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PJSC Rosnef
Native name
ПAO «Росне́фть»
Public (PJSC)
Traded as MCXROSN
Industry Oil and gas
Predecessor Ministry of Oil and Gas (Soviet Union)
Founded 1993; 25 years ago (1993)
Headquarters Moscow, Russia
Key people
Gerhard Schröder (Chairman)
Igor Sechin (CEO)
Products Petroleum
Natural gas
Motor fuels
Revenue Increase US$64.749 billion (FY 2016)
Increase US$5.81 billion (FY 2016)
Owner Russian government through Rosneftegaz (ru) (50%)
BP (19.75%)
QHG Oil Ventures Pte. Ltd. (19.5%)
National Settlement Depository (10.38%)
Number of employees
261,500 (2014)[1]

PJSC Rosneft Oil Company (Russian: Росне́фть, tr. Rosnéft', IPA: [rɐsˈnʲeftʲ] stylized as ROSNEFT) is a Russian integrated energy company headquartered in the Russian capital of Moscow. It is specializing on exploration, extraction, production, refinement, transport, and sale of petroleum, natural gas, and petroleum products. The company is controlled by the Russian government through the Rosneftegaz (ru) holding company. Its name is a portmanteau of the Russian words Rossiyskaya neft' (Russian: Российская нефть - Russian oil).[2][3]

Rosneft was founded on 1993 as a state enterprise and later incorporated in 1995, attaining state-controlled gas and oil assets. Rosneft became Russia's leading oil company after purchasing assets of former oil company Yukos at state-run auctions, after acquiring OJSC TNK-BP in 2013, then-one of the largest oil companies of Russia, Rosneft became the world's largest publicly-traded petroleum company.[3][4]

Rosneft is the third largest company of Russia and the second-largest state-controlled company after Gazprom in Russia in terms of revenue (4,134 billion).[5] Internationally, it is one of the largest oil companies, ranking 24 in terms of revenue, the company operates in more than twenty countries around the world.[2][3]



Rosneft had played a major role in the history of Russia's oil industry, the first mentioning of the name Rosneft dates back to the late 19th century, where exploration of oil fields in Sakhalin began in 1889. Most of Rosneft's current assets were established during the Soviet era.[6]


Rosneft was established in 1993 as a unitary enterprise with assets previously held by Rosneftegaz, the successor to the Soviet Union's Ministry of Oil and Gas, during the early 1990s almost all Russian oil companies and refineries were extracted from Rosneft to form ten integrated companies. Later their number was halved as a result of acquisitions, on 29 September 1995, an Order of the Government of Russia №971 transformed Rosneft into an open joint stock company. In October 1998, the Russian government appointed Sergey Bogdanchikov as president, the company owned two obsolete refineries and several low-productive and poorly managed oil-producing assets. In the late 1990s, plans for Rosneft's privatization in Russia were made, but due to competition with equally influential pretenders they were not carried out.


In 2001, the company became Russia's official representative on projects with production sharing agreements; in 2003, Rosneft began oil production at the Aday block in the Atyrau Region near the Caspian Sea in Western Kazakhstan. In 2004 Rosneft had increased oil output from 98.56 million bbl (13.47 million tonnes) in 2001 to 148.26 million bbl (20.27 million tonnes). In the same year Rosneft agreed to merge with Gazprom but plans were discarded in May 2005, it is alleged that Bogdanchikov did not wish to take a lesser role in the integrated company answering to Gazprom CEO Alexei Miller.

Yukos auctions, 2004 and 2007[edit]

The Rosneft headquarters next to the Saint Sophia Church on the bank of the Moskva River

Starting in 2004, the Russian government organized a series of auctions to sell oil giant's Yukos assets, of which Rosneft won the majority, on 22 December 2004, Rosneft had purchased a then little known Russian oil company called Baikal Finance Group. Three days earlier, the previously unheard-of Baikal Group had purchased Yukos main asset Yuganskneftegaz (Yugansk) at a state-run auction for 9.35 billion dollars (6.9 billion euros), supposedly to satisfy tax debts. Many[who?] viewed this as a de facto nationalization of Yugansk. Andrei Illarionov, then a senior Putin economic advisor, denounced it as "the scam of the year".[7] With the addition of Yungansk Rosneft became Russia's second-largest producer of oil and gas by 2005, with an average output of 1.69 million bpd.

Major existing and planned natural oil and gas pipelines supplying Russian oil and gas to Europe.

