Largest Energy Transaction between India and Russia - 10year deal between India based Reliance Industries and Russia based Rosneft Company!!
At a time when Middle Eastern oil producers like Saudi Arabia are trying a stake in India`s rapidly growing energy economy, a Russian based firm has struck a deal with Indian giant Reliance Industries. This has caught the attention of many now.
The Russian company Rosneft has struck a 10 year long deal with Indians giant Reliance Industries. As per the deal, the Russian Rosneft would have to supply 500000 barrels per day of crude oil to Reliance Industries. The sensational piece of information is that this is the largest energy transaction between India and Russia. Information collected is that this deal is worth 13billion USD annually. It would account for 0.15percent of global oil supply
It is a known fact that Russia has been reeling under the western sanctions over its invasion of Ukraine. Truth is that India has emerged as the biggest importer of Russian crude oil after the EU sanctioned Russian oil in the wake of Ukraine invasion in the year 2022. It is noteworthy that Indian oil companies have been reaping the benefits of cheap Russian crude oil.
Challenge for Middle East based oil producers:
Middle Eastern oil manufacturers such as Saudi Arabia are now facing a huge challenge due to this 10 year deal between Reliance Industries and Rosneft. It is learnt that according to the sensational deal Rosneft would supply 20-21 Aframax sized (80,000 to 100,000 metric tons) cargoes of different Russian crude grades plus 3 cargoes of fuel oil every month to the Gujarat Jamnagar based Reliance refining complex. To adapt to the market dynamics, pricing and volumes would be reviewed annually. In the board meeting that took place in November 2024 at Rosneft, this deal was discussed and approved. From January onwards, supply would begin and would go on for another 10 years.
