500,000 Barrels A Day: Inside India’s Massive $13 Billion New Oil Partnership With Russia

Russia’s state-owned energy giant Rosneft has struck a massive deal with India’s private oil refiner Reliance Industries. This agreement, worth an eye-popping $13 billion annually, will see Rosneft supplying nearly 500,000 barrels of crude oil every single day to Reliance, making it the biggest oil deal ever between the two nations.

So, what’s in the deal?

Under this agreement, Rosneft will deliver 20-21 cargoes of crude oil every month, each carrying between 80,000 to 100,000 metric tons of oil. That’s not all—an additional three shipments of fuel oil, totaling about 100,000 tons each, will also be sent monthly. These shipments will head to Reliance’s giant oil refining complex in Jamnagar, Gujarat—the largest refinery of its kind in the world.

This arrangement kicks off in January and comes with a unique feature: the pricing and volumes will be reviewed every year. On top of that, both parties have the option to extend this deal for another ten years if it proves succes...