Russian oil and gas giant Rosneft today signed a contract with India’s largest fuel retailer Indian Oil Corporation (IOC) for supply of 2 million tonne (MT) crude oil to India by end 2020, Rosneft said in a statement.
“Rosneft Oil Company and Indian Oil signed a contract to supply up to 2 MT of oil to India via the port of Novorossiysk by the end of 2020,” it said. This would be the first such contract signed by a state-owned oil marketing company with Rosneft.
Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) are also interested in signing annual crude deals with Rosneft, ET reporter earlier this month.
The signing took place during the visit of Igor Sechin, Chief Executive Officer (CEO) of Rosneft to New Delhi. Sechin also held a meeting with oil minister Dharmendra Pradhan. The Rosneft CEO expressed his company’s interest in acquiring BPCL, a news report said.
Rosneft and Trafigura led consortium already own 49.13 per cent stake in Nayara Energy (formerly Essar Oil Limited). Nayara owns and operates 20 million tonnes per year refinery at Vadinar in Gujarat and also owns more than 5,600 petrol pumps in the country.
“An important subject of talks between Sechin and Pradhan was the issue of providing Indian consumers with quality crude and petroleum-based products, including the increase in Russian oil supplies to India.
During the meeting, the parties discussed the ongoing joint projects of Rosneft and Indian companies, including Sakhalin-1, Taas-Yuryakh, the Vankor cluster (a consortium of Indian companies owns 49% in the Vankor cluster field), Far East LNG, and Nayara Energy,” Rosneft said in a statement.
According to Rosneft, a separate topic of discussion was held regarding Indian companies’ participation in implementing the Vostok Oil project located in the North of Russian Krasnoyarsk Territory.