In a move that suggests Moscow’s interest in enhancing economic relations with India, Govind K Satish, a former director of the Indian Oil Corporation (IOC), has been appointed to the board of directors of the Russian oil giant Rosneft.
Rosneft announced the addition of three new members to its 11-person board of directors, including Govind K Satish. Satish, who served as the director for commercial development at IOC until 2021, will become the first Indian to join Rosneft’s board of directors.
This appointment highlights the growing importance of Indian expertise and collaboration in the global energy sector, fostering closer ties between Russia and India in the field of oil and gas.
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- During the annual general meeting on June 30, Rosneft announced the election of a new board consisting of 11 members, while Igor I Sechin will continue as the CEO and chairman of the company’s management board.
- Rosneft has joint ventures with Satish’s former company in the Russian oil and gas sector. It also supplies crude oil to the Indian Oil Corporation (IOC) and other Indian companies. Additionally, Rosneft has started transporting naphtha to Gujarat refineries.
- In March of this year, Rosneft signed a long-term agreement with IOC to increase oil supplies and diversify India’s oil grades significantly.
- Recent data from the Ministry of Commerce and Industry of India indicates that Russia has become one of India’s top five trading partners for the first time in history, with trade volume reaching $38.4 billion in 2022.
- As a result, the target set by the leaders of both countries to increase turnover to $30 billion by 2025 has been achieved ahead of schedule. This demonstrates the growing economic cooperation between Russia and India.
Govind K Satish’s Appointment
Satish’s tenure at IOC began on September 1, 2016, and during his time there, he held the position of chairman of Indian Oil Adani Gas Pvt Ltd. This joint venture between IOC and the Adani Group aimed to distribute compressed natural gas (CNG) and piped cooking gas. The collaboration propelled the Adani Group to become a major player in the city gas market, solidifying its position as the largest operator in this sector.
The appointment of Govind K Satish holds significance as Rosneft aims to expand its business with Indian companies, particularly in the sale of liquefied natural gas (LNG). Satish brings extensive knowledge of the Indian oil and gas industry and expertise in selling petroleum products, petrochemicals, LNG, and international trade.
Rosneft is a Russian integrated energy company headquartered in Moscow. It is the third-largest Russian company and the second-largest state-controlled company (after Gazprom) in Russia in terms of revenue. Internationally, it is one of the largest oil companies, ranking 24 in terms of revenue. In the 2020 Forbes Global 2000, Rosneft was ranked as the 53rd-largest public company in the world. The company operates in more than twenty countries around the world.
Rosneft specializes in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products. The company is controlled by the Russian government through the Rosneftegaz holding company.
- The company’s CEO is Igor Sechin, a close ally of Russian President Vladimir Putin.
- Rosneft is the largest taxpayer in Russia.
- The company has been involved in a number of major oil and gas projects, including the Sakhalin-1 and Sakhalin-2 projects in the Russian Far East.
- Rosneft is a major sponsor of sports teams and events, including the Russian national football team and the Sochi Winter Olympics.
India and Rosneft Cooperation
Rosneft has been actively fostering collaboration with Indian partners across the entire oil processing chain, encompassing extraction, refining, and oil product sales. Since 2016, Indian companies such as ONGC Videsh Ltd., Oil India Limited, IOC, and Bharat Petroresources have collectively held a 49.9% ownership stake in Rosneft’s subsidiary, JSC Vankorneft. Located in the Krasnoyarsk Territory, JSC Vankorneft is responsible for the development of the Vankorskoye oil and gas condensate field, which stands as one of the largest fields discovered and brought into production in Russia over the past 25 years.
Furthermore, an Indian consortium comprising Oil India Limited, IOC, and Bharat Petroresources holds a 29.9% ownership interest in Taas-Yuryakh Neftegazodobycha. This consortium is involved in the development of the Central Block and the Kurungsky license block of the Srednebotuobinskoye field, which represents one of Rosneft’s significant assets in Eastern Siberia.
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