Energy co-operation discussed between Russia and India

  • Sep 18, 2019
  • Energy Global

On 17 September, the Rosneft delegation led by the Chairman of the Management Board and CEO, Igor Sechin visited New Delhi to meet the Honourable 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 co-operation between the President of Russia, Vladimir Putin, and the Honourable Prime Minister of India, Narendra Modi, at the Eastern Economic Forum in Vladivostok.

During the course of the visit, the parties discussed important co-operation 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 US$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 co-operation 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 bilateral co-operation 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.