oao rosneft headquarters sofiyskaya embankment moscow type public oao traded as mcx rosn lse rosn industry oil and gas founded 1993 ; 23 years ago 1993 headquarters moscow russia key people igor sechin ceo alexander nekipelov chairman products petroleum natural gas motor fuels petrochemicals revenue us 91.72 billion q4 2014 net income us 1.30 billion q4 2014 owner russian government 69.5 % bp 19.75 % number of employees 106 000 2014 1 parent rosneftegaz website www.rosneft.com rosneft russian ipa r s n ef t 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 . in march 2013 rosneft became the largest publicly traded oil company after buying tnk bp . 2 3 contents 1 overview 2 history 2.1 origin 2.2 yukos auctions 2004 and 2007 2.3 2006 ipo 2.4 arctic shelf deals with bp and exxonmobil 2.5 black sea shelf deal with exxonmobil 2.6 tnk bp acquisition 2.7 government share sale 3 management 4 see also 5 references 6 further reading 7 external links overview edit rosneft conducts oil and gas exploration and production activities on sakhalin island siberia timan pechora field and in 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 arkhangelsknefteprodukt pipeline and marketing companies . as of 29 december 2006 the company s market value was us 83.908 billion . 4 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 . 5 rosneft is 75.16 % owned by the russian state bp a british multinational oil and gas company headquartered in london england united kingdom owns a 19.75 % stake while around 5 % of the shares are in free float . 6 history edit origin edit this section does not cite any sources . please help improve this section by adding citations to reliable sources . unsourced material may be challenged and removed . january 2015 learn how and when to remove this template message rosneft was established in 1993 as a unitary enterprise with assets previously held by rosneftegaz the successor to the soviet union s ministry of oil and gas . during the early 1990s almost all russian 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 an order of the government of russia 971 transformed rosneft into an open joint stock company . in october 1998 the russian government appointed sergey bogdanchikov as president . the company owned two obsolete refineries and several low productive and poorly managed oil producing assets . in the late 1990s plans for rosneft s privatization in russia were made but due to competition with equally influential pretenders they were not carried out . in 2001 the company became russia s official representative on projects with production sharing agreements . in 2003 rosneft began oil production at the aday block in the atyrau region near the caspian sea in western kazakhstan . in 2004 rosneft had increased oil output from 98.56 million bbl 13.47 million tonnes in 2001 to 148.26 million bbl 20.27 million tonnes . in the same year rosneft agreed to merge with gazprom but plans were discarded in may 2005 . it is alleged that bogdanchikov did not wish to take a lesser role in the integrated company answering to gazprom ceo alexei miller . this section needs expansion . you can help by adding to it . january 2015 yukos auctions 2004 and 2007 edit the rosneft headquarters next to the saint sophia church on the bank of the moskva river starting in 2004 the russian government organized a series of auctions to sell oil giant s yukos assets of which rosneft won the majority . on 22 december 2004 rosneft had purchased a then little known russian oil company called baikal finance group . three days earlier the previously unheard of baikal group had purchased yukos main asset yuganskneftegaz yugansk at a state run auction for 9.35 billion dollars 6.9 billion euros supposedly to satisfy tax debts . many who viewed this as a de facto nationalization of yugansk . andrei illarionov then a senior putin economic advisor denounced it as the scam of the year . 7 with the addition of yungansk rosneft became russia s second largest producer of oil and gas by 2005 with an average output of 1.69 million bpd . in march 2007 rosneft had announced it hoped to increase production from 80 million tonnes in 2006 to 103 million tonnes by the end of 2007 wanted to extract 140 million tonnes of oil by 2012 and become a global top three energy company . 8 in june 2007 rosneft paid 731 million for the transportation assets of yukos which had declared bankrupt in august 2006 after three years of litigation over tax arrears . 9 in august 2007 bogdanchikov said that although the yukos acquisitions had increased rosnefts debt to us 26 billion he planned to reduce debt to 30 % of total assets by 2010 by tripling refining capacity and expand into china . 