Deliveries of “black gold” to India will increase significantly

The goal of increasing trade between Moscow and New Delhi was achieved ahead of schedule

India, which at the end of last year became one of Russia’s main allies in the fuel sector, is going to increase the purchase of hydrocarbons from domestic producers. Rosneft and Indian Oil Company signed an agreement on a significant increase in energy exports, as well as on the diversification of “black gold” grades.

The agreement was signed during a working trip of Rosneft CEO Igor Sechin to India. During the visit, the head of the domestic mining holding held meetings with representatives of government departments, as well as with the heads of a number of the largest oil and gas companies in India. In particular, Sechin met with Indian Oil and Natural Gas Minister Hardeep Puri, in whose presence a new supply contract was signed.

The parties discussed issues of expanding cooperation along the entire technological chain. At the same time, special attention was paid to the implementation of joint projects of the Russian company and Indian partners, including Sakhalin-1, Taas-Yuryakh and Vankorneft. In addition, the issue of the possibility of mutual settlements in national currencies was raised.

The parties noted a significant increase in trade between Moscow and New Delhi. According to the Indian Ministry of Trade and Industry, for the first time in history, our country has entered the top five business partners of a South Asian power. The volume of trade between the states in 2022 amounted to $38.4 billion. “Thus, the goal set by the leaders of our countries to increase trade to $30 billion by 2025 has been achieved ahead of schedule,” Igor Sechin said.

The company is actively developing an integrated format of cooperation with Indian partners – from production to oil refining and the sale of petroleum products. Since 2016, Indian ONGC Videsh Ltd., Oil India Limited, Indian Oil Corporation and Bharat Petroleum have owned 49.9% of Rosneft’s subsidiary Vankorneft JSC. This enterprise is developing the Vankor oil and gas condensate field. In addition, a consortium of Indian companies (Oil India Limited, Indian Oil Corporation and Bharat Petroresources) owns 29.9% in the Taas-Yuryakh Neftegazodobycha enterprise, which develops the Central Block and the Kurungsky license area of ​​the Srednebotuobinskoye field.

According to Deputy Prime Minister Alexander Novak, deliveries of Russian oil to India increased by 22 times last year. Our country came out on top in the export of “black gold” to the South Asian state. In December, our country’s share of Indian crude oil imports exceeded a quarter, while back in 2021 it was only about 2%. Thus, India has displaced Europe as the main buyer of oil from Russia, supplied by sea.