India will be a growth driver of global energy demand, Igor Sechin, chief executive officer of Rosneft Oil Company recently said at the 24th St Petersburg International Economic Forum.
This comes against the backdrop of one of the world’s largest publicly traded oil company’ Asian pivot. India, as the world’ third largest oil importer has an important role to play in Rosneft’s recalibrated playbook, that has a low production cost of around $2.6 for every barrel of oil equivalent.
“Igor Sechin expressed his certainty that the plans of Prime Minister Narendra Modi to improve energy availability to every citizen of the country will make India the key growth driver of the global demand for energy resources,” according to a recent statement issued by Rosneft.
This comes at a time when India is leaning on its old energy partner Russia to cushion its consumers from price shocks, with the two countries exploring an approach to protect both the buyer and the seller from the sharp volatility in global prices as reported by Mint earlier. India is also eyeing more long-term crude oil contracts from Russia.
“Along with China, India will become another locomotive of the global demand recovery. According to IMF’s forecast, India will see a 7.7% GDP growth per annum over the next 5 years, while China’s GDP will grow by 5.8% per annum. Demand for energy resources will be growing at outstripping rates in both countries,” Rosneft added.