Latest news with #RosneftOilCompany
Business Upturn
27-06-2025
- Business
- Business Upturn
Energy Without Illusions: Igor Sechin on the New Landscape of Global Energy
The energy of the future, the challenges of the digital revolution, and the role of nuclear power were the central themes of Igor Sechin's address at the St. Petersburg International Economic Forum 2025. The CEO of Rosneft Oil Company, head of one of Russia's largest companies, denounced the 'net-zero' concept as an energy regression, underscored the special importance of electricity in the age of AI, predicted that China would emerge as the new global energy leader, and highlighted Russia's potential to develop a balanced new-energy mix. China: From Consumer to Exporter In his report, 'An Odyssey of the World Economy in Search of the Golden Fleece: The New Landscape of Global Energy,' Igor Sechin placed particular emphasis on China's role in tomorrow's energy sector. According to him, the PRC is no longer merely safeguarding its own energy security; it is confidently moving toward a new status – that of a net energy exporter. These successes, he noted, stem from a ba – lanced strategy rather than dogmatic adherence to trends. China does not bet exclusively on renewable energy sources (RES); instead, it advances multiple vectors at once – boosting coal production while simultaneously retaining leadership in solar and wind generation. Such an approach avoids lowering energy-flow density and prevents degradation of power systems. Sechin argued that talk of declining global demand for energy resources lacks foundation. On the contrary, several structural factors will only spur growth in worldwide energy consumption – chief among them the need to guarantee energy security, widening fiscal deficits and public debt, demographic trends, and large-scale digitalization. The digital revolution, according to Sechin, must become a foundation for productivity growth. He emphasized the decisive role of artificial intelligence and big data in reshaping the global energy landscape. Citing research from Goldman Sachs, he stated that large-scale adoption of advanced technologies could increase labor productivity by 1,5 percentage points in developed countries and by 1 percentage point in developing countries over the next decade. These challenges – not formal climate targets detached from reality – must, in his view, shape the energy strategies of the world's leading nations. Electricity – the New Oil Sechin devoted special attention to electricity, dubbing it the 'new oil' of the twenty-first century. The rise of artificial intelligence, the proliferation of data centers, and the accelerated rollout of electric transport are turning electricity into the key resource of the new technological order. Yet, he stressed, for electricity to truly drive development, it is not enough simply to expand generation; the quality and resilience of power systems must be improved. Another source to which the Rosneft chief assigned a pivotal role in the future energy balance is nuclear power. In a world where renewables still cannot deliver the required energy-flow density and hydrocarbons face relentless pressure from environmental activists, nuclear energy offers a way to maintain grid stability. He noted that over the past 15 years, global electricity consumption has grown at an accelerated pace. And in the next 25 years, according to IEA projections, global electricity generation is expected to double. Moreover, Sechin projected that as early as 2025, global investment in the electric power sector will exceed investment in fossil fuels by 50 percent. Russia, Sechin reminded the audience, is a leading nation in this field. The country now offers competitive, technologically advanced civil-nuclear solutions, including within the framework of international projects. Energy Synthesis, Not Energy Substitution Addressing the 'energy transition,' Sechin rejected the idea of rigidly replacing one source with another. Instead, he proposed a model of synthesis – combining traditional and alternative energy sources so that new technologies complement and reinforce the existing system rather than displacing it. This approach, he argued, avoids technological disruptions while ensuring economic efficiency and energy security. A key takeaway from Sechin's speech was his criticism of the net-zero doctrine. Abruptly abandoning traditional energy sources for climate goals, he warned, threatens the world with an energy regression. Without a comprehensive transformation of the entire energy infrastructure, integrating renewables will lead not to sustainable development but to reduced accessibility and reliability of energy supplies, he contended. Russia, meanwhile, can offer the world a more balanced and pragmatic development model in this arena. Sechin also addressed Europe's policy toward Russian energy exports. He recalled that the European Union continues to push for a lower price cap on Russian oil — down to $45 per barrel. 'In my view, the real goal is to increase the efficiency of Europe's purchases from Russia, rather than to reduce the revenue of the Russian budget, as publicly declared', — Sechin argued. The numbers, he noted, support this interpretation: according to Western experts, since early 2023, Europe has purchased over 20 billion euros worth of Russian oil — making it the fourth-largest buyer by volume Ahmedabad Plane Crash
Arabian Business
18-04-2025
- Business
- Arabian Business
Rosneft Oil Company's expansion in a world of energy uncertainty