In March 2007 Rosneft had announced it hoped to increase production from 80 million tonnes in 2006 to 103  million tonnes by the end of 2007, wanted to extract 140 million tonnes of oil by 2012 and become a global top three energy company.[8] In June 2007, Rosneft paid $731 million for the transportation assets of Yukos, which had declared bankrupt in August 2006 after three years of litigation over tax arrears.[9] In August 2007 Bogdanchikov said that although the Yukos acquisitions had increased Rosnefts debt to $US 26 billion, he planned to reduce debt to 30% of total assets by 2010 by tripling refining capacity and expand into China.[10]

2006 IPO[edit]

On 14 July 2006, Rosneft conducted one of the largest initial public offerings in financial history, after placing nearly 15% of its shares on the Russian Trading System and the London Stock Exchange, the offering raised USD 10.7 billion. Shares were priced at $7.55, resulting in Rosneft being valued at $79.8 billion. Rosneft achieved its objective largely by arranging bilateral deals with strategic investors, such as British Petroleum, Petronas and CNPC, which bought almost $2.6 billion worth of shares during the IPO. Three oligarchs invested over $1 billion each on the LSE, namely Roman Abramovich, Vladimir Lisin, and Oleg Deripaska. Critics of the deal included financier George Soros, who called on investors to boycott it on ethical grounds, and Andrei Illarionov, who called the deal illegal and "a crime against the Russian people," because none of the proceeds would go into the state budget, the British Financial Services Authority authorised the flotation of Rosneft shares despite an appeal from Yukos, saying that to allow the Rosneft IPO would be tantamount to facilitating the sale of stolen goods.


Arctic shelf deals with BP and ExxonMobil[edit]

Location of the EPNZ-1, EPNZ-2 and EPNZ-3 oil and gas areas in the Kara Sea

On 15 January 2011, Rosneft and British Petroleum (BP) announced a deal to develop the East-Prinovozemelsky field on the Russian arctic shelf between the Yamal Peninsula and Novaya Zemlya island.[11] As part of the deal Rosneft was to receive 5% of BP's shares, worth approximately $7.8 billion, as of January 2011 and BP would get approximately 9.5% of Rosneft's shares in exchange.[12] According to the deal, the two companies would create an Arctic technology centre in Russia to develop technologies and engineering practices for safe arctic hydrocarbons extraction.[13] AAR, which represents four billionaires of Russian origin and is BP's Russian partner in the TNK-BP joint venture, blocked the BP–Rosneft deal in international courts, arguing it breached earlier contracts between BP and AAR,[14][15] the TNK-BP partners had previously signed a shareholding agreement which stipulated that their Russian joint venture would be the primary corporate vehicle for BP's oil and gas operations in Russia.[16] On 30 August 2011, Rosneft announced that instead of BP the partner for EPNZ-1, EPNZ-2 and EPNZ-3 in the Kara Sea will be ExxonMobil; in exchange, subject to approval by U.S. regulators, in addition to a share in oil production in Russian fields, Rosneft was granted participation in U.S. fields in Texas and the Gulf of Mexico.[17][18]

Black Sea shelf deal with ExxonMobil[edit]

On 27 January 2011, Rosneft and the American company ExxonMobil signed a deal to establish a joint venture for the purpose of prospecting and extracting oil from the Tuapse field deepwater area on the Black Sea shelf, near the coast of the Krasnodar Krai.[19] The value of the deal is unknown, but ExxonMobil is expected to invest $1 billion in the project. The venture will be shared 50–50 between the companies during prospecting phase, and 2/3 – 1/3 in Rosneft's favour during the extraction phase. The Tuapse Trough is estimated to contain 7.2 billion barrels of oil equivalent. The first well could be drilled in 2012,[20] the deal also contains options for additional cooperation, such as extended exploration and production, deliveries to Rosneft's oil refinery in Tuapse, development of transport infrastructure and research on offshore oil production technologies.[21] According to analysts, offshore areas are central to Rosneft's expansionist plans, and the company is looking for foreign cooperation to bring in new technology and share risks.[20]

In April 2017, the Trump administration has denied ExxonMobil permission to continue a deal with Rosneft to drill for oil in Russia.[22]

TNK-BP acquisition[edit]

On 22 October 2012, it was announced that Rosneft will take over TNK-BP International, a parent company of TNK-BP Holding, which is the third largest oil company in Russia.[23] BP will receive in exchange of its stake $12.3 billion of cash and 18.5% of Rosneft's share, while ARR will receive $28 billion in cash.[24] According to Rosneft's CEO Igor Sechin, no discussion had been held on a buyout of minority shareholders in TNK-BP Holding,[25] the deal was completed on 20 March 2013.[26][27]

