions targets.