Who is GK Satish, 1st Indian to be appointed on Russian oil giant Rosneft's board?
By Team Newsable | First Published Jul 7, 2023, 1:22 PM ISTGK Satish, who retired as director for business development at IOC in 2021, is one of the three new faces appointed to the 11-strong board of directors of Rosneft.
Rosneft, the Russian energy giant, has made a significant move towards enhancing trade ties with India by appointing a former Indian Oil Corporation (IOC) director to its board. GK Satish, who retired as IOC's director for business development in 2021, is one of three new members joining Rosneft's 11-member board of directors, as announced by the Russian company.
This appointment holds significance as Rosneft already has partnerships with IOC in oil and gas fields in Russia. Furthermore, it supplies crude oil to IOC and other Indian firms, and has recently begun shipping naphtha to Gujarat refiners. The addition of Satish, the first Indian to join Rosneft's board, reflects the company's intention to expand its collaboration with Indian firms, including potential liquefied natural gas (LNG) deals.
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Satish brings extensive knowledge of the Indian oil and gas market, along with expertise in petroleum product marketing, petrochemicals, LNG, and international trade. Among the 11 members of the Rosneft board, he is one of five independent directors.
During his tenure on the IOC board from September 2016, Satish also served as chairman of IndianOil Adani Gas Pvt Ltd, a joint venture between IOC and Adani Group for retailing compressed natural gas (CNG) and piped cooking gas. This collaboration propelled the Adani Group to become the largest operator in the city gas sector.
Rosneft recently held its annual general meeting, during which shareholders elected the new board of directors. Igor I Sechin, a trusted associate of Russian President Vladimir Putin, remains the CEO and chairman of Rosneft's management board.
Other members appointed include "Govind Kottis Satish, Managing Director, Value Prolific Consulting Services Pvt Ltd (ValPro)," it said.
ValPro specializes in mergers and acquisitions and investment banking, with former IOC chairman MA Pathan serving on its board of advisors, and its top management comprising former IOC executives.
Russia sells about 2 million barrels per day of crude oil or 100 million tonne on an annualised basis to Indian firms.
Rosneft holds a term deal to sell 6 million tonnes of crude oil per year to Satish's former company, and is seeking similar agreements with other state-owned refiners like Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL).
Furthermore, Rosneft is the majority owner of Nayara Energy, which operates a refinery with an annual capacity of 20 million tonnes in Vadinar, Gujarat, and owns over 6,300 petrol pumps across India.
IOC, along with Bharat PetroResources Ltd (a subsidiary of BPCL) and Oil India Ltd, purchased a 23.9 per cent stake in Rosneft's Vankor oilfield for $2.02 billion in 2016. The consortium also acquired a 29.9 per cent stake in the Taas-Yuryakh oilfield in East Siberia for $1.12 billion.
IOC is the largest importer of Russian oil in India and the sole company with a long-term delivery agreement with Rosneft. Notably, Rosneft's board also includes representatives from Qatar and the Philippines, further highlighting its global reach.
"Mohammed Bin Saleh Al-Sada (chairman of the board of trustees of Dohal University of Science and Technology) has been elected Chairman of Rosneft Oil Company Board of Directors," Rosneft said.
In summary, Rosneft's appointment of GK Satish to its board underscores the company's aim to strengthen trade links with India. With his extensive experience and insights into the Indian oil and gas market, Satish's addition is expected to facilitate further cooperation between Rosneft and Indian firms, potentially extending to LNG sales and beyond.
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