United States sanctions[edit]

On July 16, 2014, the Obama administration imposed sanctions through the US Department of Treasury's Office of Foreign Assets Control (OFAC) by adding Rosneft and other entities to the Specially Designated Nationals List (SDN) in retaliation for the ongoing Ukrainian crisis, annexation of the Crimean Peninsula by the Kremlin, and the Russian interference in Ukraine.[28][29]

Government share sale[edit]

On December 7, 2016, Rosneft signed a deal to sell 19.5% of the outstanding shares, or roughly $11 billion, to the Anglo-Swiss multinational commodity trader Glencore Plc and Qatar's state-owned wealth fund.[30] Officially, the stake was split 50/50 between Glencore and Qatar, but Glencore contributed only 300 million euros and claims only a 0.54% stake. The ownership structure includes a Cayman Islands company, QHG Cayman Limited, whose ownership cannot be traced.[31]

In 2017, the PLA-linked CEFC China Energy[32] bought a $9 billion stake in Rosneft.[33]

Essar Oil[edit]

In October 2016, Rosneft bought a 49% stake in Essar Oil of India, along with Russian investment fund United Capital, in a deal worth $13 billion.[34]



Rosneft's daily average daily crude oil production in 2010 increased by 6.4%, to 2.3 million barrels. Total crude oil output reached 847.4 million barrels of oil and gas condensate. Rosneft is also among the largest independent natural gas producers in Russia, with a total gas production of 12.3 billion cubic meters in 2010. Rosneft is widely engaged in exploration & production across all key oil & gas regions of Russia: Western Siberia, Southern and Central Russia, Timan-Pechora, Eastern Siberia, the Far East, and the shelf of Russia’s Arctic Ocean. Rosneft also operates a huge and unrivaled reserve base, as of year-end 2010, Rosneft’s total proved oil and gas reserves under PRMS classification were 22.8 billion barrels of oil equivalent, among the highest for a publicly traded petroleum company worldwide. Rosneft is also is second-to-none in terms of total proved liquid hydrocarbon reserves.[35]

Rosneft currently owns and operates seven large refineries in Russia with an aggregate annual capacity of 372 million barrels (50.9 million tonnes) and four mini-refineries. The refineries are able to process about 45% of crude oil produced by Rosneft as a whole. Rosneft owns as well a 50% stake in Ruhr Oel GmbH, the owner of stakes in four refineries in Germany with overall capacity of 23.2 million tonnes. In the medium term, Rosneft will intensify efforts to further expand its refining infrastructure. Rosneft will also continue upgrading its existing refineries to foster the production of petroleum products meeting the latest environmental standards. Rosneft is currently also the second largest national oil company by retail network, which covers 41 regions of Russia and includes 1,800 filling stations. Rosneft plans to maintain its focus on extending and optimizing the marketing network in the future, the company is constantly upgrading and expanding its refining and marketing infrastructure in order to increase the efficient sales of better-quality and higher value-added products to end customers as part of its strategy.[35]

Geological prospecting[edit]

In 2016, based on geological prospecting, 13 oil fields and 127 new deposits with the reserves totaling 207 million tons of oil equivalent were discovered. The replacement of hydrocarbon reserves of industrial categories ABC1 amounted to 354 million TOE or 126% of the production in Russia, the replacement factor for new reserves has been significantly above 100% for over ten years.[36]

Work was performed at a high level, with 85 prospecting and exploration well tests completed, 222 thousand meters of rock drilled, and 79% of exploration drilling being successful. 2D seismic survey was performed at 2.8 thousand km (+27% above 2015) while 3D seismic survey was performed at 7.9 thousand square km (+29% above 2015).[36]

According to Rosneft, the reserves increment in Western Siberia amounted to 133 million tons of oil and condensate and 87 billion cubic meters of natural gas. 37 prospecting and exploration wells tests were completed with a success rate of 89%. 45 new deposits with the total reserve of 59 million tons of AB1С1 + В2С2 were discovered. In Eastern Siberia and the Far East, the total increase in reserves amounted to 21.2 million tons of oil and condensate and 29 billion cubic meters of gas. 11 exploration well tests were completed with a success rate of 55%. 5 new deposits with reserves of 39 million tons of oil equivalent were discovered. In 2016, the total incremental reserves in the Volga-Ural region, Timan-Pechora, and southern Russia amounted to 59.9 million tons of oil and condensate and 4.8 billion cubic meters of gas. 37 well tests were completed with a success rate of 76%.[36]


Natural gas[edit]


Oil and gas processing[edit]




Corporate affairs[edit]