10 2006 ipo edit this section does not cite any sources . please help improve this section by adding citations to reliable sources . unsourced material may be challenged and removed . january 2015 learn how and when to remove this template message on 14 july 2006 rosneft conducted one of the largest initial public offerings in financial history after placing nearly 15 % of its shares on the russian trading system and the london stock exchange . the offering raised usd 10.7 billion . shares were priced at 7.55 resulting in rosneft being valued at 79.8 billion . rosneft achieved its objective largely by arranging bilateral deals with strategic investors such as british petroleum petronas and cnpc which bought almost 2.6 billion worth of shares during the ipo . three oligarchs invested over 1 billion each on the lse namely roman abramovich vladimir lisin and oleg deripaska . critics of the deal included financier george soros who called on investors to boycott it on ethical grounds and andrei illarionov who called the deal illegal and a crime against the russian people because none of the proceeds would go into the state budget . the british financial services authority authorised the flotation of rosneft shares despite an appeal from yukos saying that to allow the rosneft ipo would be tantamount to facilitating the sale of stolen goods . arctic shelf deals with bp and exxonmobil edit see also east prinovozemelsky field location of the epnz 1 epnz 2 and epnz 3 oil and gas areas in the kara sea on 15 january 2011 rosneft and british petroleum bp announced a deal to develop the east prinovozemelsky field on the russian arctic shelf between the yamal peninsula and novaya zemlya island . 11 as part of the deal rosneft was to receive 5 % of bp s shares worth approximately 7.8 billion as of january 2011 and bp would get approximately 9.5 % of rosneft s shares in exchange . 12 according to the deal the two companies would create an arctic technology centre in russia to develop technologies and engineering practices for safe arctic hydrocarbons extraction . 13 aar which represents four billionaires of russian origin and is bp s russian partner in the tnk bp joint venture blocked the bp rosneft deal in international courts arguing it breached earlier contracts between bp and aar . 14 15 the tnk bp partners had previously signed a shareholding agreement which stipulated that their russian joint venture would be the primary corporate vehicle for bp s oil and gas operations in russia . 16 on 30 august 2011 rosneft announced that instead of bp the partner for epnz 1 epnz 2 and epnz 3 in the kara sea will be exxonmobil . in exchange subject to approval by u.s. regulators in addition to a share in oil production in russian fields rosneft was granted participation in u.s. fields in texas and the gulf of mexico . 17 18 black sea shelf deal with exxonmobil edit on 27 january 2011 rosneft and the american company exxonmobil signed a deal to establish a joint venture for the purpose of prospecting and extracting oil from the tuapse field deepwater area on the black sea shelf near the coast of the krasnodar krai . the value of the deal is unknown but exxonmobil is expected to invest 1 billion in the project . the venture will be shared 50 50 between the companies during prospecting phase and 2 3 1 3 in rosneft s favour during the extraction phase . the tuapse trough is estimated to contain 7.2 billion barrels of oil equivalent . the first well could be drilled in 2012 . 19 the deal also contains options for additional cooperation such as extended exploration and production deliveries to rosneft s oil refinery in tuapse development of transport infrastructure and research on offshore oil production technologies . 20 according to analysts offshore areas are central to rosneft s expansionist plans and the company is looking for foreign cooperation to bring in new technology and share risks . 19 tnk bp acquisition edit on 22 october 2012 it was announced that rosneft will take over tnk bp international a parent company of tnk bp holding which is the third largest oil company in russia . 21 bp will receive in exchange of its stake 12.3 billion of cash and 18.5 % of rosneft s share while arr will receive 28 billion in cash . 22 according to rosneft s ceo igor sechin no discussion had been held on a buyout of minority shareholders in tnk bp holding . 23 the deal was completed on 20 march 2013 . 2 3 government share sale edit in august 2014 it was announced that preparations by the russian government to sell a 19.5 percent stake in the company were underway and would most likely be sold in two tranches . 24 management edit a rosneft petrol station moscow as of december 2006 notable members of the rosneft board of directors consisted of igor sechin chairman sergey bogdanchikov president of rosneft 25 sergey naryshkin chairman of the state duma matthias warnig former member of the east german state security forces stasi 26 john j. mack 2013 2014 formerly morgan stanley 27 see also edit companies portal energy portal russia portal list of oil exploration and production companies list of companies of russia references edit ojsc rosneft oil company . top 20 largest oil & gas employers . retrieved 11 april 2016 . a b rosneft finalizes tnk bp deal becomes world s largest oil producer . rt. 21 march 2013 . archived from the original on 29 april 2014 . retrieved 25 march 2013 . a b soldatkin vladimir ; callus andrew 22 march 2013 . rosneft pays out in historic tnk bp deal completion . reuters . archived from the original on 14 february 2014 . retrieved 25 march 2013 . capitalization of russian stock market increases 1.6 % on thursday . interfax . 29 december 2006 . archived from the original on 5 february 2012 . retrieved 27 august 2007 . clark torrey 28 may 2009 . rosneft s net