Rosneft, Russia's largest oil producer and Indian Oil Corp, India's largest refiner, have inked a long-term deal to significantly increase oil supplies and diversify oil grades supplied to India, Rosneft announced on Wednesday. Rosneft CEO Igor Sechin signed the agreement during a business trip to India, according to the firm.
During his visit to India, Igor Sechin, Chief Executive Officer of Rosneft Oil Company, met with Indian government officials as well as the heads of some of the country's biggest oil and gas firms.
During the trip, Rosneft Oil Company and Indian Oil Company signed a long-term agreement to significantly boost oil supplies to India and diversify the grades. The deal was signed by Igor Sechin, CEO of Rosneft Oil Company and Shrikant Madhav Vaidya, Chairman of Indian Oil Corporation. They also discussed ways to expand cooperation between Rosneft Oil Company and Indian companies across the full energy value chain, including the possibility of making payments in national currencies.
The CEO of Rosneft also spoke about the current implementation of joint projects between Rosneft and its Indian partners, such as Sakhalin-1, Taas-Yuryakh and Vankorneft.
Russia has risen to become one of India's top five trading partners, owing mainly to an increase in oil imports.
Since 2016, Indian firms (ONGC Videsh, Oil India, Indian Oil Corporation and Bharat Petroresources) have owned 49.9 per cent of Rosneft's subsidiary JSC Vankorneft. This business is based in Krasnoyarsk Territory and is responsible for the development of the Vankorskoye oil and gas condensate field, which is one of the largest fields discovered and brought online in Russia in the last 25 years.
A consortium of Indian companies (Oil India Limited, Indian Oil Corporation, and Bharat Petroresources) also owns 29.9 per cent of Taas-Yuryakh Neftegazodobycha, which develops the Srednebotuobinskoye field, which is one of Rosneft's largest assets in Eastern Siberia.