New Delhi, India: On September 17th, the Rosneft delegation led by the Chairman of the Management Board and CEO, Igor Sechin visited New Delhi to meet the Honorable Minister of Petroleum and Natural Gas, Government of India, Dharmendra Pradhan. The purpose of this visit was to develop further the agreements reached during the discussions on energy cooperation between the President of Russia Vladimir Putin and the Honorable Prime Minister of India Narendra Modi at the Eastern Economic Forum in Vladivostok.
During the course of the visit, the parties discussed important cooperation subjects including energy security in the region in view of the recent attacks on the production and refining facilities of Saudi Aramco. A special focus was made on the increase of supplies to Indian refineries. The current joint projects were also reviewed specifically Sakhalin-1, Taas Yuryakh and Vankor cluster where the consortium of Indian companies has a 49% stake in the Vankor field. Both parties reiterated their interest in a potential participation of the Indian partners in the Vostok oil project.
Another area of discussion was the plan of the consortium of investors including Rosneft for the further development of Nayara Energy. The consortium is reviewing an option of a two-fold increase of the refining throughput at the Vadinar Refinery. In the first stage, the consortium commits to investment of USD 850 million towards the building of a petrochemical unit in Vadinar within two years. The consortium is also planning to expand Nayara Energy’s retail presence, which currently is the fastest growing pan-India fuel retail network with over 5300 retail outlets across the country.
The parties agreed to intensify their cooperation aimed at the strengthening of energy security in India and supplying of high-quality feedstock and crude oil products to Indian customers. The focus was made on bi-lateral cooperation and the establishment of an efficient energy bridge based on the vertical integration concept. This includes participation of the Indian partners in production projects and investments in refining as well as the joint operations on the global and regional markets.
Notes for editors:
At the Eastern Economic Forum in Vladivostok, the leaders of Russia and India underscored the immense potential of mutual cooperation in oil and gas sector. Rosneft has been at the forefront of this collaboration and the company’s investment into Nayara Energy, the largest foreign direct investment made in India, along with other consortium partners, is a testament of this commitment.
Rosneft has been actively developing an integral format of cooperation with the Indian partners involving the whole process chain from production to oil refining and marketing of oil products. Since 2016 the Indian companies ONGC Videsh Ltd., Oil India Limited, Indian Oil Corporation and Bharat Petroresources own 49.9% of Vankorneft subsidiary. This company is located in Krasnoyarsk province and is developing Vankor oil and gas condensate field - the largest among the fields that were discovered in Russia in the past twenty five years.
Also, a consortium of Indian companies (Oil India Limited, Indian Oil Corporation and Bharat Petroresources) owns 29.9% of the company Taas Yuryakh Neftegazodobycha which holds licenses for the areas of the Central Block of Srednebotuobinskoe Field and Kurungskiy license area (the other shareholders are Rosneft and BP). Production of oil and gas condensate here in 2018 was 2.9 mln tons which is more than 2 times higher versus 2017.
Since 2001 the Indian company ONGC Videsh Ltd is a shareholder of Sakhalin-1 Project (the other shareholders are Rosneft, ExxonMobil and the Japanese company Sodeco). In 2018 Sakhalin-1 project produced the total of more than 11.63 mln tons of oil and condensate. About 2.48 bcm of gas was supplied to the customers.
Rosneft owns the main stock of shares (49.13%) of the Indian company Nayara Energy that includes world class assets such as refinery in Vadinar with a 20 mtpa capacity. This refinery is the second largest in India and is one of the most technologically advanced in the world. Nayara Energy business also includes a deep-water port which can harbor super large VLCC class tankers and one of the largest retail networks in India now comprising 5300 gas stations.
Realization of the Vostok Oil Project will enable development of the unique resource potential of the Arctic Cluster. It is planned that the project will incorporate the assets of Vankor group of fields (including Vankor, Suzun, Tagul and Lodochnoe fields), Payakha group of fields, West-Irkinskiy license area as well as a number of other high-potential exploration projects in Krasnoyarsk province.
By 2030 the cluster oil production might come to 100 million tons which will allow to fulfill the May order of the Russian President Vladimir Putin on securing cargo throughput for the Northern Sea Route.
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