Rosneft

Rosneft  is an integrated oil company majority owned by the Government of Russia. Rosneft is headquartered in Moscow’s Balchug district near the Kremlin, across the Moskva river. Rosneft became Russia's leading extraction and refinement company after purchasing assets of former oil giant Yukos at state-run auctions.

Overview

Rosneft conducts oil and gas exploration and production activities on Sakhalin island,Siberia, Timan-Pechora field and southern Russia, including Chechnya. It owns and operates two refineries. The refinery in Tuapse, on the Black Sea, focuses on refining high-gravity oil from western Siberia. Another plant in Komsomolsk-on-Amur is the easternmost refinery in Russia. The Komsomolsk Refinery benefits from its technological integration with Nakhodkanefteprodukt, while the Tuapse Refinery is noted for its favorable location on the Black Sea coast and is part of an integrated complex with Tuapsenefteprodukt. Rosneft operates shipping, pipeline and marketing companies. As of 29 December 2006, the company’s market value was US$83.908 billion.Rosneft net income fell 20% for the first quarter of 2009 from $2.56 billion to $2.06 billion due to the weakness of oil price Rosneft is 75.16% owned by the Russian state, while around 15% of the shares are in free float.Rosneft was established in 1993 as a Unitary enterprise on the basis of assets previously held by Rosneftegaz, the successor to the Soviet Union's Ministry of Oil and Gas. During early 90s almost all Russian local 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, a Government of Russia Resolution № 971 transformed Rosneft into an open joint stock company. In October 1998, the Russian government appointed Sergey Bogdanchikov as president. The company had only two obsolete refineries and several low-productive and poorly managed oil-producing assets. Several plans for company's privatization were composed in late 90s but due to struggle of equal influential pretenders they were never fulfilled.Rosneft increased oil output from 98.56 million bbl (13.47 million tonnes) in 2000 to 148.26 million bbl (20.27 million tonnes) in 2004. In 2001, the company became Russia’s official representative on projects with production sharing agreements (PSA). In 2003, it began production at the Aday block near the Caspian Sea in Western Kazakhstan. In 2004 the company agreed to merge with Gazprom. The merger plans were discarded in May 2005, allegedly because Bogdanchikov did not wish to take a lesser role in the integrated company answering to Gazprom CEO Alexei Miller.

Net income $12.4 billion (2011)