IndianOil, OIL and BPRL sign agreement with Rosneft

For China and India, the deal would give a firm foothold in the largest energy exporter.

Russian press service Itar-TASS said both sides would discuss sale of the RD-180 rocket engine, a space booster whose sale to China would irritate the USA government, according to Russian Deputy Prime Minister Dmitry Rogozin. On Friday (June 17), Indian Oil Minister Dharmendra Pradhan said one could not be ruled out.

Going on: “While Russia’s oil trade with India, by contrast, has been minimal, that’s starting to change now that the country is replacing China as the center of global growth”.

A consortium led by state-run Indian Oil Corporation (IndianOil), Oil Corporation (IOL) and Bharat PetroResources (BPCL) has signed an agreement with Russian oil producer Rosneft to acquire 23.9% stake in Vankorneft project.

Competition for Asian markets, which are relatively new for Rosneft, is much tougher and the company is working actively to expand its presence in the region, Sechin said, praising new contracts his company signed during the St Petersburg International Economic Forum last week.

The Kremlin has also pivoted more toward Asia amid geopolitical strains brought on by crises in Ukraine, through which most of the Russian natural gas for Europe heads. India would receive about 11 million tonnes a year from the project after that purchase, he said.

“With the closure of the Vankor deal, IOC’s equity oil portfolio will go up by 1.6 million tonnes per annum”, the statement said.

Russian President Vladimir Putin reportedly plans to sell a 19.5 percent stake of state-owned oil company Rosneft to Indian and Chinese companies due to difficulties in meeting expenditure commitments prior to his presidential candidacy before elections that will be held in less than two years.

But he said he had not received any instructions from the company’s key owner, the government, to hold talks on a potential sale.

Russia’s Economy Minister Alexei Ulyukayev stated recently that he expected a deal to be made sometime this year.