Russian oil tycoon: Rosneft giant, the heart of the Russian economy

Russia has a 'giant' of the natural gas industry called Gazprom, in the petroleum industry, Russia has Rossiyskaya Neft or what is known as Rosneft. The company specializes in the exploration, extraction, production, refining, transportation, and sale of oil and gas.

Rosneft was founded in 1993. After the Cold War ended and the Soviet Union disbanded. Its initial status was a state company. After 29 September 1995 under the Russian Government Regulation No. 971 Rosneft becomes a public joint stock company. However, the Russian government still controls the company through a state-owned holding company called Rosneftegaz.

Some say the name Rosneft began to be used since the late 19th century. When exploration of the oil fields on Sakhalin began in 1889. At that time Russia was still an empire and the king when the oil installation was opened was Tsar Alexander III reigning. In many countries, that era was the era of oil drilling.

Most of these assets in the hands of Rosneft were the result of the construction of the communist Soviet Union. In the days of the Soviet Union, oil and gas were under the control of the Minnefteprom aka the Soviet Ministry of Oil and Gas. Oil production in that era was not for trading like it is today.

After the Soviet Union collapsed, according to Norman E. Saul in the Historical Dictionary of Russian and Soviet Foreign Policy (2014:310) Rosneft became the largest major oil company in Russia. In addition, it is also one of the largest oil companies in the world. Russia itself, even though the Soviet Union disbanded, remains a great country in the world.

Rosneft grew bigger after taking over the assets of the Yukos oil company in 2006. This oil company was also founded in 1993. In 2006, a public offering of shares was made. In ownership, the Russian government shares trying to maintain its position as the owner of the ownership with 75% of its shares.

Regarding its influence in the Russian corporate world, Xiobing Li and Michael Molina mentioned in Oil: A Cultural and Geographic Encyclopedia of Black Gold [2 Volumes] (2014:338) Rosneft is second only to Gazprom. Rosneft has control over reserves of 784 billion cubic meters of natural gas and 22.3 billion barrels of oil.

Rosneft, which produces oil, and Gazprom, which sells gas to Europe, are Russian cash fields. Rosneft is one of Russia's largest job providers. Rosneft says they are Russia's biggest taxpayers, making up a fifth of the revenue budget.

Now, after the Ukraine-Russia tensions, Rosneft and Gazprom are the ones to hit. Gazprom's shares on the London stock exchange slumped 53% and Rosneft also slumped 42%. British oil and gas company, British Petroleum (BP) wants to sell Rosneft shares, which are almost 20 percent, related to the war that is currently happening in Ukraine.

The disruption in energy sales from Russia's Gazprom and Rosneft is feared to have repercussions for the global economy. The European Union gets about 40% of its gas imports and more than a quarter of its oil from Russia.

In Indonesia, this company also has a track record in one of Russia's 'giant' projects in Indonesia, namely the new fuel oil (BBM) refinery project (Grass Root Refinery/GRR) in Tuban, East Java.

The State-Owned Enterprises (BUMN) in the oil and gas sector from Russia that invested in this oil refinery project are Rosneft. Rosneft in collaboration with PT Pertamina (Persero) formed a joint venture company named PT Pertamina Rosneft Processing and Petrokimia (PRPP).

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Russian oil tycoon: Rosneft giant, the heart of the Russian economy

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