Prior to the initial public offering (IPO) in 2006, all of Rosneft's shares were owned by the Russian government through its holding company JSC Rosneftegaz (ru). After the placement of the company's shares on the stock exchange and the consolidation of shares of 12 subsidiaries (including Yuganskneftegaz) of Rosneft, the share of Rosneftegaz decreased to 75.16%. As of September 2012, Rosneft had over 160,000 shareholders. By December 2016, the number of individual shareholders was 138,000, with Rosneftegaz owning only 50% of the shares, BP owning 19.75%, and 30.25% owned by other shareholders.[37][38]


Gerhard Schröder: former German chancellor and currently chairman of Rosneft, which brought massive controversy as a result

Board of directors[edit]

List of members of the board of directors:[39]

Management Board[edit]

List of members of the Management Board:[40]

  • Igor Sechin - CEO, Chairman
  • Yuri Kalinin - Deputy Chairman, Vice President
  • Eric M. Liron - First Vice President
  • Gennady Bukaev - Vice President, Head of Internal Audit
  • Didier Casimiro - Vice President for Refining, Petrochemical, Commerce, and Logistics
  • Peter Lazarev - Financial director
  • Yury Narushevich - Vice President for Internal Services
  • Zeljko Runje - Vice President for Offshore Projects
  • Yuri Kurilin - Vice President, Chief of Staff
  • Andrey Shishkin - Vice President for Energy, Localization, and Innovation
  • Vlada Rusakova - Vice President

Internal control and audit[edit]

Audit Commission[edit]

List of members of the Audit Commission:[41]

  • Olga Andrianova
  • Alexander Bogashov
  • Sergey Poma
  • Zakhar Sabantsev
  • Pavel Shumov
Audit Committee of Board of Directors[edit]

List of members of the Audit Committee of Board of Directors:[41]

  • Donald Humphreys - Chairman
  • Matthias Warnig
  • Oleg Viyugin
Internal Audit Service[edit]
Company auditor[edit]

Social policy[edit]

In 2011, according to Rosneft, the company had donated $422 million to charity, 4 times than the previous year, becoming the leading Russian company devoted to philanthropy that year, at the same time, the composition of the beneficiaries were not disclosed as it was known that the oil company had previously committed to pay $180 million for the right to be the general sponsor of the 2014 Winter Olympics in Sochi.[42]

Since 2012, Rosneft, along with Gazprom, is the title sponsor of the Premier League association football team FC Tom Tomsk based in Tomsk.[43]


Violations of anti-monopoly legislation[edit]

Claims from Yukos Capital[edit]


See also[edit]


