India Russia sign first ever Term Contract to import crude oil to India
On February 5, 2020, the Minister of Petroleum and Natural Gas Shri Dharmendra Pradhan and the Chairman of Rosneft (Russia’s largest oil producing company) signed the first ever term contract. According to the contract India will import 2 million metric tonnes of Urals grade crude oil.
The agreement was signed between IOCL and Rosneft. The companies discussed on energy cooperation and hydrocarbon enhancement.
Rosneft is the largest oil producing company in Russia. The company is extended over 20 countries in the world. The company is to bid in the disinvestment of BPCL (Bharat Petroleum Corporation Limited). On November 20, 2019, the Union cabinet approved to privatize BPCL selling 52.98% of its stakes to private sector.
India and Russia Oil Ties
After the crude oil agreement, India and Russia are also looking for ways to sign agreements to bring LNG (Liquefied Natural Gas) supplies from Russia. Russia is estimated to posses 10 to 14 billion tonnes of oil and 15 trillion cubic metres of gas. The rich resources of Russia extends till Serbia in Pacific Ocean in the far East region.