Rosneft, Indian Oil sign deal for increasing oil trade

30 Mar 2023 , 08:10 AM

Rosneft, the largest oil producer in Russia, and Indian Oil Corp., the largest refiner in India, have reached a long-term agreement to significantly expand oil supplies and diversify oil grades sent to India. Igor Sechin, CEO of Rosneft, reportedly signed the contract while on business in India, according to the company.

On his tour to India, Rosneft Oil Company CEO Igor Sechin met with top government officials as well as executives from some of the nation’s biggest oil and gas firms.

A long-term agreement to significantly boost oil supply as well as diversify the grades to India was inked by Rosneft Oil Company and Indian Oil Company during the trip. The contract was signed by Shrikant Madhav Vaidya, Chairman of Indian Oil Corporation Ltd., and Igor Sechin, CEO of Rosneft Oil Company. They also talked about the potential for making payments in local currency as well as other measures to increase Rosneft Oil Company’s and Indian businesses’ cooperation throughout the whole energy value chain.

The CEO of Rosneft also spoke about the current status of joint projects being carried out by Rosneft and its Indian partners, such as Sakhalin-1, Taas-Yuryakh, and Vankorneft.

Russia has become one of India’s top 5 commercial partners, mostly due to a rise in oil imports.

Since 2016, Indian firms have owned 49.9% of Rosneft subsidiary JSC Vankorneft (ONGC Videsh Ltd., Oil India Ltd, Indian Oil Corporation, and Bharat Petroresources). 

As one of Rosneft’s largest assets in Eastern Siberia, Taas-Yuryakh Neftegazodobycha, is also owned by a group of Indian businesses (Oil India Limited, Indian Oil Corporation, and Bharat Petroresources).

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