  1. ^
  2. ^ a b "Rosneft at a glance". (in Russian). Retrieved 2018-03-02. 
  3. ^ a b c "History". (in Russian). Retrieved 2018-03-02. 
  4. ^ Ведомости (2018-03-02). "РБК узнал о задержании замначальника таможни Дагестана". Retrieved 2018-03-02. 
  5. ^ "Новости, анализ, прогнозы в сфере экономики и бизнеса, общества и политики". Retrieved 2018-03-02. 
  6. ^ "History". (in Russian). Retrieved 2018-03-03. 
  7. ^ Moscow News 28 December 2004
  8. ^ AFP (9 March 2007). "Russia's Rosneft Aiming to Become Top Global Oil Company". petroleumworld. Elio Ohep Fitzgerald. 
  9. ^ "Rosneft Gets More of Yukos". Oil & Gas Eurasia. June 2007. Archived from the original on 8 February 2012. Retrieved 27 August 2007. 
  10. ^ "Rosneft Goes on Absorbing Yukos". Russia Today. 7 August 2007. Archived from the original on 28 February 2008. Retrieved 27 August 2007. 
  11. ^ "Rosneft Strategic Alliance with BP" (PDF). Rosneft. January 2011. Archived from the original (PDF) on 30 October 2012. Retrieved 30 January 2011. 
  12. ^ "BP and Russia in Arctic oil deal". BBC News. 14 January 2011. Archived from the original on 2 November 2011. 
  13. ^ "Rosneft and BP Form Global and Arctic Strategic Alliance". Rosneft. 14 January 2011. Archived from the original on 28 May 2012. 
  14. ^ "AAR files new suit against BP in bid for $10 bln compensation". Sputnik. 15 August 2011. Retrieved 29 January 2015. 
  15. ^ Yenikeyeff, Shamil (23 November 2011). "BP, Russian Billionaires, and the Kremlin: A Power Triangle That Never Was" (PDF). Oxford Energy Comment. The Oxford Institute of Energy Studies: 18. Retrieved 24 November 2011. 
  16. ^ Flynn, Alexis; Gronholt-Pedersen, Jacob (18 May 2011). "BP, Rosneft Still in Talks". The Wall Street Journal. (subscription required). Archived from the original on 17 May 2013. Retrieved 22 May 2011. 
  17. ^ "ExxonMobil in $3.2bn Rosneft Arctic pact". Upstream Online. NHST Media Group. 30 August 2011. (subscription required). Archived from the original on 7 October 2012. Retrieved 31 August 2011. 
  18. ^ Vasilyeva, Nataliya (30 August 2011). "Rosneft Teams Up with Exxon Mobil in Arctic Deal". Bloomberg Businessweek. Associated Press. Archived from the original on 2 November 2012. Retrieved 24 October 2012. 
  19. ^ Overland, Indra; Godzimirski, Jakub; Lunden, Lars; Fjaertoft, Daniel (2013). "Rosneft's offshore partnerships: The re-opening of the Russian petroleum frontier?". "Polar Record". 49 (249): 140–153. 
  20. ^ a b Oliphant, Roland (28 January 2011). "Exxon, Rosneft Sink $1Bln in Black Sea". The Moscow Times. Archived from the original on 20 March 2014. 
  21. ^ "Rosneft and ExxonMobil to Develop Black Sea Resources". Rosneft. 27 January 2011. Archived from the original on 28 May 2012. 
  22. ^ "U.S. will not give Exxon permission to drill in Russia". Reuters. 21 April 2017.
  23. ^ Taking a stake in Rosneft is a big gamble for BP. The Guardian, October 2012Archived 17 May 2013 at the Wayback Machine.
  24. ^ Korsunskaya, Darya; Callus, Andrew (22 October 2012). "Rosneft beefs up with TNK-BP purchase". Reuters. Archived from the original on 22 February 2014. Retrieved 22 October 2012. 
  25. ^ Lehane, Bill (23 October 2012). "Sechin points to multi-billion TNK-BP synergies". Upstream Online. NHST Media Group. Archived from the original on 1 March 2014. Retrieved 24 October 2012. 
  26. ^ "Rosneft finalizes TNK-BP deal, becomes world's largest oil producer". RT. 21 March 2013. Archived from the original on 29 April 2014. Retrieved 25 March 2013. 
  27. ^ Soldatkin, Vladimir; Callus, Andrew (22 March 2013). "Rosneft pays out in historic TNK-BP deal completion". Reuters. Archived from the original on 14 February 2014. Retrieved 25 March 2013. 
  28. ^ "Ukraine-related Sanctions; Publication of Executive Order 13662 Sectoral Sanctions Identifications List". 16 July 2014. 
  29. ^ "Announcement of Treasury Sanctions on Entities Within the Financial Services and Energy Sectors of Russia, Against Arms or Related Materiel Entities, and those Undermining Ukraine's Sovereignty". 16 July 2014. 
  30. ^
  31. ^ "How Russia sold its oil jewel: without saying who bought it". Reuters. 25 Jan 2017. 
  32. ^ "Opaque Chinese oil group makes clear gains in former Soviet bloc". Financial Times. 13 September 2017.
  33. ^ "Why an Enigmatic Chinese Company Just Spent $9 Billion on a Stake in Rosneft". Bloomberg. 2 October 2017.
  34. ^ Rosneft, partners buy Essar Oil for $13 billion in largest FDI deal
  35. ^ a b "Business". (in Russian). Retrieved 2018-03-07. 
  36. ^ a b c "Geological prospecting". (in Russian). Retrieved 2018-03-07. 
  37. ^ "ФСФР поддержала А.Навального в борьбе с "Роснефтью"". РБК. Retrieved 2018-03-07. 
  38. ^ "Сечин воспользовался кредитом для покупки акций "Роснефти"". РИА Новости (in Russian). 2013-08-29. Retrieved 2018-03-07. 
  39. ^ "Board of Directors". (in Russian). Retrieved 2018-03-07. 
  40. ^ "Management board". (in Russian). Retrieved 2018-03-07. 
  41. ^ a b c d "Internal control and audit". (in Russian). Retrieved 2018-03-07. 
  42. ^ Ведомости (2012-02-06). "«Роснефть» проявила неожиданную и невиданную благотворительность". Retrieved 2018-03-07. 
  43. ^ "«Томь» подписала спонсорские соглашения с «Газпром нефтью» и «Роснефтью» - Газета.Ru | Футбол россии". Retrieved 2018-03-07. 

Further reading[edit]

External links[edit]