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The oil czar: Rosneft
Rosneft is a Russian integrated energy company, it specializes on exploration, extraction, production, refinement, transport, and sale of petroleum, natural gas, and petroleum products. It was founded in 1993 as a state enterprise and later incorporated in 1995, the company acquired a big number of state-controlled gas and oil assets and it became Russia’s leading oil company after purchasing assets of former oil company Yukos at state-run auctions. Rosneft became the world’s largest publicly-traded petroleum company.
Rosneft has demonstrated high operations efficiency and succeeded in providing substantial support to the Russian government budget due to the completion of a privatization transaction and tax deductions, the main success was, the completion of an integral transaction to privatize a 19.5% stake in the company and the majority share of Bashneft, as a result of which the Russian State received 1.04 trillion rubles.
The key objectives of the company are the effective production at brownfields and production increase through the development of greenfields, creation of new production clusters on the shelf, development of technologies, and implementation of high-level project management practicies, monetization of gas reserves and competitive production growth, optimal configuration of the refineries and maximization of profits in distribution. If all of these objectives were possible to apply on Rosneft sustainable development, its shareholders will have excellent benefits in the future.
- Assets: Something valuable belonging to a person or organization that can be used for the payment of debts.
- State-run auctions: A usually public sale of goods or property, where people make higher and higher bids (offers of money) for each thing, until the thing is sold to the person who will pay most.
- Shelf: A long, flat board fixed horizontally, usually against a wall or inside a cupboard so that objects can be stored on it.
- Shareholders: A person who owns shares in a company and therefore gets part of the company’s profits and the right to vote on how the company is controlled.
- Which other Russian companies do you know?
Welcome to this activity created by Learning Advisor Mr. Hugo Enrique Sánchez Arias from Reforma Branch. Take note of all the pink words, read the text, watch the video and answer the question in the comment section below.