In a year where most global oil giants are tightening their belts, Rosneft is charting a different course. The Russian oil major reported capital expenditures of RUB 1.4 trillion in 2024 – an 11.2 per cent increase from the previous year. At a time when sanctions, inflation-linked tariffs, and rising security costs are squeezing the sector, this level of investment might appear counterintuitive. But for Rosneft Oil Company, it's a clear signal: consolidation isn't the priority – expansion is. This isn't just about defying pressure. It's about recalibrating the centre of gravity in global oil production. Scale, efficiency, and global positioning Rosneft's 2024 production numbers are striking. The company extracted 255.9 million tonnes of oil equivalent – 184 million tonnes of oil and 87.5 billion cubic metres of gas – placing it ahead of ExxonMobil, Shell and Chevron in total output. It has also reaffirmed its position as Russia's largest independent gas producer. What makes this scale more compelling is the cost behind it. Rosneft's unit production cost sits at $2.9 per barrel of oil equivalent. That's not just competitive – it places the company among the most efficient producers globally. And Rosneft is using that efficiency to its advantage. Over the past year, the company commissioned more than 3,000 wells – 72 per cent of them horizontal – and completed testing on 62 exploration wells, with an 89 per cent success rate. These aren't symbolic numbers. They reflect a deliberate strategy of expanding access to reserves while maintaining control over cost. Vostok Oil: Russia's energy frontier At the heart of this approach lies Vostok Oil – one of the largest infrastructure and production projects in Russia's modern energy history. In 2024 alone, the Vostok project grew from 52 to 60 licensed zones, with its total resource potential reaching 7 billion tonnes of oil under Russian classification. This is not simply a development initiative – it's a reorientation of Russia's energy export infrastructure toward Asia, particularly China and India. With Europe now largely cut off as a trading partner, Rosneft's logistical investment in the Russian Northern territories isn't just about increasing supply – it's about building new routes, new partnerships, and a new regional energy map. Operating through pressure To describe Rosneft's environment in 2024 as 'challenging' would be an understatement. The company is contending with OPEC+ restrictions, elevated anti-terrorism costs, a tighter tax regime, and increasing interest rates – all while under the weight of intensified international sanctions. What stands out is not that Rosneft continues to operate under these constraints, but that it is actively scaling projects. It is expanding its asset base, enhancing its geological exploration, and investing in infrastructure that will take years to fully realise. In effect, Rosneft is pursuing long-term resilience through short-term action. The rationale is clear: consolidate reserves now, secure logistics now, and increase extraction capabilities now – before geopolitical and technological barriers become even more entrenched. The future through a different lens While the broader energy narrative in Europe and parts of the Middle East increasingly revolves around transition and decarbonisation, Rosneft is approaching the future from a different angle. The company's focus on hydrocarbons isn't ideological – it's infrastructural. Rosneft's leadership appears to be working from a timeline in which global oil demand, especially in emerging markets, will remain robust for the foreseeable future. Its low-cost structure, proven reserves, and evolving transport corridors put it in a position to meet that demand, even as other producers shift strategies. The contradiction is worth noting: while much of the world sees fossil fuels as a legacy liability, Rosneft is treating them as a foundation for geopolitical and economic leverage. And for now, the data suggests it's succeeding. Whether this approach proves sustainable in a world racing toward net-zero is an open question. But in 2024, Rosneft is doing more than navigating volatility – it's rewriting the playbook for how an energy company can grow, even as the ground shifts beneath it.
Zawya
08-04-2025
- Business
- Zawya
Russia: Rosneft Oil Company Publishes 2024 Financial Results, Achieving Record Revenue
In 2024, Rosneft Oil Company achieved record-breaking figures in revenue, EBITDA, and tax payments, according to the company's published results for the period, prepared in accordance with International Financial Reporting Standards (IFRS). Rosneft's Oil Company revenue for 2024 increased by 10.7%, reaching 10.1 trillion rubles, surpassing the growth rates of international oil and gas companies such as Shell, Chevron, Exxon, Equinor, and Total. The company's profit before taxes and interest (EBITDA) grew by 0.8%, amounting to 3 trillion rubles, with an EBITDA margin of 29.7%. 'Rosneft Oil Company is the largest taxpayer in the country. The total amount of taxes and other payments to the consolidated budget of the Russian Federation in 2024 exceeded 6.1 trillion rubles. This is the highest figure not only in the company's history but also in the Russian market as a whole', commented Igor Sechin, the CEO of Rosneft Oil Company. Net profit attributable to Rosneft Oil Company shareholders in 2024 amounted to 1.08 trillion rubles, marking the second-highest result in the company's history. This achievement came despite significant negative impacts on the figure, including higher borrowing rates, as well as non-cash factors such as the revaluation of foreign currency liabilities and an increase in the corporate income tax rate. Rosneft's Oil Company capital expenditures in 2024 totaled 1.4 trillion rubles, an 11.2% increase year-on-year, driven by the planned implementation of the investment program in the Exploration and Production segment. Meanwhile, free cash flow for the reporting period amounted to 1.3 trillion rubles. Over the 12 months of 2024, the company's hydrocarbon production reached 255.9 million tons of oil equivalent, including 184 million tons of oil and 87.5 billion cubic meters of gas. Rosneft Oil Company maintained its status as Russia's largest independent gas producer and, despite restrictions under the OPEC+ agreement, outperformed major international companies such as ExxonMobil, Shell, and Chevron in production volumes. © Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (
