PJSC Rosneft Oil Company (Роснефть stylized as ROSNEFT) is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products. The company is controlled by the Russian government through the Rosneftegaz holding company. Its name is a portmanteau of the Russian words Rossiyskaya neft .[2][3]
Rosneft was founded in 1993 as a state enterprise and then incorporated in 1995, acquiring many state-controlled gas and oil assets. It became Russia's leading oil company after purchasing assets of the former oil company Yukos at state-run auctions. After acquiring OJSC TNK-BP in 2013, one of the largest oil companies in Russia, Rosneft, became the world's largest publicly traded petroleum company.[3][4]
Rosneft is the second largest Russian company and state-controlled company 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. In the 2020 Forbes Global 2000, Rosneft was ranked as the 53rd-largest public company in the world.[6] The company operates in more than 20 countries around the world.[2][3][7]
History
Origins
Rosneft has played a major role in the history of Russia's oil industry. The first use of the name Rosneft dates back to the late 19th century, when exploration of oil fields in Sakhalin began in 1889. Most of Rosneft's current assets were acquired during the Soviet era.[3]
1990s
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 Industry. 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 due to acquisitions. On 29 September 1995, an Order of the Government of Russia No. 971 transformed Rosneft into an open joint stock company.[8]
Sanctions
On 16 July 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 Sectoral Sanctions List (SSL) in retaliation for the annexation of the Crimean Peninsula by the Kremlin and the ongoing Russian interference in Ukraine.[69] On 12 September 2014 the United Kingdom also sanctioned Rosneft.[70]
The first Trump administration expanded further sanctions on its Swiss-incorporated company (Rosneft Trading S.A.) and its president Didier Casimiro on 18 February 2020, for supporting Venezuela's Nicolás Maduro regime by operating in the oil sector of the Venezuelan economy.[71][72]
In March 2022, as a result of the 2022 Russian invasion of Ukraine
Operations
Rosneft's daily average crude oil production in 2010 increased by 6.4%, to 2.3 Moilbbl. Total crude oil output reached 847.4 Moilbbl of oil and gas condensate. Rosneft is also among the largest natural gas producers in Russia, with a total gas production of 12.3 e9m3 in 2010. Rosneft is engaged in exploration and production across all key oil and 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. As of year-end 2010, Rosneft's total proved oil and gas reserves under PRMS classification were 22.8 Goilbbl of oil equivalent, among the highest for a publicly traded petroleum company worldwide. Rosneft is also second-to-none in terms of total proved liquid hydrocarbon reserves.[80][81]
In 2016, based on geological prospecting, 13 oil fields and 127 new deposits[15] with the reserves totaling 207 million tons of oil equivalent
Corporate affairs
Shareholders
Before the initial public offering (IPO) in 2006, all of Rosneft's shares were owned by the Russian government through its holding company JSC Rosneftegaz. After the company's shares were placed on the stock exchange and the consolidation of shares in 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.[93][94] In August 2021, Igor Sechin increased his own share at Rosneft from 0.1273% up to 0.1288%.[95]
Management
Controversies
Violations of anti-monopoly legislation
In October 2009, the Federal Antimonopoly Service (FAS) imposed on Rosneft a record fine of ₽5.3 billion ($175M) for violating anti-monopoly legislation. The fine was imposed for the abuse of power in the petroleum market recorded in the first half of 2009, which was expressed in the "seizure of goods from circulation, which led to higher prices in the wholesale segment of the oil products market, creating discriminatory conditions for the sale of oil products to individual counter-parties." As FAS has calculated, these actions led to an increase in prices in the wholesale markets of motor gasoline, diesel fuel, and aviation kerosene in the first half of 2009.[102]
Western claims from Yukos Capital
On 9 August 2010, a former subsidiary of Yukos, Yukos Capital Sarl of Luxembourg, was seeking to have Rosneft repay the debts of companies that previously belonged to Yukos. After the seizure of Rosneft's assets in the United Kingdom and the denial of an appeal by the Supreme Court of the Netherlands, Rosneft said that Yukos Capital paid Yuganskneftegaz its debt of ₽12.9 billion ($426M).
See also
- List of countries by oil exports
- List of countries by oil production
- List of countries by natural gas exports
- List of companies of Russia
- List of oil exploration and production companies
- Petroleum industry in Russia
Further reading
- Stuart D. Goldman (2006) CRS Report for Congress
- Bernard A. Gelb (2006) Russian Oil and Gas Challenges
- Energy Information Administration (EIA). Russia Country Analysis Brief,
- TNK-BP. Kovykta Project Viewed 28 December 2005
- Mevlut Katik (2003)Blue Stream's Pipeline's Future in Doubt Amid Russian Turkish Pricing Dispute
- Yukos Receives Bill for Nearly $1 billion in Back Taxes October 2004
- Gazprom to acquire Yuganskneftegaz buyer
External links
- Rosneft Oil production, refining, reserves and capex by division, segment and period (Grmike, wikinvest)
- Yahoo! – OAO Rosneft Oil Company Company Profile
- Rosneft Oil analytics information
- Rosneft ecosystem in Russia (2013)
References
- Shareholder structure^
- Rosneft at a glance Rosneft, retrieved 2 March 2018^
- History of Rosneft Rosneft, retrieved 2 March 2018^